Ford plans to sell off Mazda
The rest of the stake is to be bought by a group of Mazda’s business partners. The sale would provide Ford some desperately needed cash as it awaits a decision from Washington on government aid for the auto industry or eventual bankruptcy.
10/22/08 Ford Motor Co will sell up to five per cent of Mazda Motor Corp to Hiroshima Bank, nearly completing its search for buyers of the US automaker's partial stake in its Japanese affiliate, Kyodo news reports.
Cash-strapped Ford, reeling from tanking sales at home, is finalizing plans to sell part of its controlling 33.4 per cent stake in Mazda to a number of Japanese firms, preparing to outline the deal by next month, local media have said.
Kyodo, citing sources familiar with the matter, said Mazda was looking to buy about half the shares that Ford is selling. The report did not say what portion of its Mazda stake Ford was looking to offload. National broadcaster NHK reported earlier this month that it was looking to sell a 20 per cent stake.
At Tuesday's closing price, Mazda was valued at $US3.95 billion.
Shares in Mazda dropped 7.4 per cent to 263 yen in morning trade, while Hiroshima Bank was flat at 391 yen. The Nikkei average fell 2.9 per cent.
By purchasing Mazda shares, Hiroshima Bank may be looking to support the network of factories and subcontractors in Hiroshima prefecture, where Mazda has its headquarters.
A spokeswoman at the regional bank — the biggest in western Japan — said the company was checking the report. Mazda said it had nothing to announce.
10/16/08 Mazda Motor Corp. may buy back part of the one-third stake owned by Ford Motor Co. as the second- largest U.S. automaker considers unwinding its holdings, two people with knowledge of the discussions said. Mazda may be joined by other Japanese companies to spread the risk, while Ford would keep part of its holding, said the people, who asked not to be identified because details including the price haven't been set. A transaction may occur next month, the people said.
Ford may reduce its three-decade-old investment in Mazda, ceding effective control, to boost cash as Chief Executive Officer Alan Mulally works to end losses. The holding was valued at $1.33 billion based on Mazda's share price yesterday in Tokyo.
“It finally clears a cloud over Mazda,'' said Koji Endo, an analyst at Credit Suisse Securities (Japan) Ltd. in Tokyo. “Having new stable shareholders will eliminate worries about Ford's move on Mazda's stake.''
Mark Truby, a Ford spokesman, declined to comment. “Nothing has been decided,'' said Ken Haruki, a spokesman for Hiroshima, Japan-based Mazda.
Ford holds 33.4 percent in Mazda and has been an investor in Japan's fifth-largest automaker since 1979. The companies jointly own factories, and Ford has based midsized models such as the Fusion sedan on Mazda's Mazda6. Bloomberg
10/11/08 Mazda denied today that a decision had been made by troubled Ford Motor Co. to sell its stake in the Japanese automaker, but it didn’t rule out a possible deal. Japanese media reported today that Ford was considering selling its one-third stake in Hiroshima-based Mazda Motor Corp. Public broadcaster NHK TV, without citing sources, reported that Ford would maintain some of its stake in Mazda and management ties.
"Nothing has been decided," Mazda said in a statement received today by the Associated Press. "Any important decision will be disclosed."
Ford said in a statement, “We do not want to comment on speculation."
“Our relationship with Mazda has not changed," it said.
The move, should it happen, would be a symbolic retreat for U.S. automakers in Japan. General Motors Corp. similarly sold off its stakes in Japanese automakers in recent years.
10/11/08 Ford Motor Co is considering selling its stake in Japan's Mazda Motor Co, a source familiar with the matter said on Saturday, as debt-laden U.S. automakers struggle with weakening auto sales and the global credit crunch.
Japanese broadcaster NHK said earlier that Ford, which has 33.4 percent of Mazda, was considering selling about 20 percent and had already approached Japanese companies for the sale, adding Mazda would likely buy some of the shares.
The source did not specify how many shares Ford wanted to sell. Mazda has a market capitalization of about 408.5 billion yen ($4.1 billion), which would value Ford's entire stake at around $1.36 billion.
Slowing auto sales and the global financial crisis have sent shares of Ford and its U.S. rival General Motors Corp plunging, with investors questioning their turnaround plans.
Ford Chief Executive Alan Mulally on Friday ruled out a bankruptcy filing, saying the No. 2 U.S. automaker was focused on its turnaround and managing its cash "very, very carefully" as the market slowdown in the United States spreads to Europe and Asia. More at Reuters
[Editor's Note: Mazda was the only thing left at Ford that was profitable. Stick a fork in Ford. They're done.]