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Ford to sell Mazda???

October 12, 2008

Source: LeftLaneNews.com

Original story: Ford is in the process of finding potential buyers for its 33.4 percent stake in Mazda, sources told Reuters late Friday. Ford — often viewed as the parent company of Mazda despite owning only a third of the company — recently sold its Aston Martin, Jaguar, and Land Rover brands in an effort to raise capital. Ford’s stake in Mazda is said to be worth around $1.36 billion — money the struggling automaker could use during this difficult time.

Earlier, Japan’s NHK reported the automaker was considering selling at least a 20 percent stake in the company, but it appears a complete sale of all 33.4 percent is on the table. The debt-laden company is in talks with several Japanese firms about the sale.

Many of Ford’s products are tightly linked with Mazda’s — the companies share platforms for a number of vehicles, and development on a number of projects has been joint. Another Ford subsidiary possibly for sale, Volvo, also shares platforms with Mazda and Ford, making de-integration of next-generation vehicles projects a challenge.

Ford shares fell to a 26-year low of $2.00 on Friday. Ford’s declining auto sales, coupled with an extremely unstable financial market, are to blame. Like GM, Ford has ruled out a bankruptcy filing, said CEO Alan Mulally.

Update: Mazda issued a statement early Saturday seemingly confirming Friday’s rumors. “Nothing has been decided,” Mazda said in a statement received by the Associated Press. “Any important decision will be disclosed.”

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3 comments

  1. […] to sell Mazda – Mazda to buy Mazda??? 17 10 2008 With rumors circulating that Ford is looking at selling Mazda (or at least some of its 33.4% share), it is becoming more apparent that these rumors are in fact […]


  2. […] heading in the complete opposite direction. It appears Volvo is on the way out of Dearborn, but Mazda may be sneaking through the exit first. Recent reports since disputed by Mazda have Ford selling off a portion of its 33.4% stake in the […]


  3. Ford buys shares in Mazda; Ford sells shares in Mazda.

    BMW bought British automaker Rover; BMW sold British automaker Rover.

    Daimler-Benz bought Chrysler; Daimler-Benz sold Chrysler.

    Wake up, people. Hello! Hello! Do you see a pattern here?

    WHY WOULD SUPPOSEDLY INTELLIGENT EXECUTIVES MAKE SUCH DUMB ACQUISITIONS ONLY TO SELL THEM A FEW YEARS LATER?
    (Answer: Because they were just following orders)



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