Ford's Financial Woes Affecting Mazda Relationship
11-18-2008 | 10:21 AM
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From: Under The Bridge
Ford's Financial Woes Affecting Mazda Relationship
http://www.lansingstatejournal.com/a...WS03/811180340
DEARBORN - Ford Motor Co. is slashing its stake in Japan's Mazda Motor Corp. by nearly two-thirds, joining other struggling U.S. automakers in a fire-sale of prized assets to stay afloat.
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Ford, which owns 33.4 percent of Mazda, will sell about a 20 percent stake, the companies said in separate statements.
The sale would net Dearborn-based Ford $540 million, based on Mazda's closing price Tuesday. That would be barely one quarter of what a 20 percent stake in the Japanese automaker was worth one year ago.
Hit by a slump in the U.S., Ford is burning through cash reserves and, along with General Motors Corp. and Cerberus Capital Management LP's Chrysler LLC, is seeking a $25 billion government lifeline to weather the deepening economic crisis. On Monday, Detroit-based GM said it would sell its remaining 3.02 percent stake in Japan's Suzuki Motor Corp. for $230 million.
Ford racked up losses of $8.7 billion in the second quarter, its worst result ever, and has used up $11 billion of a cash stockpile in the past year. The share sale was "in line with Ford's plan to strengthen its balance sheet," it said.
Over the last decade, Ford helped engineer a turnaround at once-struggling Mazda, sending executives and sharing technology and auto parts to cut costs.
Ford and Mazda, which makes the RX-8 sports car and Miata roadster, said they will maintain their strategic relationship. Ford said it will remain Mazda's largest shareholder and they will continue to share core design platforms and key components.
Mazda said it will buy up to 6.87 percent of its own shares for as much as 17.9 $185.3 million.
DEARBORN - Ford Motor Co. is slashing its stake in Japan's Mazda Motor Corp. by nearly two-thirds, joining other struggling U.S. automakers in a fire-sale of prized assets to stay afloat.
Advertisement
Ford, which owns 33.4 percent of Mazda, will sell about a 20 percent stake, the companies said in separate statements.
The sale would net Dearborn-based Ford $540 million, based on Mazda's closing price Tuesday. That would be barely one quarter of what a 20 percent stake in the Japanese automaker was worth one year ago.
Hit by a slump in the U.S., Ford is burning through cash reserves and, along with General Motors Corp. and Cerberus Capital Management LP's Chrysler LLC, is seeking a $25 billion government lifeline to weather the deepening economic crisis. On Monday, Detroit-based GM said it would sell its remaining 3.02 percent stake in Japan's Suzuki Motor Corp. for $230 million.
Ford racked up losses of $8.7 billion in the second quarter, its worst result ever, and has used up $11 billion of a cash stockpile in the past year. The share sale was "in line with Ford's plan to strengthen its balance sheet," it said.
Over the last decade, Ford helped engineer a turnaround at once-struggling Mazda, sending executives and sharing technology and auto parts to cut costs.
Ford and Mazda, which makes the RX-8 sports car and Miata roadster, said they will maintain their strategic relationship. Ford said it will remain Mazda's largest shareholder and they will continue to share core design platforms and key components.
Mazda said it will buy up to 6.87 percent of its own shares for as much as 17.9 $185.3 million.
11-18-2008 | 11:06 AM
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From: Buddhist Monastery, High Himalaya Mtns. of Tibet
There is already a discussion underway on this.
https://www.rx8club.com/general-automotive-49/ford-sells-portion-its-stake-mazda-160849/
https://www.rx8club.com/general-automotive-49/ford-sells-portion-its-stake-mazda-160849/
11-18-2008 | 01:01 PM
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From: Under The Bridge
my mistake for searching the NEWS section of the board in regards to the NEWS. guess i should have known that a NEWS thread about mazda would be found in a GENERAL AUTOMOTIVE sub-forum.
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