In an effort to raise cash and prop up its faltering balance sheets, Ford Motor Company has sold 20% of its stake in Mazda, netting the blue oval boys $540 Million. This follows on the heals of GM selling of 3% of their stake in Suzuki (netting the General $230 Million).
According to statements from both Ford and Mazda, this will not effect their ongoing joint ventures, as well as the sharing of platforms and powertrains. That makes sense for both entities. especially for Ford. what will be needed in the near future will be smaller, more fuel efficient engines, which Mazda seems to have by the boxcar load.
Ford President and CEO Alan Mulally said, This agreement allows Ford to raise capital that will help fund our product-led transformation, and at the same time, allows Ford and Mazda to continue our successful strategic relationship in the best interest of both companies. Ford will continue to focus on the Ford brand worldwide and deliver the products our customers really want and value.”
And Mazda Chairman, President and CEO Hisakazu Imaki added, “The sale of Mazda shares by our partner, Ford, will not result in any change in Mazda’s strategic direction and we will continue to accelerate our product-led brand improvement and cost innovation initiatives. We will continue our strategic relationship through our ongoing joint ventures with Ford, as well as the sharing of platforms and powertrains.”
Source: CarScoop
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