Ford And Mazda To Sign Divorce Papers Tomorrow

Bertel Schmitt
by Bertel Schmitt
ford and mazda to sign divorce papers tomorrow

Mazda is passing the hat around to collect the money to buy out most of Ford’s remaining share, and what looks like half of Japan is chipping in. As many as 10 firms will purchase the Mazda shares that are still held by Ford, says The Nikkei [sub]. Ford plans to cut its 11 percent stake in Mazda to a symbolic 3 percent.

The future Mazda stockholders run the gamut of the Japanese industry: Itochu Corp., Kajima Corp., Mitsui O.S.K. Lines Ltd., and Sumitomo Metal Industries Ltd. will make their contributions. Several Mazda suppliers are also among the likely buyers. The biggest buy will be made by Sumitomo Mitsui Banking Corp. and Sumitomo Corp. There will be no new stockholders, all buyers are existing shareholders that will round out their Mazda holdings.

Ford once owned 33.4 percent of Mazda. They reduced their holdings to 13 percent in 2008, when money was tight. That stake was further diluted to about 11 percent by Mazda issuing shares.

The stock sale is expected to become official on Thursday. Once it is completed, Sumitomo Mitsui Banking will become Mazda’s top shareholder, with a stake of only 4 percent. Ford’s 11 percent share is valued at around $500m. See, if we would make a collection at TTAC, we could easily end up as Mazda’s biggest shareholder. Anybody got $250m?

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  • Rusted Source Rusted Source on Nov 17, 2010

    I believe in Canada, the Mazda3 is poised to unseat the Civic as the number one selling car in Canada. Mazda Canada is also expecting a lot of sales from the new Mazda2 especially in Quebec. Perhaps the picture isn't as rosy in the States, but in other parts of the world I think Mazda is doing well.

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    • PrincipalDan PrincipalDan on Nov 17, 2010

      Zoom, zoom, eh?

  • Abraxas Abraxas on Nov 17, 2010

    In 2011 VW Group and Suzuki will buy a controlling stake in Mazda ( 33.4 % ) or Suzuki will merge with Mazda . Suzuki and Mazda have a complementary line-up of products and complementary markets . They also have many common japanese shareholders . Any of these two scenarios would make Ferdinand Karl Piëch ( ) a very happy man .

    • PrincipalDan PrincipalDan on Nov 17, 2010

      I actually like that idea too. Suzuki was a pretty sporty car company before they walked through the wrong dark alley that one drunken night in college and GM lunged out of the shadows at them. Two former jilted Japanese lovers who hooked up with American car companies. It's almost poetic.

  • Sajeev Mehta Sajeev Mehta on Nov 17, 2010

    Am I the only person who sees the irony in the photo? Panther love uber alles, yo.

  • Niky Niky on Nov 17, 2010

    I have faith that Mazda will pull through. A joint venture with Suzuki would be good, as they can provide platforms for Suzy's bigger cars and they and Suzy can share the small car market... IMHO, the Mazda2 is a significantly better car than the Suzuki Swift. - It's a sad end to a good partnership... but maybe it just had to be. Working with Ford's platforms has made most larger Mazdas obscenely heavy. Not quite as heavy as their Ford counterparts, but what they've had to cut out to achieve weight savings was stuff that's noticeable to the buyer... which can't have helped sales. I feel sorry for Mazda that the new 2 has not garnered the huge response that the Fiesta has... because, after having driven both back to back... Mazda has it right. Simplification. Lightening. The Mazda2 gives up very little in refinement to the Fiesta (which is arguably the most refined in its class), yet gains so much in terms of spriteliness and performance by going with smaller engines and a lighter curb weight. Wouldn't be surprised if you could eke out better fuel economy in the city, as well.