Ford, Mazda, Changan Want A Divorce, Remarry Separately
Threesomes can get burdensome to keep together. Didn’t we report in January that Ford, Mazda, and China’s Changan want to end the ménage-a-la-trois and forge their individual joint ventures? It was quickly dismissed as “speculation.” Just because it’s a speculation doesn’t mean that it won’t come true.
Ford, Mazda, and Changan have asked the Chinese government to dissolve their three-way tie up, Reuters says.
As reported months ago, Ford and Mazda plan to engage in separate joint ventures with Changan. Both are looking for the usual 50:50 deal.
“They have submitted a joint proposal to the Chinese government to split up the partnership. Ford’s new JV with Changan will be based in Chongqing, while Mazda’s venture will be based in Nanjing,” said an unnamed source to Reuters.
Also, the denials stopped. Ford and Changan gave a “no comment.” Mazda said to Reuters they are “awaiting regulatory approval for a restructuring move,” but they wouldn’t go into details. Gasgoo even reports that “Mazda told the media that it is true that Mazda and Ford will separate the joint-venture in China.”
Ever since Ford reduced its controlling 33 percent stake in Mazda to 11 percent in 2008 to raise cash, the couple has become increasingly estranged. If an executive from Ford wants to attend a meeting at Mazda, the matters discussed must be carefully vetted beforehand and signed-off in advance. Mazda is rumored to look for another beau, but none has surfaced so far.
Splitsville in the world’s largest auto market is “a good move as a three-way tie could get complicated sometimes. The biggest beneficiary, however, would be Mazda as it could be an equal partner in the new tie,” said Chen Liang, an analyst with Huatai Securities.
The Wall Street Journal has its own version of the three-way divorce. They found “a person close to the situation” who said that “he suspects Changan may be marginally interested in having the application approved. Changan may well prefer the status quo of having its two foreign partners as weak minority stakeholders of the joint venture.”
Understandable. But imagine being in bed with two beauties who scratch each other’s eyes out. Let me tell you: No fun at all.
Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.
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let's keep it a bit less provocative.
Some things.. I just dont know. Ford has its 11%.. and I guess Mazda does decent in the U.S. They are a bit like the "Sporty" brand for Ford.. WITHOUT the HORRIBLE stigma of being a Ford. -- Linc / Merc. -- One reason why I'm stumbling over reasons to buy the new Focus HATCH v the Mazda3 hatch. What is stopping Ford from selling Mazda as Ford in China? Other auto companies have rebadged other vehicles in other markets.. as a placeholder. I could see how it could be difficult for a 3some.. so what "consolidation" is possible FOR that market.