Ford breaks bond with Mazda, sells its stake in the company
News rolling out from the East reports that Ford Motors is planning to cut its bonds with The Japanese auto maker, Mazda Motor Corp and sell its stake in the latter which would mean that Ford will now hold 3 per cent in the Japanese company as opposed to the 11 per cent it did previously. Though the decision has not been voiced publicly, it is speculated that Ford's mere 11 per cent share in Mazda that has trickled down to 3 might affect the market value of the share in the latter. The move by Ford comes as a surprise especially after the two companies declared amicable relations a while ago.
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However some are of the opinion that while Mazda might be on a lookout for partner to grow in the current competitive environment, it may meanwhile capitalize on its own technology avoiding takeovers by companies overseas. News doing rounds in the auto industry suggest that Japanese business partners of Mazda and Sumitomo Corp, a trading house are in discussions with Mazda to buy out shares being sold by Ford. The sale will probably take shape by the end of this year, sources reveal.
It is worthwhile mentioning that Ford and Mazda have shared assembly plants, platforms and motors throughout the functioning of both the companies. Mazda Miata sold currently is powered by the Ford Duratec motor. On the other hand, the compact Ford Courier pick up truck was actually a Mazda B Series truck. The two models are only the tip of the iceberg in context of what the two companies shared.
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