FORD To Sell MAZDA ?

csv8 · 23-10-2008, 10:22 PM

While GM is being swamped with the persistent rumors surrounding the addition/dissolution of Chrysler, Ford's rumor mill has been heading in the complete opposite direction. It appears Volvo is on the way out of Dearborn, but Mazda may be sneaking through the exit first. Recent reports since disputed by Mazda have Ford selling off a portion of its 33.4% stake in the Japanese automaker, which means the Blue Oval would lose majority ownership status. The Nikkei daily in Japan has been all over the Ford/Mazda story, and the latest news involves selling 20% of Mazda to 20 Japanese firms including some insurance companies, leaving Ford with a stake of around 13%.

Ford is allegedly unwilling to sell the shares to its competition, so splitting the Mazda shares in 20 small chunks makes picking up all the shares difficult. Besides five insurance companies, parts maker Denso, steel companies, and trading companies are also rumored to be taking part in the purchase. The price of 1% Mazda ownership is in the neighborhood of $40 million, and the total sale could approach $1 billion. Japanese media is reporting that any deal could be announced next month, and neither Mazda or Ford are saying a word at this point.

uranium_death · 23-10-2008, 11:11 PM

Although Ford selling off a portion/all of their share in Mazda will generate funds, won't it only be a short term measure?

I know Ford really need the funds NOW, but long term, with Mazda doing ok, I would have liked to see Ford keep it.

XR6_190 · 23-10-2008, 11:15 PM

Why would Ford want to be selling off what is most likely it's most profitable arm?

Hunter · 24-10-2008, 12:00 AM

Quote:

Originally Posted by XR6_190

Why would Ford want to be selling off what is most likely it's most profitable arm?

Because it has serious cash flow problems. There's no point in keeping a profitable company if the parent company doesn't have enough money to keep the day to day operations going. In some senses the best thing Ford could do is sell Mazda and use the income generated by the sale to get themselves out of trouble.

EgoFG · 24-10-2008, 11:30 AM

lets pretend I have cancer

It is in my left leg, and it is bad.
The tumor, as it grows is pulling all the nutrients out of my body, and I am loosing too much weight.

I should then cut off my right arm ?

While I understand the economics in the decision, it is not in the companies long term interest to sell a profitable part, it should remove the thing that is broken.

This is very hard for an american company to grasp - especially when it is the american business that if flawed.

Ford, and GM should both look at rationalising their american presence.
Ford produces the same car, in different spec levels under different brands (Ford - Crown Vic, Mercury - Grand Marquis, Lincoln - Town Car --- as an historic example)

GM have a similar policy.

Ford US should consider rationalisation of its brands before selling profitable business ventures such as Mazda and Jaguar ... oops too late

Bossxr8 · 24-10-2008, 12:13 PM

If it happens it will be another DUMB decision by a company that seems to be good at making them.

:

Mazda is a cash cow. If they sell of a share of it the profits Mazda bring in would probably add up more than the sale price in a year or 2, making future profits smaller. Thats always Fords problem, not looking far enough ahead, its all about what's happening tommorrow, not next year or the year after. No wonder they are going so far down the tubes. Detroit HQ are retards.

whales · 24-10-2008, 12:20 PM

Ford would better off selling Mazda cars not their share in the company. Ford atpresent can't build a decent or even sell their own branded vehicles. At least there is a market for Mazda cars.

Hunter · 24-10-2008, 12:33 PM

Quote:

Originally Posted by whales

Ford would better off selling Mazda cars not their share in the company. Ford atpresent can't build a decent or even sell their own branded vehicles. At least there is a market for Mazda cars.

Err but the Focus and the Mazda 3are, aside from a couple of minor differences and body shape, the same car... The problem is that the Aussie Focus is built in bloody South Africa and then there's the whole Ford dealer issue...

Quote:

Originally Posted by Bossxr8

If it happens it will be another DUMB decision by a company that seems to be good at making them.

:

Mazda is a cash cow. If they sell of a share of it the profits Mazda bring in would probably add up more than the sale price in a year or 2, making future profits smaller. Thats always Fords problem, not looking far enough ahead, its all about what's happening tommorrow, not next year or the year after. No wonder they are going so far down the tubes. Detroit HQ are retards.

As I said before, Mazda DOES make money for Ford BUT Ford does not have enough money to keep afloat in the short term... they can keep Mazda all along and it may well make them more money down the track but if they don't have the cash flow to survive until then they won't be around to see the profits! In other words, not selling Mazda would be pointless if Ford won't live long enough to reap the rewards... better off selling SOME of Mazda while it is doing well then keep a small part of it to keep a share of the profits down the track...

What is the alternative? Do nothing and go broke?

outback_ute · 24-10-2008, 12:43 PM

EgoFG, not a bad analogy, but I'd say the cancer should be in the chest - can't just cut that off. Ie can't just stop selling cars in the US, not only would it be a bitter pill to swallow, the cost to do so would be prohibitive.

**Fordman1** · 24-10-2008, 01:03 PM

Mazda will outsell Ford in Australia next year.

Book-mark it !

The brand has a problem here, Mazda doesn't.

It's a shame Ford want to offload a brand that is successful.

Dave_au · 24-10-2008, 03:15 PM

Guys it's pretty simple - as Mazda is making cash inflows, it would be one of the few non-core business assets on Ford's books that would hold any value. The cancer analogy doesn't work in business - no other company wants to buy a dog.

Wally · 24-10-2008, 05:31 PM

http://www.autoblog.com/2008/10/18/f...s-to-insurers/

BlackLS · 24-10-2008, 05:35 PM

Same reason why Land and Range Rover were sold off, as well as Aston Martin.

Wretched · 24-10-2008, 06:23 PM

Ford is only selling 20% of their 33% stake, they will still have a share.
They need money now, if they don't then there isn't going to be Ford (not that I think they will survive anyway).

Rodp · 24-10-2008, 06:54 PM

The cancer analogy isn't a good one here.

I obviously don't know the financials... and for forum members to claim that Ford are stupid to sell off a portion of their share in Mazda is short sighted (I suspect that an educated group of people with all the facts that make up Ford are in a better position than someone who has an internet connection). It may well be a profit arm of Ford, but for them to contemplate selling it off obviously shows that Ford are in dire straights and need cash TODAY.

A better analogy would be Mazda sitting on the arm of someone and inside that someone is a bomb in their stomach. If it blows, doesn't matter what's on the arm.

**Fordman1** · 24-10-2008, 07:44 PM

Quote:

Originally Posted by Rodp

The cancer analogy isn't a good one here.

I obviously don't know the financials... and for forum members to claim that Ford are stupid to sell off a portion of their share in Mazda is short sighted (I suspect that an educated group of people with all the facts that make up Ford are in a better position than someone who has an internet connection). It may well be a profit arm of Ford, but for them to contemplate selling it off obviously shows that Ford are in dire straights and need cash TODAY.

A better analogy would be Mazda sitting on the arm of someone and inside that someone is a bomb in their stomach. If it blows, doesn't matter what's on the arm.

It seems Ford may have cash flow problems. It maybe quite serious.

vztrt · 24-10-2008, 08:00 PM

Quote:

Originally Posted by Rodp

(I suspect that an educated group of people with all the facts that make up Ford are in a better position than someone who has an internet connection).

If they were sooooo smart, they wouldn't be in the position they are now.
Unfortunately the big 3 (GM, Ford and Chrysler) dont really think that far ahead, or set their business up to change if there is a major shift in the market.
The Japanese on the other hand are quite good at it. But then again the two countries do have different cultures that would dictate this.

Rodp · 24-10-2008, 08:04 PM

Quote:

Originally Posted by vztrt

If they were sooooo smart, they wouldn't be in the position they are now.
Unfortunately the big 3 (GM, Ford and Chrysler) dont really think that far ahead, or set their business up to change if there is a major shift in the market.
The Japanese on the other hand are quite good at it. But then again the two countries do have different cultures that would dictate this.

I didn't say they were smart but I'll not put myself in the position of thinking I know better than those that know all the facts.

Perhaps they did think that far ahead, but they got it wrong...? Doesn't make them stupid, just makes them wrong.

vztrt · 24-10-2008, 08:50 PM

Quote:

Originally Posted by Rodp

Perhaps they did think that far ahead, but they got it wrong...? Doesn't make them stupid, just makes them wrong.

Unfortunately from my experience Ford doesn't think that far ahead.

snakeoil · 24-10-2008, 09:06 PM

The brand has a problem here, Mazda doesn't.

Mazda has had a history of huge problems the early rotarys nearly sent them broke
The mazda corporation fell into Fords hands because of a sub prime type thing which wiped out Japan in the late eighties>Japan still has not recovered
Except Toyota,Subaru,Honda all of the Japanese manufacturers fell over

the Koreans .............much the same KIA DAI WOO fell over
I drove recently a ( Dark side ) Statesman Grange and rate it as one of the 10 best cars I have ever driven.So if we are going to move forward and demand what we really want cash talks.Words dont

Cheers

EgoFG · 25-10-2008, 09:13 AM

Quote:

Originally Posted by vztrt

Unfortunately the big 3 (GM, Ford and Chrysler) dont really think that far ahead

Yeah, What he said

The trouble is, that now they have left themselves without the luxury of being able to look to the future.

So Sell, Sell, Sell it is.

Shame -

IMHO US international companies are far too shortsighted, and too US-centric.

irlewy86 · 25-10-2008, 09:36 PM

Quote:

Originally Posted by EgoFG

Yeah, What he said

The trouble is, that now they have left themselves without the luxury of being able to look to the future.

So Sell, Sell, Sell it is.

Shame -

IMHO US international companies are far too shortsighted, and too US-centric.

The US brands are US-centric because thats where the market is.

To say Ford have sat on their hands and couldn't see this happening is nonsense, the writing has been on the wall and every blind freddy has seen the trouble. They sold LR/Jag for cash, Aston Martin and will now shed some more assests to maintain they core business "the blue oval".

They aren't docotors treating a cancer patient. They're accountants saving a business.

SM1DY · 25-10-2008, 11:28 PM

$40 million for 1% hmm......I'll pass

EgoFG · 26-10-2008, 04:09 PM

Quote:

Originally Posted by irlewy86

They're accountants saving a business.

Although I know I am taking you out of context ...

This is the problem I am talking about - accountants managing by this year's bottom line, rather than ongoing profitability - this has been the case for far too long - supported by professional executives motivated only by this year's bonuses ... But I dont feel like talking from that soap box just now.

And I like the fact that you took my "US international companies" and made it "US Brands"
That is far too true - Toyota has opted to become an international company. Ford and GM are much more simply US Brands.

JAZSXY · 26-10-2008, 04:23 PM

A simple rule of life.
What goes up must come down. Resources, stocks etc have all crashed. The economic growth has burst its bubble and everyone is trying to secure up cash before the worst hits (Expected next year) which is making everything even worse.

What is happening around the world, jobs lost, economies collapsing, business's going bust all comes down to one word...Greed.

vztrt · 17-11-2010, 09:47 PM

http://www.caradvice.com.au/91568/fo...t-mazda-share/

Quote:

Ford to sell up to 8 percent of its 11 percent Mazda share
By Brett Davis | November 17th, 2010

We reported a couple of weeks ago that Mazda shares owned by Ford could be up for sale. Earlier reports today confirm Ford is looking to sell most of its remaining stock in Mazda Motors Japan, and even has a number of buyers lined up to take a deal.

Nikkei business daily reported a month ago that Ford was looking to sell most of its 11 percent share in Mazda, but now says Ford has up to 10 companies ready to buy as much as 70 percent of its stake, leaving Ford owning just three percent. The Nikkei report says Itochu and Sumitomo companies are said to buy three percent each at a price of $US119.7 million ($122.5 million).

Sumitomo Mitsui Banking Corporation, Mazda’s main lender, already holds 2.9 percent share and is said to buy more, while the rest of the shares will be sold to some of Mazda’s components and parts suppliers.

Ford is hoping that selling the shares will give the company more flexibility in the Chinese market, so it can sell more models and compete more freely in certain segments.