Looks like Ford has wizened up to what millions of Americans are doing now, selling their possessions off for money to just exist. How interesting it is that when companies are desperate and beg for money, they still seem to find a way to get the money.
Ford had burnt through $7.7 billion in the latest quarter. It, along with GM and Chrysler, were lobbying Congress for aid.
Ford Motor is selling 20 percent of its 33.4 percent stake in Mazda for Y52Billion but they will still remain the Japanese carmaker’s biggest shareholder however, its reduced interest will give it less control over the company. This means, many of whose current top executives on on loan from Ford. Two of three board members from Ford are going to leave, Mazda said, and Takashi Yamanouchi, executive vice president, is going to become its new president and CEO. Hisakazu Imaki, the current chief executive, will become chairman.
Mazda is also buying shares, 6.87 percent in off-hours trading on Wednesday morning for Y17.9 billion or Y184 each, the closing price on Tuesday. Mazda said the two companies will continue their relationship.
The remaining stock will be probably picked up by a group of Japanese parts suppliers, trading companies and casualty insurers, who will divide Ford’s interest into segments of 1 or 2 percent each.
Ford President and CEO Alan Mulally said “This agreement allows Ford to raise capital that will help fund out 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.” Mulally added, “Ford will continue to focus on the Ford brand worldwide and deliver the products our customers really want and value.”
Ford help invent Mazda in 1979 and had owned a steak in Japan’s fifth-largest automaker since then. What is interesting to note is that Ford rescued Mazda from bankruptcy 12 years ago.