Mazda Helps Ford Out With Some Cash

Mazda and Ford have had a very close relationship for the last almost 30 years, its a strategic partnership with sharing of vehicle architectures and the like for mostly small cars. While the brand is widely treated as part of Ford’s stable of brands, its never been a wholly owned subsidiary. Instead, Ford chose to acquire enough shares to make for a controlling stake in the Zoom-Zoom brand. What began as a way for Ford to break into Asian markets, is now a crutch to lean on during some very difficult times.

The Japanese automaker is helping its ailing partner out with a cash infusion by buying back 20% of its own stock. This means Ford’s cash position will improve by about $540 million, based on a share price of $1.91. The two automakers are calling this a short-term move that does not affect their overall business strategy of sharing platforms and powertrains. Currently, mid-size and small car platforms are being shared between the two manufacturers.

Given Ford’s dire health, and that they’ve sold off so many other brands recently, the possibility is always there that this move isn’t so temporary.

Source: MSNBC