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Should Ford Sell It's Portion Of Mazda To Stay Afloat?

Agent009 submitted on 8/5/2008 Official Bell & Ross Timestamp: 8:41:35 AM

21 user comments | Category: Misc News | Source: | SOURCE: www.businessweek.com

Just a week after Ford's disastrous quarterly earnings announcement on July 24, Mazda, the Japanese company one-third owned by the ailing U.

S. automaker, on July 31 once again highlighted how much better it is faring than its larger partner.

In a tough environment for all automakers, Mazda's operating earnings slid an expected 12%, to $265 million, but that was largely explained by a sharply stronger yen. Perhaps more important, the company said it still expects net earnings of $750 million during the current financial year. Despite weaker U.S. sales in July, Mazda plans to sell 1.48 million cars this year, up 9% from 2007.
 



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Should Ford Sell It's Portion Of Mazda To Stay Afloat?

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Agent009

"If everything seems under control, you're just not going fast enough."

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User Comments

S30GTR

ford should keep mazda and sell ford.

— S30GTR (View Profile)

Posted on 8/5/2008 8:52:01 AM | reply to this comment | Votes: 19   

Kaniver

lol +1

— Kaniver (View Profile)

Posted on 8/5/2008 9:13:23 AM | | Votes: 8   

johnnyb

No kidding, Mazda seems to be the only thing going for them.

— johnnyb (View Profile)

Posted on 8/5/2008 9:28:08 AM | | Votes: 8   

91z4me

Johnny, Ford Europe is doing very well, Ford Australia is doing OK. Really only the NA market is doing poorly. Ford has a great chance at being profitable within a year.

— 91z4me (View Profile)

Posted on 8/5/2008 10:56:18 AM | | Votes: 5   

EnnNorak

Ford should get rid of 3-valve-per-cylinder engines and make proper DOHC 4-valve-per cylinder engines standard across the board. They should also clone the big comfy power driver's seat found in the Passat or, better still, clone the Mercedes S-class front seats. I am still pissed at Ford for all the rusty cars they made in the past.

— EnnNorak (View Profile)

Posted on 8/5/2008 1:26:25 PM | | Votes: 1   

WorldofLuxury

lol...just to make things clear
Merc was also using only 3 valves per cylinder until recently.
Of course, that still doesn't mean that Ford shouldn't try to be better considering how big of a company they are despite the terrible debt they've fallen in.

— WorldofLuxury (View Profile)

Posted on 8/5/2008 5:00:22 PM | | Votes: 1   

1evlaudi

+1
Sell Ford

— 1evlaudi (View Profile)

Posted on 8/6/2008 11:55:38 PM | | Votes: 1   

EnnNorak

You are correct WorldofLuxury and I am annoyed at MB for allowing the Maybach to continue with 3-valve-per-cylinder engines. I am also bent out of shape because MB is still using inherently-out-of-balance 90-degree V6 engines designs.

— EnnNorak (View Profile)

Posted on 8/7/2008 6:53:33 PM | | Votes: 1   

ILikeLambo

mazda are the one thing thats helping them stay alive

— ILikeLambo (View Profile)

Posted on 8/5/2008 9:07:19 AM | reply to this comment | Votes: 5   

mpwr

Only if there getting there advice from Dr Kevorkian would this make sense.

— mpwr (View Profile)

Posted on 8/5/2008 9:21:24 AM | reply to this comment | Votes: 6   

Htay7500

Its funny how a division of a large company sells so better than the company thats owned by them. Ford has a long way to go...

— Htay7500 (View Profile)

Posted on 8/5/2008 10:34:32 AM | reply to this comment | Votes: 1   

91z4me

Mazda isn't really a part of Ford. They are partially owned (around 1/3). They make decisions without Ford all the time (if not the new 3 would be on the C1 Focus platform).

— 91z4me (View Profile)

Posted on 8/5/2008 10:58:21 AM | | Votes: 0   

ktu01

Mazda has been doing well also because it's been a much more focused brand than Ford. Mazda understands its brands and knows the customers they want to target, focusing its efforts and resources to creating an entire line of vehicles that contributes to a strong brand image (except the Tribute haha).

Meanwhile, it seems like Ford has been a bit more scattered. They've been trying to find temporary solutions to issues, including cutting costs and launching a separate Focus, creating a new underpowered Ford 500 (which confused people as to where this model came from), then renamed the 500 back to a Taurus (then confused people even more).... I think once they focus, consolidate their resources, leverage Euro resources, and start pushing out consistent models that speak to their brand... Ford will do a lot better.

— ktu01 (View Profile)

Posted on 8/6/2008 2:28:53 AM | | Votes: 1   

Maverick2020

15 years ago, Mazda was the bastard step child at FoMoCo. But somewhere along the way Mazda found its Mojo.

Today Mazda is arguably a stronger, better branded, more focused car company than the Ford brand is.

I say that Ford has a lot to learn from Mazda. And considering that Mazda has produced some pretty good platforms, Ford would be foolish to sell it.

— Maverick2020 (View Profile)

Posted on 8/5/2008 10:35:32 AM | reply to this comment | Votes: 4   

holmstar

Does Mazda control the entire remaining 2/3rds?

— holmstar (View Profile)

Posted on 8/5/2008 10:36:50 AM | reply to this comment | Votes: 1   

NItePhire

They should close Mercury before doing this. Mercury really doesn't contribute much to their bottom line. Mazda has was to much to offer to sell it right now.

— NItePhire (View Profile)

Posted on 8/5/2008 11:43:02 AM | reply to this comment | Votes: 4   

Audiphile

Dear Ford Executives,

Hang on to Mazda, Volvo and Ford of Europe and Australia, you fools! They are your salvation. Get your North American house in order.

— Audiphile (View Profile)

Posted on 8/5/2008 11:44:35 AM | reply to this comment | Votes: 4   

ktu01

Agreed - Mazda has been doing well and probably will continue to do well they way they are going, so Ford would be making a terrible mistake if they were to sell them.

What Ford should do is consider consolidating Lincoln and Mercury, and focus their R&D efforts on one brand. Bringing over European models (focus, mondeo) would likely help US sales as well.

— ktu01 (View Profile)

Posted on 8/6/2008 2:23:34 AM | reply to this comment | Votes: 2   

mercuryguy

Yep, I Looked at the New Mazda 6 today. You would think with all the hype, that this would be a serious car. Not. The interior looks like yet another econobox. The Headlights and front fenders are nice, and the best part of this car. But the Lincoln MKS blows this car right out of the water. Yes, this new Mazda 6 would be a good replacement for the Ford Taurus or Ford Focus, but even the Sable has a nicer interior than the Mazda 6's black plastic interior and the Sable at least has some wood and a brushed front waterfall grille. Mazda's grille is very generic, the sculptured wheel arches do help.

The Mazda CX-9 is nice, but the Lincoln MKX is far nicer, and both vehicles share the same platform and Engine. The Mazda 9 is longer though, with more tailgate room, but the Lincoln ride and handling is dialed-I and far better.

— mercuryguy (View Profile)

Posted on 8/6/2008 4:24:50 PM | reply to this comment | Votes: 1   

mercuryguy

I'd like to see Ford transition Mercury to Volvo. Mecury owners like a larger vehicle with a higher trim level. the Volvo Wagons seem to capture this well with thier Luxury Wagons like the CX60. This would make an ideal business car. A Cigar smoking guy or a Soccer Mom would be at home in this car, and people at the office would still consider the CX60 as a serious business car. This car is also well dressed for dinner.

Ford needs to make the Volvo namplate more accesable to Ford/Lincoln shoppers by offering Ford Finncing and incentives that bring Ford shoppers to the showroom. Ford needs to Americanise the dealship without Americanizing the Volvo car. Then they will have a hit.

— mercuryguy (View Profile)

Posted on 8/6/2008 4:31:47 PM | reply to this comment | Votes: 1   

1evlaudi

I sure hope not, Mazda is actually the only brand that makes sense and also that has a nice line-up right now... who knows what would happen if they were to sell it?

— 1evlaudi (View Profile)

Posted on 8/6/2008 11:54:58 PM | reply to this comment | Votes: 1   

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