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Ford Needs Cash, May Sell Off Controlling Stake In Mazda Photo:
 
 
Tony O'Kane | Oct, 13 2008 | 2 Comments

While GM and Chrysler are reportedly on the verge of tying the knot, the other member of the Detroit 'Big Three' is apparently considering going in the opposite direction.

Reports are circulating that Ford may soon sell off its controlling share in Mazda to boost its cash reserves and help insulate it from the economic battering that the American auto industry is currently enduring. Neither Ford nor Mazda are saying much, but current speculation in the Japanese news media says the Blue Oval will still retain a stake in Mazda and won't be severing its ties with the Asian automaker entirely.

Considering that Mazda's ledgers have consistently remained in the black for a number of years now, it would be a smart idea for Ford to hang onto at least some of its 33.4 percent stake in that company. Just how much it decides to keep in its pocket remains to be seen, but considering that the emphasis for now is on generating as much cash as possible, Ford probably isn't too worried about the idea of having to loosen its grip on Mazda.

[The Wall Street Journal]

 
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