http://www.autoblog.com/2008/08/04/a...raise-capital/

 

Hmm,where would they build the 197 Mustangs? Wouldn't cost a ton of money to convert another plant?

 

BAD IDEA!

 

As usual, the ANALysts like to feel each other out.
Pay no attention to them.

 

Well, strictly speaking, they're not selling Mazda, merely their stake in it. Japanese law does not allow a foreign multinational to have controlling ownership in a domestic corporation.

The article is misleading. Though Ford is the largest voice and influence in Mazda (and the liaison makes sense), it does not strictly control all of Mazda's decisions.

 

HAHA its funny cause its true. In any event, the sale of Mazda would be most ridiculous thing for Ford right now. Lets just hope that this never becomes the case and Ford continues to do what is needed for their restructuring.

 

Ford owns the Flatrock plant, not Mazda.

Yes and no. Japanese law does state what you claim but at one juncture the Japanese government was apparently willing to allow Ford to purchase Mazda outright with the deal breaker being that Ford would have to take on Mazda's massive debt. Ultimately the deal they appear to have been working under for some time now is that Ford effectively does control Mazda as though it were wholly owned but has a permanent baby-sitter from Mazda's biggest note holder, the Bank of Hiroshima, to make sure they keep the brand sufficiently Japanese and sufficiently successful. I think that last aspect of the deal has led to some colorful attempts to make it appear as though Mazda is more independent than they actually are, but that is another story.

All of that said, if Mazda is going to be little more than a Japanese Mercury I say Ford should sell their stake in the brand, particularly if it will raise enough in the way of funds to support a program or two for Ford's core brands.

 

Not going to happen . . .