Ford Selling Mazda Stakes. Not Happening Yet
After speculation on a GM-Chrysler merger, heads have turned to Ford who may be up for salvation by selling part of its stake in Mazda. The Oval, who controls one-third of the Japanese fourth largest car-maker, has reached a critical situation as well, with its stock price having nearly hit rock bottom, the lowest ever registered in the past 25 years.
On the verge of undoing history, the great Ford is facing hard-times but with all the registered losses which are only a thin layer of capital from scraping the pot of gold's bottom, management insists everything is fine. Ford CEO Alan Mullaly recently issued a re-assuring statement saying that Ford was not running out of cash. However, he also said, “Cash is really, really important, so we are managing that very carefully" hinting at the set-backs the company is confronting with.
In addition, Mazda officials shrugged on Saturday by saying, "Nothing has been decided" and adding “Any important decision will be disclosed." Whether Ford will act in such way remains to been seen since the Oval has been rolling with Mazda since 1979 when it bought a 25% stake in the company.
Ford's involvement shielded Mazda from trouble as it shared a lot of technology with the company and invested plenty of work and development to boost it to where it stands today. Adding to the responses so far, a comment coming from Dearborn, Michigan-based mother company clearly states Ford's position on the matter. "We do not want to comment on speculation. Our relationship with Mazda has not changed.”