...what changes do you think are in store for Mazda? Considering that Mazda is a comparatively small company, do you think that they will seek a new financial relationship with a larger company or could it be that their size may actually work to their advantage given the current global economy?

 

What do you consider a minority stake? If you mean ownership of less than 50%, then Ford has always been a minority stake holder as they've never even approached 50% ownership of Mazda (I believe because Japanese laws prohibit foreign ownership of their companies). If you mean the single largest share holder, then, unless I'm mistaken, Ford still maintains that title. Yes, no?

 

i believe that they hold less stock than the CEO now, as a matter of fact. i may be wrong (first time for everything), but i think that was the final deal.

i think that mazda will continue to stay a fairly small company for a while. they will keep growing, little by little, but it would take some big moves to make them large.

 

Hmmm, IIRC, the reports from last fall suggested that Ford would drop its stake in Mazda to 13.4%, still a hefty percentage of a company the size of Mazda. To be perfectly honest, I would be very surprised if the Mazda CEO owned anywhere near that much stock. That said, given that I have no numbers that point either way, I too may well be wrong.

 

True, but they no longer have a controlling interest. But I guess they still have a partnership although there may be less migration of executives between the two companies. I guess we'll continue to see products that share design technologies and fetures for some time to come.

 

I don't think there will be many changes. Both companies will continue to develop new product and will continue to work on joint ventures/collaborate where it makes financial sense. Remember Ford/Mazda have been working together for over 30 years. There is no Ford influence on the overall design appearance of Mazda product, and they have always worked their business as a separate entity. (There are those that like to blame Ford for anything "bad" on/about their Mazda's, but it's purely conspiracy theory type stuff IMO.)

Ownership of Mazda by Ford went from 33.4% to around 13%. Each % of Mazda is worth something like $40 Million. The stock was split up and purchased by a number of different companies with strategic relationships with Mazda. (As is typical in Japanese business) This drummed up much needed capital $$$, but both companies benefit from the relationship, so I don't see much changing in how the companies interact.

 

Yea I don't think anything much will change either. Ford and Mazda both save lots of money by developing and sharing car platforms together for a few decades. Example, Mazda3, Focus, Volvo S40 share same platform. Also current Ford Fusion, Mercury Milan and Lincoln Zephyr r based on Mazda6 platform as far as I know.

It is good that Mazda is a small car company at this recession, cuz it didn't really hit Mazda real bad unlike GM and Chrysler. Also FYI, Toyota got hit hard too and already have requested $2 Billion USD ($200 billion Japanese Yen) loan from Japanese Government, that's right, u heard it right. Even the mighty Toyota need help now. Toyota also have cut down the entire work force pay wages as well. See how being too big can hurt a car company during recession no matter how good the company is. Also, Nissan is considering doing the same as Toyota as well. Didn't hear anything about Honda, so I guess they must be ok.

However, if Mazda keep going at the rate that it has been going in the recent 5-6 years, Mazda might get big in 10-15 years. For all I know, Mazda3 sell as many units as Toyota Corolla and Honda Civic now. Not just that, it could be just me, but I have been seeing a lot more brand new Mazda6 than Camry or Accord lately at least where I live at this recession. Also Mazda CX-7 and CX-9 been selling like water too. Not to mention the already popular Mazda MX-5 Miata. Seens to me Mazda is on track to becoming a big car company lately. It might be just the spur the moment thing or could be for real. We don't know. Only time will tell I guess.

 

Keep in mind that Ford has never had a controlling interest in Mazda. A large interest, yes, a controlling interest, no.

 

Even Honda has been hit hard. The global auto industry sales volume across the board is down approximately 40%. Toyota, Honda, Nissan, etc sell more cars in the US than they do in Japan, but even the Japan domestic car industry is down almost 40%. Cars are the 2nd most expensive purchase that most people make, and new cars are a luxury item (you can always buy something a few years old for much less $$$ that gets the job done.) Every company in the industry is working to get their production volumes in line with demand. Demand for new cars in 2007 was approximately 15-16Million units, 2008 went down to just over 13 Million (with most of the drop-off in the 3rd and 4th quarter), and predictions for 2009 are in the 9-11M range. Even at 16M units, there was excess production capacity in the industry. It takes time to reduce the size of any company.

Every country around the world with an auto industry is pumping stimulus money into them to maintain their manufacturing base. It's a critical part of any domestic economy. Difference being that here in the US it's being done with loans, elsewhere in the world the companies are being given money that does not need to be paid back.

 

In America it takes a 50+% interest, but I have heard that things are different in Japan and that anything over 31% is considered a controlling interest. Was this false? I really don't know, so I'm asking.