Something goin' down with Mazda & Ford?

[JM]

I got a suspicious email today that implied something was going down with Mazda & Ford. Anyone got more details?

 

Basically, Mazda is becoming "increasingly significant" to Ford.

 

I thought it was weird because I didn't think Mazda contributed that much to Ford's bottom line and I wouldn't think an email like this would be released just because platforms are being shared. Plus this isn't a typical move because Ford is only a majority stakeholder in Mazda.

 

Editted because Intrepidatious got me scared...

Edited September 9, 2006 by JM

[waymondospiff]

Part of the whole Ford "turn around" rumours have included talk of Mazda. Some have said selling off the Mazda stake for money...this would probably include some kind of long-term development agreement seeing as how closely linked Ford & Mazda development is; Mazda doesn't have a V6 engine without Ford today, and Ford N.A. doesn't have a I-4 without Mazda.

 

Other rumours have talked about Ford increasing their stake in Mazda up to buying 100% of Mazda and making it another subsidiary. This development would probably increase Ford's reliance on Mazda for development. Perhaps turning ALL Ford of N.A. small car R&D over to Mazda. The leading proponent of this is a former Ford exec. who issued a book recently.

 

Other possibilities would simply be an agreement to turn over additional development responsibilities to Mazda or a closer link up of Ford & Mazda R&D. Perhaps an announcement of a new vehicle or platform developed by Mazda for Ford? Maybe an announcement of hydrogen rotaries by Mazda?

 

Another big announcement could involve plants. The Mazda6 is limited in capacity by the Mustang at Flat Rock (AAI). It's okay today when the MZ6 doesn't sell that well, but the next generation MZ6 is out in the spring and will (hopefully) need more capacity. Also Mazda could use a N.A. plant to build the MZ3. Perhaps a take-over of a closing Ford plant by Mazda?

 

So, there are the recent rumours about Mazda. I haven't seen or read anything firm yet. Anything else you could reveal from your email?

 

Scott

[Harley Lover]

This is intriguing, but I'm not sure I get the point, unless Ford plans to sell of Mazda, as described in the first paragraph above. Otherwise, Ford owns controlling interest in Mazda, and there's nothing to be gained by buying more.

 

Mazda already was the lead developer of the C1 used by Ford, Volvo, and Mazda, so having them lead more development wouldn't be too much of a stretch.

 

I would like to see one of Ford's subs take over a closing plant - either Mazda or perhaps Volvo would make sense to me.

 

It will be interesting to see if there is anything to this email...

[68Cougar]

Ford has said, selling Mazda is not an option. Mazda is way too interconnect to Ford to be separated.

[JM]

While searching the internet: BusinessWeek: How to Fix Ford

 

Charles Hughes, former president of Mazda North America and Land Rover North America:

And, though not in his book, he said in an interview that he also thinks Ford should increase its stake in Mazda from 37% to more than 50%, or buy the Japanese auto maker outright, close it, and fold its product and engineering into the Ford brand.

 

"The Lincoln and Mercury brands merely play to Ford's long-suffering strategy of badge engineering, selling the same vehicles under different names," says Hughes.

 

Mazda, he says, has a very good product line, engineering, and design organization. But it should be folded, he says, into the Ford brand to make Ford stronger. "The model for what I am talking about is Toyota," says Hughes. Jaguar, he says, has been hurt by mismanagement and now suffers from being book-ended by Aston Martin at the top and Land Rover. "Sell Land Rover and Aston, and put all your resources into Jaguar sedans, crossovers, and sports cars, and put real marketing dollars behind it."

[Anthony]

Was the email from an employee or a brokerage? Either its a pump and dump scam or someone is divulging insider trading info. Either way, don't get too involved.

[JM]

Was the email from an employee or a brokerage? Either its a pump and dump scam or someone is divulging insider trading info. Either way, don't get too involved.

 

It was a firm-wide release from my employer, I think I posted vague enough so it's not insider info, just speculation

Edited September 9, 2006 by JM

[Footballfan]

Part of the whole Ford "turn around" rumours have included talk of Mazda. Some have said selling off the Mazda stake for money...this would probably include some kind of long-term development agreement seeing as how closely linked Ford & Mazda development is; Mazda doesn't have a V6 engine without Ford today, and Ford N.A. doesn't have a I-4 without Mazda.

 

Other rumours have talked about Ford increasing their stake in Mazda up to buying 100% of Mazda and making it another subsidiary. This development would probably increase Ford's reliance on Mazda for development. Perhaps turning ALL Ford of N.A. small car R&D over to Mazda. The leading proponent of this is a former Ford exec. who issued a book recently.

 

Other possibilities would simply be an agreement to turn over additional development responsibilities to Mazda or a closer link up of Ford & Mazda R&D. Perhaps an announcement of a new vehicle or platform developed by Mazda for Ford? Maybe an announcement of hydrogen rotaries by Mazda?

 

Another big announcement could involve plants. The Mazda6 is limited in capacity by the Mustang at Flat Rock (AAI). It's okay today when the MZ6 doesn't sell that well, but the next generation MZ6 is out in the spring and will (hopefully) need more capacity. Also Mazda could use a N.A. plant to build the MZ3. Perhaps a take-over of a closing Ford plant by Mazda?

 

So, there are the recent rumours about Mazda. I haven't seen or read anything firm yet. Anything else you could reveal from your email?

 

Scott

 

Hi Scott.

 

There was an article out a few months ago that indeed Mazda was considering purchasing an idled Ford plant as an alternative to building their own. I have always been an advocate of Ford replacing Mercury with Mazda in Lincoln-Mercury showrooms. The two brands are basically chasing the same buyers, but Mazda has a distinctive, respected lineup.

[retro-man]

I thought Japanese law prevented foreign companies from buying private Japanese businesses?

That is no longer true. One of the first big foreign acquisitions was Ripplewood LLC's takeover in 1999 of Tokyo Long Term Credit Bank (renamed Shinsei Bank).

[waymondospiff]

There was an article out a few months ago that indeed Mazda was considering purchasing an idled Ford plant as an alternative to building their own. I have always been an advocate of Ford replacing Mercury with Mazda in Lincoln-Mercury showrooms. The two brands are basically chasing the same buyers, but Mazda has a distinctive, respected lineup.

 

The rumour mill has definetely spoken of Mazda utilizing an idled Ford factory.

 

I like the way you think...but replacing Mercury with Lincoln, I'm afraid I disagree.

 

Grand Marquis...Montego...Milan...Monterey...Mountaineer...Mariner

 

6...3...RX8...MX5...5...CX9...CX7...CX5...B-Series

 

I don't see much overlap and I really don't see much cross shoping. Mercury, especially recently, has gone after "urban professional women" and Mazda has a marketer's dream of young male shoppers. I think combining an older, upscale shopper (Lincoln) with younger, trendier shoppers (Mazda) would be bad for both brands.

 

What I do like in your idea is the much larger dealer base & coverage to which Mazda would have access. And, most likely, the Mazda dealers would be much better, from experience with luxury clientle, than they are currently. Maybe linking Mazda to a traditional American brand would also bring a new shopper to Mazda, changing their demographic some. And if Lincoln gets a huge makeover, a la Cadillac, a more dynamic showroom partner could help. Problem is, I don't see that happening.

 

Now, say, a Volvo-Mazda dealer link-up. Axe the pretender C30 and push Volvo upmarket and let Mazda flush out the sub-30K market more. I like that even better.

 

Scott

[Roadrunner]

Now, say, a Volvo-Mazda dealer link-up. Axe the pretender C30 and push Volvo upmarket and let Mazda flush out the sub-30K market more. I like that even better.

 

I can see that working in some regards.

[matthewq4b]

Now, say, a Volvo-Mazda dealer link-up. Axe the pretender C30 and push Volvo upmarket and let Mazda flush out the sub-30K market more. I like that even better.

 

Scott

 

 

That makes sence to be honest, there has been a Mazda-Volvo dealer here in town for decades . In fact they are the oldest Volvo dealer in Edmonton (since the late 1960's) and tossed Mazda in to the mix decades ago. They are very sucsessfull. So sucsessfull in fact they recently added MB in to the dealers fold. In anouther building of course, but right next door.

 

So Mazda-Volvo dealers are feasable and there is precedent that it can & does work.

 

Now on the other hand the Peugot-Lada dealer was not quite as sucsessfull lol.

 

 

Matthew

[Footballfan]

The rumour mill has definetely spoken of Mazda utilizing an idled Ford factory.

 

I like the way you think...but replacing Mercury with Lincoln, I'm afraid I disagree.

 

Grand Marquis...Montego...Milan...Monterey...Mountaineer...Mariner

 

6...3...RX8...MX5...5...CX9...CX7...CX5...B-Series

 

I don't see much overlap and I really don't see much cross shoping. Mercury, especially recently, has gone after "urban professional women" and Mazda has a marketer's dream of young male shoppers. I think combining an older, upscale shopper (Lincoln) with younger, trendier shoppers (Mazda) would be bad for both brands.

 

What I do like in your idea is the much larger dealer base & coverage to which Mazda would have access. And, most likely, the Mazda dealers would be much better, from experience with luxury clientle, than they are currently. Maybe linking Mazda to a traditional American brand would also bring a new shopper to Mazda, changing their demographic some. And if Lincoln gets a huge makeover, a la Cadillac, a more dynamic showroom partner could help. Problem is, I don't see that happening.

 

Now, say, a Volvo-Mazda dealer link-up. Axe the pretender C30 and push Volvo upmarket and let Mazda flush out the sub-30K market more. I like that even better.

 

Scott

 

Hi Scott:

 

I was saying that Mercury should have been droped based on the plans that Ford has for Lincoln- that is essentially moving it downmarket. Another alternative: keep Mercury intact as is (although there would be some overlap with the Milan and 6). Completely reposition to make it a marketer of traditional rear-wheel-drive luxury cars; large, powerful, chrome laden in a traditional package. Face it, Cadillac has left that market when they repositioned their brand. I am sure that lincoln could find 200,000 takers a year for traditional American luxury cars