Ford Motor Co.'s
decision to no longer provide sales financing for Mazda Motor Corp. is likely, as the company said, simply part of the automaker's effort to shrink its struggling financing operation. But whatever the reasoning, the move appears another step in the gradual decoupling of Ford from its Japanese affiliate.
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A potential Ford sale of its one-third stake in Mazda has long been rumored as the Dearborn, Mich.-based automaker continues asset sales and other capital raising to fund its ongoing turnaround. Ford in recent years has divested nameplates Aston Martin, Jaguar and Land Rover, but company officials have downplayed talk that Mazda or Volvo, its other remaining foreign brand, could be sold.
Still, most believe it is only a matter of time before the company divests its foreign affiliates. Company CEO Alan Mulally has built his turnaround plan around a strategy of uniting the entire company's operations around the Ford brand. That will likely take some time to accomplish, and Ford in the meantime appears to be in no rush to get rid of the remaining brands.
But if and when the time comes, the separation from Ford's financing announced this week will remove one complication to a Mazda sale. - Lou Whiteman
See Motor Trend story on Ford Credit and Mazda parting ways
See Dealwatch: Autos
Comments
Not sure if this divorce is really as smart as everyone seems to believe these days: What with the current credit crunch it's highly unlikely that auto companies can hope to survive without as much synergy, cooperation and global joint venture activities as possible.