Mazda to rev up brand
The decision by Ford Motor Co. to reduce its stake in Mazda Motor Corp. from 33.4% to about 13.4% might well be taken in stride by the Japanese automaker, as it now has more latitude to develop its strengths, including smaller cars and green vehicles. “Our relationship with Ford will not change,” insisted Mazda Chairman and President Hisakazu Imaki. However, it seems inevitable that the partnership will be fundamentally altered, given Ford’s significantly reduced stake. Mazda had faced a management crisis around the year 2000, eventually recovering, thanks to a restructuring initiated by Ford. Mazda has since been growing rapidly and improving earnings by focusing resources on small and mid-size cars, its specialty within the Ford group. (November 19, 2008)