Daily Auto News Ford and Mazda to Separate
Daily Auto News
After 40 years of collaboration, Ford and Mazda will divide their development teams and go their separate ways. Although they will continue share information and partner on some projects, the two will no longer develop vehicles together.
Last month, at the Tokyo Motor Show, the head of Mazda Research and Development, Seita Kanai, told Automotive News, “In terms of actual joint programs with Ford, with tangible products, that relationship has actually weakened. Joint programs will become fewer and fewer.” Ford President for the Americas Mark Fields told Bloomberg News “Our efforts will be focused on the Ford system, as opposed to relying on others such as Mazda.”
The split has been developing for two years. According to Automobile Magazine, Ford sold off a 20 percent stake in Mazda in November, 2008, cutting its stake to just 11 percent. Mazda dismissed three Ford executives from its Board of Directors, presumably to demonstrate both Ford’s reduced holdings and sway.
Mazda CEO Takashi Yamanouchi told Automotive News that differing priorities about engine technology were behind the split. AN notes, “While Ford pursues better fuel economy with its turbocharged EcoBoost engines, Mazda is developing its own line of Sky engines that rely mostly on direct fuel injection. Mazda does not plan to share its new engine technology with Ford.”
Mazda and Ford have been working together for decades. According to Bloomberg News, Ford initially decided to partner with Mazda in 1969 on an automatic transmission venture. In 1979, Ford took on an equity stake of the company and later bought up a majority share in 1996 when Mazda was struggling to stay afloat. This new development shows that the tables have turned as some speculate that Ford’s main reason for the sale was to raise funds during the U.S. economic recession. Ford Motor Company was the sole U.S. automaker to avoid declaring bankruptcy during this economic downturn, and recently announced a near one billion dollar profit for the third quarter this year.
Some speculate that Ford has more to gain from the departure, and that Mazda may suffer significantly from the split. Aaron Bragman, an automotive analyst for IHS Global Insight, told Bloomberg, “The reality is Mazda is too small to do it on their own. Ford may have other options. They’ve got a European organization that is very good at developing small cars.”
Relations and planning between the two companies will not cease altogether. Officials from both companies suggest that the long standing relationship between Ford and Mazda is a valuable one that they can both benefit from in the future. Mazda CEO Takashi Yamanouchi told Bloomberg News, “Right now, it seems both companies are going their separate ways, but in the future there is the possibility of both coming together again. We’re sure there will come a time when we will need each other’s technology.”
Notable joint projects between the two companies include the development of platform mates like the Mazda Tribute with the Ford Escape and Mercury Mariner or the Mazda3 with the Volvo C30.
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