Ford Motor to lose status as biggest Mazda shareholder

Ford Motor will sell the bulk of its 11 per cent stake in Mazda Motor, the Japanese firm said yesterday, meaning the US auto giant will no longer be its top shareholder for the first time since 1979.

The move follows reports that Ford wanted to reduce its Mazda stake in order to gain more flexibility in operations in China.

Ford had been the top shareholder in the Hiroshima-based automaker since 1979 and at times has owned more than a third of Mazda, but started cutting its stake in 2008 in the wake of the global financial crisis. The companies cooperate in terms of production, procurement and research and build some models using a common chassis, with joint production facilities in the US, China and Thailand.

In a statement, Mazda said the companies would continue their strategic partnership despite Ford’s decision to reduce its stake by around two-thirds to 3.5 per cent.

Ford will drop to Mazda’s fourth-biggest shareholder after the sale that is due to be completed by November 25. The US auto giant will transfer part of its shares in Mazda to several of Mazda’s business partners, the statement added, without elaborating.

Japanese media reported earlier this week that as many as 10 firms will purchase Ford’s Mazda shares.

“This change in shareholding will not affect Mazda’s business direction or financial projections,” Japan’s fifth-largest automaker said in a statement.