As the financial crisis deepens, the number of consolidations in the financial sector increased. Now it is the auto sector’s turn as it faces billions of dollars of cash shortage to shore up its financial statement.
After reports said the cash strapped General Motors is in talks with Chrysler to merge, Detroit’s third biggest motor company, Ford Motor Co. , is drawing attention.
The company is planning to sell its controlling interests in Japan’s Mazda Motor Co. to raise the necessary capital to avert bankruptcy risk as global financial crisis deepens.
Japanese trading companies Itochu Corp and Sumitomo Corp are considering to buy shares in Mazda Motor Co from Ford Motor Co , the Nikkei business daily reported on Sunday.
Ford is mulling a sale of its stake in Mazda, a source familiar with the matter said on Saturday, as debt-laden U.S. automakers struggle with weakening auto sales and the global credit crunch.
Ford had approached Japanese trading companies, financial institutions and auto parts makers over the sale of its shares, Nikkei said. Mazda is also likely to buy back some of its shares, it added.
1 comment so far ↓
what a mistake for Ford to sell Mazda. Great company!
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