When Did Ford Stop Making Mazda?

The relationship between Ford and Mazda was a significant chapter in automotive history, marked by strategic alliances and shared technologies. Understanding when and why this partnership dissolved is crucial for appreciating the current automotive landscape and the independent trajectories both companies now follow. This article will delve into the history of their collaboration, the factors leading to Ford's divestment, and the implications for both brands.

Detailed Explanations

Ford's Initial Investment in Mazda (May 1979)

In May 1979, Ford Motor Company made its first significant move by acquiring a 24.5% stake in Mazda. This initial investment was driven by several factors, including Ford's desire to gain access to Mazda's expertise in smaller, fuel-efficient vehicles, a growing market segment at the time. This also provided Mazda with much-needed capital and access to Ford's global distribution network.

Increased Ford Ownership (1996)

By 1996, Ford increased its ownership in Mazda to 33.4%, giving it a controlling interest. This move reflected Ford's deeper commitment to the partnership and its intention to exert greater influence over Mazda's strategic direction. This period witnessed a surge in platform sharing and joint development initiatives, leading to several shared models.

Financial Troubles at Mazda (Late 1990s - Early 2000s)

The late 1990s and early 2000s were a challenging period for Mazda, as the company faced significant financial difficulties. This situation arose from a combination of factors, including economic downturns and a lack of competitive models in key markets. Ford, as the majority shareholder, stepped in to implement restructuring measures aimed at revitalizing the company.

Ford's Global Restructuring (Mid-2000s)

Around the mid-2000s, Ford itself began experiencing its own financial struggles, prompting a global restructuring plan known as "The Way Forward." This plan involved divesting non-core assets to raise capital and focus on its core business operations. The Mazda stake, while strategically important in the past, was identified as a potential asset for divestment.

First Divestment of Mazda Shares (2008)

In 2008, Ford initiated its divestment strategy by reducing its stake in Mazda to 13.4%. This move signaled a significant shift in the relationship between the two companies, moving away from a controlling interest towards a more arms-length strategic partnership. This decision was primarily driven by Ford's need to raise capital during its financial crisis.

Further Share Reduction (2010)

Ford continued its gradual withdrawal from Mazda's ownership structure in 2010, further decreasing its stake to just over 3%. This reduction effectively ended Ford's substantial influence over Mazda's operational decisions. Mazda regained greater autonomy, allowing it to pursue its own strategic vision.

Final Share Divestment (2015)

The final chapter in Ford's ownership of Mazda concluded in 2015 when Ford sold its remaining shares. This complete divestment marked the end of the equity tie between the two companies, concluding a decades-long partnership that had significantly shaped both automakers.

Continued Collaboration (Post-Divestment) 2015 - Present

Despite the full divestment, Ford and Mazda have continued to collaborate on specific projects. This ongoing collaboration demonstrates that the two companies still recognize mutual benefits in certain areas, such as engine development and joint manufacturing ventures. They continue to work together on projects where their expertise aligns.

AutoAlliance International (AAI) Plant Closure (August 2021)

The closure of the AutoAlliance International (AAI) plant in Flat Rock, Michigan, in August 2021 represented a symbolic end to a significant era of Ford-Mazda collaboration. This plant, which was jointly operated by the two companies, had been a major hub for their shared manufacturing efforts for many years. Its closure reflects the changing dynamics of their relationship and the broader shifts in the automotive industry.

Specific Models Resulting from the Partnership (Various)

Several notable vehicles resulted from the Ford-Mazda partnership, showcasing the benefits of platform sharing and joint development. These include:

• Ford Probe (based on Mazda MX-6): A sporty coupe that leveraged Mazda's engineering expertise.
• Ford Courier (Mazda B-Series): A compact pickup truck that shared its platform with Mazda's B-Series.
• Mazda Navajo (Ford Explorer): A two-door SUV that was essentially a rebadged Ford Explorer.
• Ford Escape/Mazda Tribute: Compact SUVs that shared a common platform and powertrain.

These models exemplify the practical outcomes of the Ford-Mazda collaboration, demonstrating how the two companies were able to leverage each other's strengths to create successful vehicles.

Frequently Asked Questions

When did Ford first invest in Mazda?

Ford first invested in Mazda in May 1979, acquiring a 24.5% stake. This marked the beginning of a long-term partnership.

When did Ford sell its last shares in Mazda?

Ford sold its remaining shares in Mazda in 2015, completely severing the equity tie between the two companies. This marked the end of their ownership relationship.

Did Ford ever fully own Mazda?

No, Ford never fully owned Mazda, but they did have a controlling interest of 33.4% in 1996. This allowed them to exert significant influence over Mazda's operations.

Do Ford and Mazda still collaborate today?

Yes, despite the share divestment, Ford and Mazda continue to collaborate on specific projects, such as engine development and joint manufacturing ventures. Their collaboration is now more focused and project-based.

What was the AutoAlliance International plant?

The AutoAlliance International (AAI) plant was a joint Ford-Mazda manufacturing facility in Flat Rock, Michigan. It closed in August 2021, symbolizing the end of a major era of their collaboration.

What were some cars that Ford and Mazda built together?

Some notable cars built through the Ford-Mazda partnership include the Ford Probe (based on the Mazda MX-6), the Ford Courier (Mazda B-Series), the Mazda Navajo (Ford Explorer), and the Ford Escape/Mazda Tribute. These represent examples of platform sharing.

Conclusion

Ford's relationship with Mazda was a dynamic and multifaceted partnership that evolved over several decades. From initial investments to strategic alliances and eventual divestment, the collaboration shaped both companies in significant ways. While Ford no longer holds any equity in Mazda, the legacy of their joint ventures and shared technologies continues to influence the automotive industry. The models they produced together, and the technological advancements they shared, showcase the benefits and complexities of international automotive partnerships.