Ford Competitors Would Pay Handsomely for Mazda Stake

Ford Motor Co. has dumped a number of its brands in recent years including Aston Martin, Jaguar, and Land Rover

Now there is buzz that Ford will be unloading Mazda.
Currently Ford owns 33.9 percent of Mazda which gives it control of the company. It is said that the stake is worth $2.5 billion on the open market. That is slightly more than Ford garnered in its deal with Tata Motors for Jaguar and Land Rover but it is less than one-third of the company’s most recent quarterly loss.

Mazda could attract a lot of buyers. The Japanese auto maker expects net earnings to be $750 million for the current fiscal year. That’s net EARNINGS. The company also expects to sell 1.48 million cars this year. That would be a 9 percent raise in sales over 2007.

Rumors about Volvo getting the axe are becoming persistent.

Our take? So, would selling Mazda really help? Or would it be better to hold on because the company offers a plus to Ford’s bottom line?

via Business Week