In a recent interview with BusinessWeek, Credit Suisse analyst Koji Endo said that Ford might be forced to sell its 33.9% stake in Mazda. And, if we think about it, that might be possible, considering the $8.7 billion second quarter loss announced late last month, not to mention that this year is one the worst financial years on record for the auto industry. Also, don’t forget Aston Martin, Jaguar and Land Rover, recently sold by Ford.
However, there are still a few aspects that could stop Ford from doing that. One of them would be the fact that Mazda is bringing in a healthy profit for Ford. Its stake in Mazda is worth about $2.5 billion but earnings are pretty high ($750 million expected this year), with Mazda predicting 1.48 million vehicles sold this year (9% more than last year). Another aspect will be that, even though Ford and Mazda would continue to share platforms and components, Ford selling its stake might leave Mazda vulnerable to a takeover from someone else.