To process the transaction, both Mazda and Mazda business partners will purchase shares of Ford-owned Mazda stock. Mazda and Ford claim they will continue with their joint ventures, vehicle development, and platform/powertrain sharing such as the Ford Fusion/Mazda6/Mercury Milan platform-mates.
Says Ford CEO Alan Mulally, "this agreement allows Ford to raise capital that will help fund our product-led transformation." Ford, along with domestic automakers GM and Chrysler, has been burning through record amounts of cash just to stay afloat during exceedingly tough times due to lagging sales and reduced availability of credit to would-be consumers. In the third quarter of 2008 alone, Ford spent $7.7 billion to remain solvent.--Colin Mathews