The Mazda and Ford Partnership

Oct 21
07:16

2011

Aloysius Aucoin

Aloysius Aucoin

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The automotive manufacturer, Mazda, began to make vehicles in the early 1930's. Now they're still making vehicles. Read on to learn more about their history.

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The automotive manufacturer,The Mazda and Ford Partnership Articles Mazda, began to make vehicles in the early 1930's. Before that, the company made weapons, machinery and tools. The first vehicles were more like scooters combined with a truck. Next came small cars, then convertibles and pickup trucks. The business started in Japan but eventually spread to Canada and North America. It was quite innovative and did well in the early years. It utilized a rotary engine designed by a German engineer named Felix Wankel. This was quite popular until the oil crisis of the early 1970's made motorists think twice before purchasing high performance, gas guzzling vehicles. It was at that time that the car manufacturer began to rethink its approach. One part of that rethinking chapter included partnering with American auto giant, Ford Motor Company.

In 1979, in order to boost up Mazda's sagging finances, the company took on a corporate investor, which was the Ford Motor Company. Initially, Ford had a 7% stake as a partner and by the 1980's gained even more stake in the operation. The companies worked together to create high quality products such as pickups and small sedans. Some of the cars and trucks involved in these shared endeavors included the Probe, the Telstar, the Laser, the Mazda B-Series and the Escort.

An assembly plant that is a combined venture of these two auto makers is located in Michigan and called the Auto Alliance International. These two companies have worked together in many ways sharing ideas such as when Mazda engineers helped Ford develop vehicles such as the SUV called the Explorer. The Miller cycle engine was introduced due to Mazda's expertise with various types of alternative engines. This new type of engine was initially used in luxury sedans in the 1990's and was reduced in size to be used in smaller cars.

Another financial setback occurred for the Japanese car maker due to the 1997 Asian financial crisis. This crisis stemmed from countries such as Thailand, Indonesia and South Korea and spread to other Asian nations such as China, Pakistan, India, Vietnam, Taiwan and Japan. Personal debts were rising, stock values were falling off and currencies were devalued. At this time, Ford stepped in and assumed more control of Mazda to bolster it and set another course.

A few years later, American car makers fell into financial troubles, as well. In 2008, the global money problems caused another upheaval. Ford's stake lessened as it sold off assets to protect its own financial stability and Mazda's management regained ownership of a large sum of shares. These two companies are no longer tied to each other as closely as they once were but they remain partners on many levels such as innovation and technological advancements.

Over the years, the world's financial markets and car makers have ridden a roller coaster of recessions, slumps, debt burdens and more. Throughout it all, it's amazing that a company from Japan and one from America became each other's saving grace through tough times and have both emerged as survivors in the tough auto manufacturing climate. Mazda and Ford's partnership was beneficial to many including themselves.