Mazda to Develop Compact Sport Utility Vehicle for Ford

10/22/96

Kyodo reported that Mazda Motor Corp. announced its plans to develop a 2000 cc class compact sport-utility vehicle for Ford Motor Co. Mazda said Ford will sell the new vehicle in North America.

The plan represents the first joint project for the two carmakers since Ford boosted its equity stake in Mazda to a 33% controlling interest. The project aims to reduce costs for developing a new vehicle by making use of Mazda's technology for developing compact ones. Mazda will develop the new vehicle's engine and body in Japan, while Ford takes charge of producing the vehicles in a U.S. plant.

Ford plans to start selling the sport utility vehicle in U.S. markets as early as the second half of 1998. Additionally, the company may also market the vehicle in Japan and other Asian markets as a "world car."

The two automakers have announced that by year's end they will release a plan that allows them to adopt common auto platforms for their respective models, thus saving money.

Paul Dever -- The Auto Channel