Mazda, Ford deny report of Mazda president change

TOKYO, Feb 27 Reuters is reporting that Mazda Motor Corp , Japan's fifth-largest automaker, is expected to appoint a new president from Ford Motor Co , a Japanese newspaper said on Wednesday, but both Mazda and its U.S. parent swiftly denied the report.

The Nihon Keizai Shimbun said Lewis Booth -- the head of Ford's Asia Pacific and Africa operations -- would be named as Mazda's next president in June, replacing Mark Fields.

``We have no plans for any changes in our management beyond what was announced yesterday,'' a Mazda spokesman said.

Mazda announced on Tuesday that the 53 year-old Booth would join the Japanese automaker this week as a senior adviser in charge of corporate strategy.

Forming strategies for China and other parts of Asia would be key parts of his job, said Shigeru Hiraiwa, Mazda's director in charge of Corporate Communications.

The financial daily said Ford, which owns one-third of Mazda, had decided to send in Booth because it wanted stronger leadership to revive its sagging operations.

The appointment of Booth as president would be confirmed at a shareholders meeting in late June but may be delayed slightly because Mazda has several new models set to be unveiled by mid-year, it said.

``That's just a speculative report,'' said Ford spokesman Ron Iori. ``Mark's still the president of Mazda.''

Mazda spent much of the 1990s in the red and has been restructuring since Ford sent executives over in 1996.

Fields, now 41, was sent from Ford in 1998 and became president in December 1999.

NO STRATEGY CHANGE, EVEN IF PRESIDENT CHANGES

Auto analyst Shu Nung Lee at Lehman Brothers said he saw no reason for a change of president and added that if there was a change, it would not mean a change in strategy.

``The Ford strategy for Mazda is pretty much etched in stone,'' he said.

Fields has consistently said the two firms have an excellent relationship and Ford's chief operating officer, Nick Scheele and chief executive William Clay Ford Jr have publicly voiced support for him and Mazda's restructuring plans.

Even so, the future of Fields with Mazda has been the focus of repeated speculation, particularly due to Ford's recent difficulties.

Some analysts speculated that last year's ousting of Jacques Nasser as chief executive would provide a chance for Ford to replace Fields, an American, with a Japanese executive to boost morale at Mazda.

Speculation has also swirled that Ford, distracted by its own troubles, would devote fewer resources to helping Mazda in its restructuring plans.

Mazda in November said aggressive cost-cutting and favourable exchange rates had helped it return to the black in the first half of 2001/02.

It revised up its profit target for the full year to March, forecasting group net earnings of 1.3 billion yen ($9.66 million), compared with a May forecast of breakeven and a net loss of 155.2 billion yen the previous year.

While analysts have said Mazda will have a good chance of meeting its 2001/02 forecasts, it will be launching a crucial new product blitz when the U.S. and Japanese markets will likely be weak.

At 0345 GMT, shares in Mazda were up 3.35 percent at 330 yen, while the Nikkei average was up 3.18 percent.