Ford to Increase Cooperation With Mazda and Kia

06/10/96

NikkeiNet reported that Ford Motor Company will increase its cooperation on component buying with South Korea's Kia Motors Corporation and Japan's Mazda Motor Corporation. The three auto makers are linked by equity partnerships and plan to cut costs by placing orders for parts cooperatively.

Japanese part makers fear that the joint initiatives my result in a reduction in their share of the components market if the Ford group decides to place orders with selected leading parts makers.

Ford recently increased their investment in Mazda, and Mazda has supplied Kia with the technology for a number of models. This year Kia will release a passenger car modeled on Mazda's luxury Sentia.

Paul Dever -- The Auto Channel