PRESS RELEASE
Ford/Mazda Relationship Proving Successful
17 April 1997
Ford/Mazda Relationship Proving Successful
DEARBORN, Mich., April 17 -- A year after Ford and Mazda
Motor Company reached an agreement to strengthen their relationship,
executives of both companies today said they are realizing the benefits of
increased integration -- while retaining corporate individuality -- in this
unique partnership.
The agreement strengthened the long-established strategic relationship
between the two companies on a global basis. In line with this, Ford
increased its shareholdings from 25 percent to 33.4 percent. The strategic
relationship is intended to increase the competitiveness of both companies by
improving efficiency and achieving greater economies of scale through
effective utilization of resources, while maintaining the separate identity of
each company, and providing each with stronger, differentiated product
offerings.
"The increased integration means both companies can offer customers better
choice because we can enhance the product development, manufacturing,
purchasing and distribution capabilities of Mazda and Ford," said Wayne
Booker, vice chairman, Ford Motor Company,
"Last year, we viewed this as a long-term investment, but we're already
seeing the benefits of improving competitiveness at both Mazda and Ford,"
added Henry Wallace, president, Mazda Motor Corporation. "We are competitive
partners in the best sense of both words."
During media briefings in Dearborn and Hiroshima, Booker and Wallace
pointed to a number of accomplishments that can be credited to the
partnership.
In product development, Ford and Mazda have:
* established a synchronized cycle plan that will allow the companies to
share base-line design and engineering expertise, thus freeing up
resources to create differentiated products for a variety of customer
needs
* agreed to a plan for progressively commonizing platforms and powertrains
that reduces the number of platforms at both companies while increasing
the number of differentiated offerings for consumers
In manufacturing, the two companies have:
* increased cooperation on strategies to maximize existing resources, i.e.
the AutoAlliance International (AAI) Plant in Flat Rock, Michigan and
the AutoAlliance Thailand (AAT) Plant on the Rayong Penninsula in
Thailand
* opened new communication channels that will allow for increased
efficiency through benchmarking and sharing best practices
And in distribution, both companies are anticipating positive results
from:
* strengthening distribution networks
* improved sales and profits from reduced costs associated with
distribution
"Mazda and Ford are separate companies, but the strengthening of our
partnership has enabled each to be even more competitive," said Wallace.
"We're able to take advantage of each other's strengths -- Mazda offers
excellent capabilities in product engineering and production engineering of
small volume with a variety of products, while Ford has proven success in high
volume manufacturing and marketing and sales -- and in the process each
becomes a better company."
Mazda and Ford have been business associates for nearly 30 years. The
relationship began with a joint venture to manufacture automatic transmissions
in Japan in l969, and in 10 years grew to Ford acquiring a 25 percent stake in
Mazda in 1979. The companies moved closer by implementing a strategic
alliance in 1993. Ford increased its equity in Mazda last year.
"The Mazda/Ford partnership is achieving success because both partners are
fully aware of the importance of being competitive partners," Booker said.
"Both companies have long and rich histories, and our goal is to take
advantage of that, so that each company is positioned strongly to meet the
challenges ahead."
SOURCE Ford International
CONTACT: Tom Hoyt of Ford International, 313-322-9211