Why did Mazda leave Ford?
Ford did not simply abandon Mazda outright, but it gradually reduced its ownership stake and exited the cross-ownership arrangement. Mazda today is independent, while the two manufacturers maintain only limited, project-based collaboration.
Origins of the partnership
Key milestones
The two companies forged a long-running relationship that stretched from the late 20th century into the 2010s. Ford began acquiring an ownership stake in Mazda in the late 1970s and grew its influence over time, with a peak in the 1990s when Ford owned a substantial minority stake. The collaboration included co-developed platforms, joint product programs, and shared manufacturing efforts across markets.
- Late 1970s: Ford starts taking a stake in Mazda as part of a broader strategic alliance.
- 1990s–early 2000s: Ford’s stake remains significant, and the companies pursue joint development of vehicles and platforms.
- 2010s: Ford begins to unwind the arrangement, selling down its stake as both companies reassess global strategy.
- Mid-2010s: Ford sells its remaining stake, effectively ending the cross-ownership; Mazda becomes independent, with limited ongoing collaboration.
In summary, the partnership evolved from a deep cross-ownership to a largely standalone operation for Mazda, with Ford stepping back from its financial ties while the two brands continued to interact only on select initiatives.
Why the separation happened
Contributing factors
Several drivers pushed the relationship toward dissolution. Ford faced a major downturn during the late 2000s, prompting a strategic shift to focus on core brands and free up capital. Mazda sought greater autonomy to pursue its own design language, global expansion, and investment decisions without being tied to Ford’s corporate priorities. As the automotive landscape consolidated around platform sharing and economies of scale, the benefits of a large cross-ownership structure diminished for both parties. Additionally, Ford’s One Ford strategy and later restructurings favored concentrating resources on its own model lineup rather than maintaining minority stakes in overseas partners.
These dynamics collectively made a clear separation prudent for both sides, enabling each company to pursue its own long-term plans while preserving limited cooperation where it remained valuable.
What remains of the relationship
Residual collaboration
Today, the two companies operate largely as independent automakers. The formal cross-ownership ended, and most deep-level collaboration ceased. Some limited, project-based interactions on technology and supply matters have occurred in the broader industry context, but there is no broad joint-venture framework between Mazda and Ford anymore.
- No active cross-ownership stake or formal parent-subsidiary relationship remains.
- Any ongoing collaboration is limited to predefined, specific projects rather than a standing alliance.
- Both brands continue to pursue independent strategies while occasionally benefiting from shared learnings within the global auto industry.
The separation allowed Mazda to accelerate its own product and regional strategies, such as expanding in key markets and refining its design language, while Ford refocused on its core brands and a different set of global priorities. The partnership remains a notable chapter in industry history, illustrating how shifting strategies can reframe long-standing alliances.
Summary
What began as a deep cross-ownership alliance between Ford and Mazda gradually evolved into a standalone Mazda with a diminishing role for Ford in Mazda’s equity. The unwind occurred over the 2010s, culminating in Ford selling its remaining stake and Mazda pursuing independent growth. Today, the relationship is largely limited to occasional, project-level collaboration rather than any formal partnership or ownership tie. The episode underscores how automakers recalibrate alliances in response to financial pressures, strategic priorities, and the fast-changing global market.
What is more reliable, Mazda or Ford?
Mazda is generally considered more reliable than Ford, with Mazda consistently ranking higher in dependability studies. Mazda has a strong reputation for long-term durability, whereas Ford reliability can vary significantly by model and year. Mazda's high rankings are attributed to consistent performance in areas like engine and transmission durability.
Mazda reliability
- High rankings: Mazda frequently ranks in the top 10 for reliability among mainstream brands. It has received high marks from organizations like RepairPal, Consumer Reports, and J.D. Power.
- Strong model performance: Specific models like the CX-5 and the MX-5 Miata are often highlighted for their dependability and low maintenance costs.
- Consistent quality: Mazda has invested in engine technology and manufacturing processes, leading to improved and consistent reliability across its lineup, especially in models from roughly 2010 onward.
Ford reliability
- Varying performance: Ford's reliability can be inconsistent and varies significantly depending on the specific model and year.
- Lower average rankings: Overall, Ford tends to rank lower than Mazda in reliability studies.
- Model-specific issues: While some models may be decent, they don't always reach the same reliability levels as top-tier competitors like Mazda or Toyota. For instance, some older Ford-era Mazdas had parts that were considered less reliable compared to later, self-developed models.
How to choose
- For higher and more consistent reliability: Choose a Mazda. Their models frequently score well across multiple reliability and safety ratings, notes Marin Mazda.
- For specific models: If you are considering a Ford, research the specific model and model year, as reliability can vary greatly.
- Consider other brands: It is also worth noting that other brands like Toyota often rank at or near the top in long-term dependability, with models like the RAV4 being a consistent performer, says Reddit users.
Is Mazda still owned by Ford?
No, Ford no longer owns Mazda; the partnership ended when Ford sold its remaining shares in 2015. Mazda is now an independent company, though the two companies maintain some strategic alliances.
- Past ownership: Ford began a partnership with Mazda in 1974 and increased its stake to a high of 33.4%.
- Divestiture: After the 2008 financial crisis, Ford began selling off its shares, with the process completing in 2015.
- Current status: Mazda is now a fully independent company, and Ford's ownership is negligible.
- Continued relationship: Despite the end of the ownership, the two companies still have some strategic partnerships.
Why did Ford and Mazda split?
Ford sold its stake in Mazda mainly due to financial struggles and a shift in strategy after the 2008 global financial crisis. They needed to raise cash and focus on their own brands and product-led plans, while also seeing that Mazda was doing just fine on its own.
Is Mazda owned by Toyota now?
No, Toyota does not own Mazda, but they have a strategic partnership and a cross-ownership structure. Toyota owns a 5.05% stake in Mazda, while Mazda owns a 0.25% stake in Toyota. This relationship includes a joint manufacturing plant in Alabama and technology sharing in areas like electrification.
- Cross-ownership: Toyota is Mazda's largest single shareholder, but Mazda remains an independent company.
- Joint manufacturing: The two companies operate a joint factory, Mazda Toyota Manufacturing (MTM), in Alabama, which produces both Mazda and Toyota vehicles, such as the Mazda CX-50 and the Toyota Corolla Cross.
- Technology sharing: They collaborate on technology, with Mazda utilizing Toyota's technology for some of its hybrid vehicles and potentially other components.
