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Mazda Buys Back 6.8% of Shares From Ford

The Associated Press

TOKYO -- Mazda spent 17.8 billion yen ($184 million) to buy back 6.8% of its own shares from cash-hungry Ford(F Quote), the Japanese automaker said Wednesday.

The move comes a day after Ford said it's slashing its stake in Mazda to 13.8% from 33.4%. That would still make Ford the top shareholder in Mazda, with which it has had a partnership for nearly 30 years.

The sale would give Ford 52 billion yen ($540 million) based on Mazda's closing stock price Tuesday of 184 yen, or $1.90 -- barely a quarter of what it was worth one year ago.

The move comes amid growing losses at America's major automakers, which are pleading with Washington for an emergency $25 billion bailout loan from the U.S. government to get through the economic slump.

On Monday, General Motors (GM Quote) said it would sell its remaining 3.02% stake in Japan's Suzuki Motor for 22.37 billion yen ($230 million).

Mazda, which makes the RX-8 sports car and Miata roadster, bought 96.8 million shares at 184 yen ($1.90) a share, the Hiroshima-based company said. The shares rose in morning trading but then dipped 1% Wednesday to 182 yen.

Ford formed a capital alliance with Mazda in 1979, taking a 25% stake. That was raised to 33.4% in 1996 -- a controlling share in Japan.

Over the last decade, Ford helped engineer a turnaround at once-struggling Mazda, sending executives and sharing technology and auto parts to cut costs. Ford and Mazda have said they will maintain their strategic relationship.