Mazda won't seek new partner after Ford cut stake

Mazda Motor Corp.’s chief executive officer said Japan’s second-largest auto exporter isn’t looking for another partner after Ford Motor Co. reduced its stake in the company.

Technology sharing with Ford will continue, with other collaborations expected, Takashi Yamanouchi said today at the New York International Auto Show. The Hiroshima-based automaker and Ford are moving ahead with joint-venture operations in Thailand and China, he said.

"We have a relationship that goes back 30 years," said Yamanouchi, 64, through an interpreter. "We are continuing joint development of our platforms."

His comments come after Ford in November trimmed its holdings of Mazda shares to 13 percent from 33.4 percent to raise cash as losses continued and U.S. sales slumped. Yamanouchi said that in January he met with Ford CEO Alan Mulally, who assured him that the reduced stake didn’t represent a change in the relationship with Mazda.

Mazda expects to generate more cash this fiscal year than it consumes, and its credit line of 200 billion yen ($2 billion) remains untapped, Yamanouchi said. The company plans to keep up spending on research and development for new models and engine technology, notwithstanding the global recession that has trimmed vehicle sales.

Investing in R&D

"We haven’t cut our R&D or design spending, because that is important for the future health of the company," Yamanouchi said today in a speech at the New York show. "We are investing in product and technology development more than ever before," he said, without providing figures.

Mazda spent 114.4 billion yen on research and development in the fiscal year through March 2008. It hasn’t released figures for the year that ended last month or the fiscal period that started April 1. Since Ford cut its stake, Mazda has to do more of its own development.

The company’s U.S. sales fell 31 percent in the quarter that ended March 31, compared with declines of 37 percent for Toyota Motor Corp. and 34 percent for Honda Motor Co. Industrywide sales dropped 38 percent.

The company aims to boost the fuel efficiency of its models 30 percent by 2015 and develop "electrical device solutions" and a new Mazda hybrid, Yamanouchi said, without elaborating.