Ford Seeks Half of Mazda’s U.S. Manufacturing Subsidiary

Ford Motor Co. said Wednesday that it had agreed to buy half of Mazda Motor Corp.’s U.S. manufacturing business, a move matching U.S. financial savvy with Japanese auto-making expertise.

The nation’s No. 2 auto maker said it signed a memorandum of understanding with Mazda to take a 50% equity stake in Mazda Motor Manufacturing Corp., the Japanese company’s U.S. subsidiary that operates a plant in Flat Rock, Mich.

Ford did not disclose the value of the acquisition, but Mazda’s initial investment in the plant in 1987 was $550 million.

The plant employs about 6,300 workers and can produce as many as 240,000 vehicles a year.

Ford already owns 23.9% of the Mazda parent company, a stake that is not changed by the purchase of half of the subsidiary.

Mazda’s Flat Rock plant is currently gearing up for production of Ford’s new 1993 Probe model and Mazda’s new 626 and MX-6 models. The plant covers 50 acres near Detroit.

The proposed transaction has been submitted to the Federal Trade Commission and Department of Justice for review.