Mazda axing U.S. production, severing Ford ties


Mazda plans to pull the plug on its joint venture with Ford and stop building cars in the U.S., the Nikkei Financial Daily is reporting from Japan.Instead, Mazda would switch production of its U.S.-sourced cars to Japan starting in 2013 in a shakeup of its worldwide manufacturing, Nikkei says citing unnamed sources.

Mazda and Ford operate the AutoAlliance International plant in Flat Rock, Mich., as a jointpartnership, the Associated Press says. Mazda makes its Mazda6 midsize sedan, an unimpressive seller in a crowded field. Ford makes the Mustang in the same plant.In addition to pulling out of the plant, Mazda would sell its stake in the venture to Ford.

There had been reports for months that Mazda was taking a hard look at its U.S. operation, so any pullout wouldn't be a complete surprise. Still, it would hurt in ravaged Michigan.
Mazda issued a not-terribly-reassuring statement earlier today saying the report was "not based on information it had released." Not exactly a full-throated denial, eh?