Tag Archive | "Mazda Motor Corp."

Supreme Court Clears Way For Seat-Belt Lawsuits


The U.S. Supreme Court ruled Wednesday that federal vehicle safety regulations don’t protect car makers from product-liability lawsuits for installing lap-only seat belts.

The unanimous decision, written by Justice Stephen Breyer, clears the way for a California lawsuit against Mazda Motor Corp. stemming from a 2002 fatal collision involving a 1993 Mazda MPV minivan. A rear-seat passenger wearing a lap-only seat belt was killed, and her family alleges that the lap-only belt was to blame, reported The Wall Street Journal.

The ruling could open up the industry to more lawsuits, and it may narrow the impact of a 2000 Supreme Court ruling for the industry barring lawsuits against auto makers that did not install airbags.

Two California courts had ruled that the plaintiffs’ seat-belt lawsuit couldn’t proceed because it was preempted by federal law. Other state and federal courts also had rejected similar lawsuits.

The relevant seat-belt regulations have since changed, and most passenger vehicles built after Sept. 1, 2007, must include shoulder-and-lap seat belts in all rear seating positions that face forward. However, hundreds of thousands of vehicles containing lap-only belts remain on the road.

Justice Breyer distinguished Wednesday’s ruling from the 2000 airbag decision, which he also wrote.

In the airbag case, federal regulators clearly intended to promote a variety of passenger restraints in cars, and product-liability lawsuits would have upset that intent, Breyer said. But on the seat-belt issue, he said, regulators encouraged the installation of shoulder-and-lap belts even if they weren’t required at the time.

The Obama administration had supported the plaintiffs’ right to sue Mazda, arguing that car makers weren’t exempted from the consequences of their choice to install lap-only belts.

Martin Buchanan, a lawyer for the plaintiffs, said Wednesday’s ruling was significant because it corrected a “widespread misreading” of the 2000 airbag decision. Mr. Buchanan said lower courts had interpreted the airbag ruling broadly to prohibit state-law liability suits against a wide range of products, from cell phones to boats, because they were subject to federal regulations. “This will correct that, and I think it will reverberate in other areas of the law as well,” he said.

Mazda spokesman Jay Amestoy said the company was disappointed in the ruling, but he noted the decision didn’t determine that the auto maker was liable or that the vehicle was defective. He said the company would vigorously defend the lawsuit.

Trade groups for auto makers had warned in a court brief that a ruling for the plaintiffs would upend years of industry reliance on the airbag ruling.

The Alliance of Automobile Manufacturers issued a brief statement expressing disappointment with the decision, but the group said the decision “reaffirmed the bedrock principles” of the airbag case.

Stephen A. Miller, a lawyer with the Cozen O’Connor law firm and a former Supreme Court law clerk, said the ruling demonstrates why it is too simplistic to think of the Roberts Court as always pro-business.

In some recent cases, Mr. Miller said, the court appears to be embracing a presumption against preemption of state-law tort suits.

Six other justices joined Justice Breyer’s opinion. Justice Clarence Thomas said in a concurring opinion that he agreed with the result but would have applied different legal reasoning.

Justice Elena Kagan was recused in the case because she worked on it previously when she served as U.S. solicitor general.

The case is Williamson v. Mazda Motor of America, 08-1314.

Posted in Auto Industry NewsComments (0)

Ford Lines up Buyers for Most of Mazda Stake-Media


TOKYO – Ford Motor Co. will sell most of its remaining stake in Japanese carmaker Mazda Motor Corp., with trading house Itochu Corp. and general contractor Kajima Corp. among nearly 10 firms that will buy shares from it, Japanese media reported.

Ford, which is looking to sell its stake to gain more flexibility in its Chinese operations, concluded talks with potential buyers on Tuesday, the Nikkei business daily said.

The sale will leave it with a stake of 3 to 4 percent in Mazda, media said.

Sources told Reuters last month that Ford would sell most of its remaining 11 percent stake in Mazda and that trading house Sumitomo Corp. and other Japanese business partners of Mazda were in talks to buy the shares.

In Wednesday’s report, the Nikkei said Itochu and Sumitomo will each buy a 3 percent stake for about 10 billion yen ($119.7 million).

Mazda’s main lender Sumitomo Mitsui Banking Corp., which already holds a 2.9 percent stake in the carmaker, will also buy more shares, the daily said.

The rest will go to companies that do business with Mazda, such as materials and parts suppliers, the Nikkei said.

Company officials at Itochu, Kajima, Mazda and Sumitomo all declined to comment on the reports.

Mazda shares were up 3.1 percent at 231 yen by 0100 GMT on the news, outperforming the Tokyo’s transport equipment which was up 0.2 percent.

Posted in Auto Industry NewsComments (0)

Sumitomo Mitsui to Overtake Ford as Mazda’s Top Shareholder, Chairman Says


Sumitomo Mitsui Financial Group Inc. expects to overtake Ford Motor Co. as the largest shareholder in Mazda Motor Corp., according to the bank’s chairman.

The company will become the leading shareholder in Mazda by the end of this year, Masayuki Oku, chairman of the Tokyo-based bank, said today. Ford, Mazda’s largest current shareholder, owns about 11 percent of the Hiroshima, Japan-based automaker. Sumitomo Mitsui Financial Group owns at least 2.9 percent, according to data compiled by Bloomberg.

Ford, which held a controlling stake in Mazda until two years ago, has joint ventures in Thailand and the U.S. with the Japanese company, while the companies plan to dissolve a partnership in China, Bloomberg reported. Ford has reached a tentative agreement to reduce its holding, worth about $515 million, by selling shares to Sumitomo Mitsui, Sumitomo Corp. and suppliers of the Japanese automaker, Nikkei English News reported Oct. 16, without saying where it got the information.

“There might be a gap between Mazda and Ford in their affiliation strategy,” said Takeshi Miyao, an analyst at consulting company Carnorama in Tokyo. “Ford should focus on strengthening business in developing countries like China or Thailand and shift production to South East Asia,” while Mazda has been trying to reinforce its domestic production, he said.

Mazda fell 0.9 percent to 212 yen in Tokyo, after earlier declining as much as 4.7 percent.

Capital Relationship

The Nikkei report about a change in the capital relationship between the two automakers is speculation, Mazda said in an Oct. 16 statement. Ken Haruki, a spokesman for the automaker, declined to comment further when contacted by Bloomberg News today.

“Ford’s ownership stake in Mazda remains unchanged,” Mark Truby, a Ford spokesman, said Oct. 15. “Ford continues to have a close strategic relationship with Mazda, and we cooperate in areas of mutual benefit. We have no further comment on the speculation.”

Ford is not releasing Mazda shares because it needs the finance, Sumitomo’s Oku said earlier today. The business tie-ups and spirit of the Ford-Mazda alliance won’t change, he said.

’Good for Mazda’

The bank will hold on to the Mazda stake it plans to buy by the end of the year “for a while,” Oku said.

“Having a bank as the largest shareholder is good for Mazda to ensure its financial status,” said Tatsuya Mizuno, a director at Mizuno Credit Advisory in Tokyo. “Mazda needs to find a new auto partner in the long term.”

Mazda had 64.4 billion yen ($793.6 million) in long-term borrowing from Sumitomo Mitsui, according to the automaker’s annual financial report. Mazda is considered part of Sumitomo’s network of Japanese corporations, or keiretsu, that typically own stakes in one another.

Ford owns more than 195 million Mazda shares, valued at about $515 million, based on last week’s closing price in Tokyo.

The second-largest U.S. automaker has signaled it intends to end developing cars and trucks jointly with Mazda. Ford’s new Fiesta small car is based on the mechanical foundation of the Mazda2 subcompact. Ford’s Fusion family sedan is based on the Mazda6 platform and its new Ranger pickup truck is built alongside its mechanical twin, the Mazda BT-50, at a factory in Thailand that the automakers jointly own.

“For a lot of designing and engineering, we’re going to be focused on Ford,” Mark Fields, Ford’s president for the Americas and a former Mazda chief executive, said last December. “Our efforts will be focused on the Ford system, as opposed to relying on others such as Mazda.”

In China, the world’s biggest auto market, Mazda and Ford are dissolving a joint venture with Chongqing Changan Automobile Co., Chief Executive Officer Takashi Yamanouchi said on July 1. A restructuring of the venture, currently 35 percent owned by Ford, 15 percent owned by Mazda and the rest held by Changan, will result in Mazda and Ford each forming 50-50 ventures with Changan, he said.

Posted in Auto Industry NewsComments (0)

Mazda to Recall 500,000 Cars for Power-steering Flaw


TOKYO – Mazda Motor Corp. expects to recall more than half a million vehicles worldwide due to power-steering flaws, its largest recall ever, Reuters reported.

The automaker has filed applications with local authorities to recall 215,000 vehicles in the United States and more than 10,000 in China, and now plans to broaden the net to include major export markets such as Europe and Australia, the spokesman said.

The recalls, estimated at 514,000 vehicles, target the Axela and the Premacy, known in some markets as the Mazda3 and the Mazda5, manufactured in Japan from 2007 to 2008.

The vehicles could experience a sudden loss of power steering, increasing the risk of a crash.

The spokesman said there had been three accidents reported in the United States in connection with the defect but no deaths or injuries.

The company said rust could break lose from a high-pressure pipe, straining the power steering pump and causing the system to shut down.

Last year it remedied the problem for models in Japan after issuing an advisory.

Toyota Motor Corp. has recalled more than 10 million vehicles since late last year due largely to problems with unintended acceleration that raised a storm of criticism in the United States.

It was fined a record $16.4 million by the U.S. National Highway Traffic Safety Administration, the maximum then allowed, for moving too slowly to recall vehicles with defective accelerator pedals.

Posted in Auto Industry NewsComments (0)