Ford Motor Company of Southern Africa (FMCSA) and Japan’s Mazda Motor Corporation (MC) have announced that FMCSA has decided to return Mazda distribution rights for Southern Africa to MC. The handover is expected to be completed before the end of 2014.

The current global corporate partnership between the US’s Ford Motor Company and MC on platforms and technologies remains unchanged.

Over the years, Ford has reduced its shareholding in Mazda from 33.4% to a position where it currently, reportedly, holds around 2% in the Japanese manufacturer.

“Consistent with our One Ford plan to have a laser focus on the Ford brand, as well as our continually expanding product portfolio in South Africa, we will move to fully dedicated Ford dealerships after the separation,” says FMCSA president and CEO Jeff Nemeth.

August’s statement says the strategic decision to return the distribution rights to Mazda will benefit both brands in the long term.

“The Mazda brand in South Africa will benefit from its own vision, supported by a dedicated and focused team supplying new products going forward.”

“Mazda and Ford have enjoyed a mutually beneficial relationship for many years in South Africa,” says MMC executive officer in charge of new emerging market operations Hiroshi Inoue. “Mazda will now have the opportunity to forge its own strategic direction in South Africa.”

Mazda has obtained approval from its board of directors to establish a new national sales company in South Africa to take over the Mazda sales and service business from FMCSA.

The company will also determine its own market representation strategy.

However, assembly of Mazda’s BT-50 bakkie at the FMCSA’s Silverton assembly plant will continue for the new company after the transition.

“FMCSA and MC will work together to ensure a seamless transition of the business to the new company, with a key focus on ensuring all existing and new Mazda customers continue to be taken care of and receive full warranty and service support,” adds Nemeth.