Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

Ford Ups Mazda Stake

HIROSHIMA, Japan -- U.S. car giant Ford is sliding into the driving seat at Japan's Mazda Motor Corp, raising its stake to one-third in a deal that Mazda hopes will put them on track to become the world's top automotive group.

The deal announced Friday tightens an existing alliance between the world's No. 2 carmaker and Japan's fifth-biggest automobile manufacturer, and analysts said it could herald more such strategic link-ups between U.S. and Japanese firms.

Henry Wallace, a Ford executive, will take over as Mazda's new president.

under the agreement, said the Japanese firm faced big financial challenges and was only "at the threshold for moving from a loss to profit," although he sought to allay any fears that Ford Motor Co.'s bigger management say might mean drastic layoffs at Mazda.