Japanese carmaker Mazda Motor has spent 17.8bn yen ($184m; £123m) to buy back almost 7% of its shares from troubled US carmaker Ford Motor.
The Japanese company made the announcement the day after Ford decided to cut its stake in Mazda from 33.4% to just over 13%.
Ford has been hit by falling global sales and is seeking to raise cash along with its Detroit competitors.
Shares in Mazda fell 2.1% on Wednesday on the news.
According to media reports on Tuesday, the rest of Ford's stake in Mazda might be bought by trading houses Sumitomo and Itochu, Japanese insurance companies and car parts maker Denso.
Earlier this week General Motors sold its 3% stake in Japanese carmaker Suzuki for $230m (£156m).
Declining value
The possible sale of a 20% stake in Mazda was first reported more than a month ago.
At that moment, the stake was valued at $850m. However, based on Mazda's share price on Tuesday, the value of the holding has fallen to $543m, a quarter of what the stake was worth a year ago.
Ford first bought a stake in Mazda in 1979. It took control of the Japanese carmaker in 1996, saving it from potential bankruptcy.
The "Big Three" US car firms Chrysler, Ford and GM are seeking a total $25bn in emergency US government loans.
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