Posts Tagged ‘a-massive-38-7’

Troubled Mazda looking to raise $2B in shares, fund Mexico plant

Published by Mazda Blogs on February 22nd, 2012

Filed under: , ,

Mazda emblem

Mazda once again finds itself in dire financial straits after warning its investors to expect a loss in 2011 of 100 billion yen ($1.3 billion). In an effort to keep itself afloat, the Japanese automaker is rumored to be considering a new issue of as many as 690 million shares, which would raise about 100 billion yen while diluting current share value by a massive 38.7 percent.

In addition, Mazda is thought to be seeking loans of 70 billion yen from a number of Japanese banks. A good portion of these funds are necessary to bolster Mazda’s overseas production facilities. At present, 70 percent of all its vehicles are produced in Japan and 90 percent of those are exported. In order to combat the high value of the yen, Mazda is seeking to renovate a production site in Thailand and build a new one on Mexico.

Only time will tell if Mazda, Japan’s fifth-largest automaker, is able to remain an independent company or if it will be forced to partner up with a larger partner, as it once had with Ford.

Troubled Mazda looking to raise $2B in shares, fund Mexico plant originally appeared on Autoblog on Tue, 21 Feb 2012 17:28:00 EST. Please see our terms for use of feeds.

Permalink


Tweeter button Facebook button