Skip to main content

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

Posted Feb 21st 2012 6:30PM

CommentsAdd
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 ($1.25 billion Cdn). In an effort to keep itself afloat, the Japanese automaker is rumoured 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 per cent.

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 per cent of all its vehicles are produced in Japan and 90 per cent 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 in 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.

News Source: Reuters

FOLLOW AUTOBLOG CANADA

Follow us on Facebook

Get updates from Autoblog Canada posted directly to your News Feed.

Add a Comment

*0 / 3000 Character Maximum