Japan's Mazda Motor Corp said it would raise up to $1.1 billion in a share sale and invest most of the funds to develop hybrid and other technologies in what analysts said was a long-overdue bid to close the gap with rivals. Mazda has been seen as a laggard in next-generation car technologies, especially after its ties with Ford Motor Co weakened when the cash-strapped U.S. automaker reduced its controlling one-third stake in Mazda to 13 percent last year.
"With the relationship weaker, there are certain things that Mazda now needs to do on its own, without Ford," said Okasan Securities auto analyst Yasuaki Iwamoto. He added he did not expect other Japanese automakers to raise equity.
Mazda, Japan's fifth-largest Japanese automaker, also halved its net loss forecast for the year to March, citing a stronger euro, cost cuts and better-than-expected sales globally. Mazda said in a statement on Monday that it would raise up to 95.9 billion yen ($1.1 billion) by issuing 315.2 million new shares and selling 96.8 million treasury shares.
"But in the midterm it will be positive for Mazda's growth," Tabei said. "I don't think Mazda is doing this public offering to bolster its finances. It is for strategic purposes, aiming to invest in eco-friendly technologies." Mazda has pledged it will raise its cars' fuel economy by 30 percent mainly by improving its internal combustion engines by 2015. It plans to gradually add electric components such as a hybrid system beyond that to meet stricter regulations.
The pressure to offer hybrid models has grown in Japan as consumers flock to the gasoline-electric vehicles, which receive the biggest tax breaks under a government initiative to drive sales of cleaner vehicles. Mazda, which posted a third straight quarterly loss in April-June as the economic slump hit car sales worldwide, now expects to post a group net loss of 26 billion yen ($289.5 million) in the year to March 2010. It had previously forecast a loss of 50 billion yen.
An average estimate of 15 brokerages by Thomson Reuters I/B/E/S put the net loss at 38.12 billion yen. It now expects an operating loss of 13 billion yen instead of 50 billion yen, as it lifted its global sales forecast by 55,000 vehicles to 1.155 million units on healthy sales of the Mazda3/Axela compact. [via Reuters] ($1=89.78 Yen)
In this week at New York International Auto Show, the new 2010 GMC Terrain will be presented, official photos and technical details being already published. "The new Terrain...read more
When it comes to choosing your new car there are hundreds of different options, but with the price of insurance increasing steadily, many people are thinking about how much their premium is going to...read more
At the end of last year, Mazda published the first images and details of the new generation Mazda 3. The Japanese builder model has received a new design and a much-...read more
GM is investing more than $230 million in four greater Flint, Mich. plants to support production of the 2011 Chevrolet Cruze and Volt.FLINT, Mich. - General Motors Company is...read more
The presentation of the new Hyundai Venue compact crossover will be on April 17 at the 2019 New York International Auto Show. The interesting thing about this presentation is that the brand will...read more
Automotive media and car enthusiasts the world over have long considered the Lancer Evolution to be one of the best - if not the greatest - 4-door sports sedan of all time....read more
The new Alfa Romeo Tonale is currently being launched in the most important European countries. For this occasion, Alfa Romeo has opened a new flagship store in Milan. The...read more
Right from its release three years ago Audi Q7 was a true leader among SUV's sporting premium, version of 2010 is more elegant, with less polluting emissions and last but not...read more
Picking a new car can be a tricky decision, especially when you’re on a budget, and there are so many options out there. The decision will of course depend on what your requirements are. Here are...read more
Mazda has won the Red Dot design awards for both the Mazda CX-30 and the electric Mazda MX-30. This prize is awarded to product design that is considered innovative and...read more