Welcome to the North American Subaru Impreza Owners Club Tuesday September 26, 2017
Home Forums WikiNASIOC Products Store Modifications Upgrade Garage
Go Back   NASIOC > NASIOC General > News & Rumors > Non-Subaru News & Rumors

Welcome to NASIOC - The world's largest online community for Subaru enthusiasts!
Welcome to the NASIOC.com Subaru forum.

You are currently viewing our forum as a guest, which gives you limited access to view most discussions and access our other features. By joining our community, free of charge, you will have access to post topics, communicate privately with other members (PM), respond to polls, upload content and access many other special features. Registration is free, fast and simple, so please join our community today!

If you have any problems with the registration process or your account login, please contact us.
* Registered users of the site do not see these ads. 
Thread Tools Display Modes
Old 10-05-2009, 04:12 PM   #1
Scooby Guru
Member#: 73805
Join Date: Nov 2004
Location: NEPA
2017 911 Turbo
Miami Blue

Default Mazda to raise $1.1B to contend with hybrid leaders

TOKYO (Reuters) -- 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 13.8 percent last year. Despite the change, Ford remains Mazda's largest single shareholder.

Due to the capital increase, Ford's stake will be diluted to about 11 percent, a Mazda Europe spokesman said. Other than that there will be no change in the relationship between Mazda and Ford, the spokesman said.

"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.

The offering underscores a race by companies to tap resurgent equity markets for funds. Japanese broker Nomura Holdings finalized plans on Monday to raise up to $5.1 billion in a share sale.

Strategic move
The news could trigger selling of Mazda's stock over the near term as the offering could boost the total number of shares outstanding by up to 26 percent, said Yoshihiko Tabei, an analyst at Kazaka Securities.

"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 improve 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. Hybrids also are popular in the United States, Mazda's No. 1 unit-sales market, and are gaining slow acceptance in Europe. Rivals such as Toyota Motor Corp. and Honda Motor Co. already offer hybrids in Japan, Europe and the United States.

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. 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 compact.
* Registered users of the site do not see these ads.
AVANTI R5 is offline   Reply With Quote
Sponsored Links
* Registered users of the site do not see these ads.

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
need help!! need to borrow 1 17inch 5x114 wheel with tire for 1 day thesunnyboi Southern California Impreza Club Forum -- SCIC 0 01-18-2010 10:32 PM
need help!! need to borrow 1 17inch 5x114 wheel with tire for 1 day thesunnyboi SCIC Private Classifieds 0 01-18-2010 10:29 PM
Nissan, NEC to Invest $1.1B or More to Increase Li-ion Supply for EVs and HEVs Chromer Non-Subaru News & Rumors 0 12-28-2008 11:20 PM
what clutch/flywheel to use with hybrid 2.2/2.5? opious Subaru Conversions 9 03-28-2006 03:11 AM
Looking to Borrow 1 WRX Stock Rim With Tire WRXcellent Tri-State Area Forum 6 05-20-2004 12:20 PM

All times are GMT -4. The time now is 04:33 PM.

Powered by vBulletin® Version 3.7.0
Copyright ©2000 - 2017, Jelsoft Enterprises Ltd.
Powered by Searchlight © 2017 Axivo Inc.
Copyright ©1999 - 2017, North American Subaru Impreza Owners Club, Inc.