Seattlepi

Mazda shares dive after announcing $2B share sale


breakingseanews0 retweets
Mazda shares dive after announcing $2B share sale

Updated 07:39 p.m., Wednesday, February 22, 2012

Page 1 of 1

TOKYO (AP) — Mazda stock dived nearly 7 percent Thursday after the struggling car maker said it will raise about $2 billion from selling new shares to invest in assembly plants and developing new vehicle technologies.

The Japanese company, which makes the Miata sports car, said in a statement it aims to have half of its vehicle production based overseas by early 2016 as part of plans to make its business more competitive.

Mazda's earnings have been hurt the yen's sharp rise, the tsunami disaster last year in Japan, flooding in Thailand and the European debt crisis. Its shares were down 6.8 percent at 37 yen in Tokyo.

Of the 163 billion yen ($2 billion) it hopes to raise from the share sale, some 93 billion yen will be allocated to developing auto technologies focused on fuel efficiency and safety.

The rest will go toward building new car and engine assembly factories in Mexico and upgrading existing assembly lines in Russia, China, Japan and Southeast Asia.

The automaker plans to introduce eight new vehicles by early 2016 using its "Skyactiv" technology that improves fuel efficiency by 20 percent to 30 percent compared with older models.

It said it continues to seek alliances with other automakers overseas.

Mazda, which has lost money for the last three fiscal years, is struggling to assert its brand as the relationship with longtime partner Ford Motor Co. withers.

Dearborn-based Ford bought 25 percent of Mazda in 1979, raising it to 33.4 percent in 1996. But Ford began cutting ties in 2008, and in 2010 lowered its ownership to 3.5 percent.

Mazda does not have flashy green technologies in its lineup that its bigger Japanese rivals do — such as the hybrids at Toyota Motor Corp. or electric vehicles at Nissan Motor Co.

Apart from the share sale, Mazda is planning to borrow 70 billion yen to repay existing loans.

Send comments to newmedia@seattlepi.com

© 2012 Hearst Communications Inc.

Business in images

Twitpic - Share photos and videos on Twitter

http://twitpic.com/5968wo

Twitpic - Share photos and videos on Twitter
We're an indi publisher focused on a wide range of topics, motivated by curiosity about life and a passion for words.

Picture of daguilar6
12 Aug 2011
3K retweets

ian somerhalder's Twitter Photo

http://twitter.com/iansomerhalder...

ian somerhalder's Twitter Photo
Damon in makeup on a business call... He's back! http://t.co/84mOrIuy

Picture of daguilar6
12 Jul 2012
8K retweets

Joseph Morgan's Twitter Photo

Picture of daguilar6
23 Mar 2012
7K retweets
This is family business. #theoriginals

Business in videos

FORTUNE'S Business Person of the Year

Picture of daguilar6
9 Nov 2012
1K retweets
Round 1 of the #BizPOY Reader's Choice is up. Watch this fight card preview

CKA Video

Picture of daguilar6
13 Sep 2012
1K retweets
irishbizparty We're a business support Co. providing & specialising in Sales Marketing, HR & PR supports See us here

How to Start a Business -- Tips for Starting a Busine...

Picture of daguilar6
12 Sep 2012
1K retweets
I liked a @YouTube video from @mepragency Kia Jarmon--ME Factor Business Segment--How to St

Business in articles

bts odonnell coons debate wdel

Picture of daguilar6
2 Oct 2012
6K retweets
Boy sells honey to vodka company: A Texas boy starts a honey-making business in his backyard and turns it into a...

Los Angeles Career Expo Presented by JobsDirectUSA.co...

Picture of daguilar6
23 Dec 2011
2K retweets
orangecounty #jobs RECEPTIONIST - Oce Business Services - Irvine, CA

You can stick it

Picture of daguilar6
7 Mar 2012
6K retweets
Subvertising at its best. Vodafone's business strategy remodelled

Business in sites

What is a Search Engine? Marketing Local Business Onl...

http://mdsresource.net/2010/06/wh...

What is a Search Engine? Marketing Local Business Online
2010 June 8 by helices Why does the Search Engine matter to you and your Local Business? Welcome to the Brilliant Ideas About Internet and Money Frequently Asked Questions Series, Part 4: What is a Search Engine? Search Engine Marketing Is Marketing Local Business Online “Permission marketing is the privilege (not the right) of delivering anticipated, personal and relevant messages to people who actually want to get them.” Marketing Local Business online demands a rigorous understanding of how best...

Picture of daguilar6
11 May 2012
6K retweets

Twittascope - Scorpio Horoscope for August 5, 2011

Picture of daguilar6
18 Mar 2010
3K retweets
Emotional spring cleaning may be your order of business today ... More for Scorpio

Online Database of Social Media Policies

Picture of daguilar6
21 Aug 2009
2K retweets
HUGE list of social media policies (mostly business), could be helpful... #nonprofit