Mazda raises over $1bn in shares sale to fund investment in greener cars
Mon 05 October 2009
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Mazda Motors, the mid-sized Japanese carmaker, said it would raise Y96bn (US$1.1bn) through a sale of new shares and treasury stock to fund development of hybrid cars and other lower carbon vehicles. Mazda said it would increase capital through a public offering of more than 20 percent of its issued shares, according to a Financial Times report.
Mazda, which is trying to close the gap with Toyota and Honda, says it plans to spend 60 billion yen on the research and development of lower carbon cars and vehicles equipped with improved safety features, . Mazda currently offers just one hybrid car – the Tribute – which uses technology developed by Ford.
Meanwhile, the Japanese government has cut the car purchase tax and the car weight tax on new 'greener' vehicles. In addition, consumers who purchase a new car that fulfills fuel-efficiency and emissions criteria get a rebate of up to 250,000 yen.
The share issue would cut Ford's voting stake in Mazda to 11.03% from a current 14.91%. Last year, Ford disposed of part of its stake in Mazda as part of its restructuring plans.
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