Mazda once again finds itself in dire financial straits after warning its investors to expect a loss in 2011 of 100 billion yen ($1.3 billion). In an effort to keep itself afloat, the Japanese automaker is rumored 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 percent.

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 percent of all its vehicles are produced in Japan and 90 percent 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 on 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.


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  • 51 Comments
      MANARC100
      • 2 Years Ago
      Lots of confusion here. The sales volume is not too low to survive. The fact that almost 100% of their products are built in Japan is killing them. When they build a car in Yen then sell it in Dollars or Euros and those currencies are weaker than the yen on a historical basis the profit is wiped away in exchange rates. Huge automakers have factories placed strategically all over the world to hedge against this problem. Mazda did not plan well for this scenario and they are now feeling the pain. The plant in Mexico will help dramatically, probably save the company in the near term. They are going to build the 2 and 3 there and supply all of north and South America from that factory. 40% of the sales in USA are Mazda 3. When those sales become profitable then boom so is Mazda. I believe they have already broken ground on it. This new money will ensure they can complete their product transformation and that factory because they know they will be burning cash on its construction, new tooling for all the new products in the pipe line and the accompanying R&D to bring those to fruition. Mazda will not go the way of SAAB. This primarily is an exchange rate issue not lack of sales. Sorry for the long post just wanted to help the discussion along.
      • 2 Years Ago
      [blocked]
        Basil Exposition
        • 2 Years Ago
        Subaru is partnered with Toyota. Mazda has no partner.
          MotorworldHype
          • 2 Years Ago
          @Basil Exposition
          I do not know why everyone thinks Mazda has no partner. Ford still has a stake in the company it is just significantly lower than it was pre-bailout.
          • 2 Years Ago
          @Basil Exposition
          [blocked]
      Jeff
      • 2 Years Ago
      This is a real shame. I hope things work out, Mazda is the only Japanese car company left that has some soul in most of its cars. Honda, Toyota, Mitsu, Subaru, all have gone soft and mainstream alienating the enthusiast. If Honda still was a powertrain leader, I'd say they could partner up and share production capacity in the US to drive down cost and improve Mazda's powertrain, which has never been that great.
      Seph
      • 2 Years Ago
      I really do hope that there'll be financial institutions, who are willing to invest in them, because I want them to stand on their own. But if there'll no new investors, then I think they should strike partnership with toyota or honda. Also, why Mexico? Why pin hopes solely on the US market? I think Indonesia or Philippines could prove to be a more preferable location for the factories, because soon Indonesia will join the TPP and it can prove strategic for China market.
        Greg
        • 2 Years Ago
        @Seph
        The Mexico plant is intended to supply all of the Americas, not just the US.
      billfrombuckhead
      • 2 Years Ago
      Way too small. Mazda just needs to go away. No business case for this company. They can sell the Miata tooling to the Tata or the Chinese. Might have been neat if they became "Ford of Japan" but the protectionist Japanese never let that happen.
        Phontsolo
        • 2 Years Ago
        @billfrombuckhead
        You're a moron.
        carboy55
        • 2 Years Ago
        @billfrombuckhead
        If Mitsubishi hasn't gone away yet, there's no reason a much more viable Mazda can't come back.
      R3TRO
      • 2 Years Ago
      Let's see... RX8 = early engine failure, horrible gas millage, and expensive repairs Mazda3 = goofy redesign (what were they thinking with that front?) Miata (MX5) = chick car (sorry, but it still is no matter how well it drives) Drop the rotary engine and make a decent rwd sports car. Keep the MX5 as a niche car. PLEASE redesign the MazdaSpeed3 (AWD would be nice since MitsEVO is now going away), Drop the SUV, no one buys it anyway. Keep the CX's jut refine them. Drop the Mazda6, it can't compete in its class.
        z7s7
        • 2 Years Ago
        @R3TRO
        Once you stated a Miata being a chicks car you gave yourself away in confirming you know nothing.
          BrunoT
          • 2 Years Ago
          @z7s7
          Funny, I just watched a sitcom where they made reference to it being proof a guy was a homosexual. So technically you're right. It's not JUST a chick car.
          ابوذر ڀرڳڙي
          • 2 Years Ago
          @z7s7
          Agreed, once he called the Miata a chick car, everything else he said is irrelevant as, clearly, he knows nothing about cars.
        k9182
        • 2 Years Ago
        @R3TRO
        Anyone willing to defend the MX5 is not girly either has no taste or is simply too poor to buy a Z4 or SLK.
          agbullet25
          • 2 Years Ago
          @k9182
          That's the most baseless argument I've ever heard of. When was the last time you saw SCCA championships being won by a Z4 or a hairdresser's SLK?
        agbullet25
        • 2 Years Ago
        @R3TRO
        The rotary engine has already been dropped from production and won't make a return until significant gas mileage and torque gains are found (per Mazda directly). The Miata is not a chick car, but a solid entry-level sports car that has racing pedigree. Making the Mazdaspeed 3 AWD would put the car out of a competitive price range that it sits at now, not to mention Mazda's track record with AWD is not great (read Mazdaspeed 6 axle failure after some semi-high RPM launches). And the CX7 and CX9 are some of their best selling vehicles, not to mention the new CX5 serves as the needed replacement for the old Tribute. And as mentioned above, the 6 only needs a mild refresh on the exterior (which is on the way) and better interior material. Get your facts straight.
      johnbravo6
      • 2 Years Ago
      Alright, they do not make fun driving cars. Except the Rotary and Miata, which have both regressed in the latest iteration. And they are too expensive. Saying a 6 or 3 or any of the S/CUVs is better than the competition is like comparing mayonnaise brands. Only, they're trying to sell hot sauce and wondering why nobody's buying it. You can fool some of the people some of the time, but then your only customers are idiots.
      Shiftright
      • 2 Years Ago
      Don't get it. They make great cars across the board. Not bland enough for the mass market?
        g0t4md
        • 2 Years Ago
        @Shiftright
        Yes. They're one of the only automakers out there that caters to people who actually enjoy driving. Unfortunately, that market is apparently small in the US.
          piggybox
          • 2 Years Ago
          @g0t4md
          The fact is simple: the market for people who enjoy driving is small. To survive in any niche market, you need to ask for a niche market price, otherwise the scale of economy just doesn't work.
      Jimmery
      • 2 Years Ago
      Manufacturer of the best driving cars for the average Jane & Joe. It makes no sense that they are in this position, other than suffering from exchange rates. Sure hope they work this out without having to change what they do.
        caddy-v
        • 2 Years Ago
        @Jimmery
        If they were the best then why the he11 are they in this predicament?
          k_m94
          • 2 Years Ago
          @caddy-v
          Being a driver's car=/=sales. We make up a small niche island of informed car enthusiasts in a sea of people who don't know or give a rat's a** what steering feel and handling mean. Low price, fuel efficiency numbers, brand name, cool features (distractions), and styling matter the most to consumers, roughly in that order.
          Hal Jordan
          • 2 Years Ago
          @caddy-v
          Caddy-v, it's almost like a great movie that nobody watches. The Mazda3 wins pretty much every comparison test it's involved in. There really is no competition for it. I can't remember how many times I've read it's the number one most recommended car by auto journalists to their friends. You can lead a horse to water, but you can't make him drink.
        lemonite
        • 2 Years Ago
        @Jimmery
        I do see a lot of 3s around Boston, but the problem is the 3 appeals to a small population of younger buyers, especially given the car's infamous grin. Lots of frugal retirees buy the Camry for it's size, soft, economical ride - the 6 just doesn't fit their requirements. And, of course, you've got the reputation and many, many years of Honda and Toyota to stand up against. Honda quality may be waning, but it's still hard to go up against the Civic name.
      tnooch1
      • 2 Years Ago
      I wish Ford would have put Lincoln out of its misery, and kept Volvo and Mazda. I used to think I that the newer "smiling" Mazda grills were among the worst, until I saw the current Ford Focus. But wait, there are still the Lincoln grills to cause me to throw up in my mouth just a little bit.
      Karl T
      • 2 Years Ago
      If they could learn to add some quality materials and construction, the Zoom Zoom might mean more. I've got an '05 Mazda6 and the interior quality is @#%!. The materials AND assembly. And the current cars are barely any better. They may have better materials in places, but the assembly is still the Lego approach. It's pathetic that so many interior panels are simply snapped together.
      Spartan
      • 2 Years Ago
      Every time I say Mazda's in trouble, I get down-voted to oblivion. ♫ DOOM DOOM ♫
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