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.

I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.

    • 1 Second Ago
  • 2016 Mazda CX-5
    MSRP: $21,795 - $29,470
    2016 Mazda Mazda6
    MSRP: $21,495 - $30,195
    2016 Mazda CX-3
    MSRP: $19,960 - $26,240
    2016 Mazda Mazda3
    MSRP: $17,845 - $25,495
    2016 Mazda MX-5 Miata
    MSRP: $24,915 - $30,065
    Share This Photo X