Autoblog

Over 100 take buyouts at Mazda USA ahead of layoffs

Jonathon Ramsey — Mon, 07 May 2012 10:14:00 EST

Filed under: Hirings/Firings/Layoffs, Mazda, Earnings/Financials

Mazda sales are up 22 percent this year, but the company's American operation is enduring acute pain. It is in the midst of a complete, five-month reorganization while trying to raise funds and shrink its workforce. In March, Mazda announced its intention to offer voluntary buyouts to its U.S. employees, after which it would assess the plan and then lay off other workers if needed. Of the firm's 701 local workers, 107 have accepted the voluntary buyout.

Having seen its North American year-over-year operating loss swell by more than 25 percent to $505 million from $397 million, every aspect of the company has come under review. Mazda has said it doesn't know if involuntary layoffs will be necessary yet, but CEO Takashi Yamanouchi does know this: "It's a must-win situation."

Over 100 take buyouts at Mazda USA ahead of layoffs originally appeared on Autoblog on Mon, 07 May 2012 10:14:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Mazda looking to shrink U.S. workforce by offering buyouts, layoffs possible

Jonathon Ramsey — Mon, 12 Mar 2012 11:31:00 EST

Filed under: Plants/Manufacturing, Technology, Mazda, Earnings/Financials

Mazda is taking the steps necessary to right its financial ship, but when a patient has this kind of issue, the cure can hurt just as much. The small, independent carmaker has been hurt by its relatively Japan-centric manufacturing base and the strength of the yen, the loss of Ford as a noteworthy stakeholder and the resulting loss of financial cushion. Mazda is expected to post a $1.2 billion loss for its 2011 financial year, which is smaller than earlier estimates but it's still the fourth losing year in a row and the largest in a decade.

The need to act has forced Mazda North America into a five-month plan to shed a number of its 701 employees for leaner running. Select employees will be offered a buyout package, and if voluntary uptake isn't sufficient then involuntary dismissals will occur. The timeline begins this month with lump-sum offers, followed by layoffs at the end of May if necessary, and the stretch to August will see the transition of personnel into the restructured organization.

Mazda is also issuing shares to raise $1.9 billion in order to aid its position and get production started in Mexico and Thailand. It is also aggressively seeking a partner and considering licensing its SkyActiv technology.

Mazda looking to shrink U.S. workforce by offering buyouts, layoffs possible originally appeared on Autoblog on Mon, 12 Mar 2012 11:31:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Troubled Mazda looking to raise $2B in shares, fund Mexico plant

Jeremy Korzeniewski — Tue, 21 Feb 2012 17:28:00 EST

Filed under: Japan, Mazda, Earnings/Financials

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.

Troubled Mazda looking to raise $2B in shares, fund Mexico plant originally appeared on Autoblog on Tue, 21 Feb 2012 17:28:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

After another bad year, Mazda hunting for partners, could license Skyactiv

Jeremy Korzeniewski — Tue, 14 Feb 2012 09:30:00 EST

Filed under: Japan, Mazda, Earnings/Financials

Mazda builds and exports more vehicles from Japan by percentage of total volume than any other automaker, which means it has been hit harder than most by the strength of the Japanese yen. Compounding matters further, between 2008 and 2010, Ford reduced its stake in Mazda from a controlling 33-percent share to less than four percent, meaning the automaker doesn't have any extra-deep pockets to help bridge the financial gap until profits improve and a North American factory located in Mexico is completed.

The results of this perfect financial storm have been predictable: Mazda posted a net loss in 2011 of about $1.29 billion, marking the fourth consecutive year of red ink and the largest loss since 2001. That's all very bad news for any automaker, but especially so for one as small and independent as Mazda. As such, it's no surprise that Mazda CEO Takashi Yamanouchi has said that his company is "actively" seeking partners and that "every option" is being considered.

Naturally, considering "every option" includes the potential of licensing its lightweight and efficient Skyactiv fuel-saving technology to other automakers. In any case, after already losing the rotary (for now, at least) the thought of an automotive world without the MX-5 makes us shudder. Here's hoping Mazda regains its financial footing before anything drastic happens.

After another bad year, Mazda hunting for partners, could license Skyactiv originally appeared on Autoblog on Tue, 14 Feb 2012 09:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments