Mazda to raise funds to develop more fuel-efficient technologies

Mazda plans to raise funds through a new share issuance, partly to develop technologies to improve the fuel efficiency of its vehicles, as Ford further reduces its stake in the company. Encouraged by a less-downbeat outlook for its financial results for the current fiscal year, the carmaker said it planned to issue 315.2 million new shares and was setting aside an additional 48 million shares under an overallotment arrangement, in case of exceptionally strong demand. Last year, Ford reduced its stake in Mazda as part of its restructuring plans. The latest fund-raising is part of the Japanese carmaker’s plans to spend 292 billion yen (US$3.25 billion) on research and development operations and 150 billion yen (US$1.67 billion) on capital investments over the three years ending in March 2012. Of the total, Mazda aims to use 60 billion yen (US$668.71 million) to develop technologies to improve fuel efficiency, with the rest to be spent to upgrade facilities. (October 7, 2009)