Palso Cars!

All the auto news you can handle!
You are here: Posts → Mazda needs $1 Billion funding for production of hybrid vehicles

Mazda needs $1 Billion funding for production of hybrid vehicles

Mazda plans to raise about $1 Billion to help push for the development of their new hybrid vehicles and future technologies. The Japanese car manufacturer hopes to beef up their funds by selling treasury stocks and new shares.

A reliable source from Mazda was quoted in some reports that it will issue around 363 million shares of the company. This figure translates to about 25% of the existing stock of the carmaker. There are also some information that it will be selling 96.8 million shares it acquired from majority stakeholder Ford.

Mazda did not show early interest on developing hybrid or electric vehicles like the other Japanese car manufacturers. The North American division of the company categorically declared that they will not go into production of such vehicles if they are not sure if it will click with the market. As the demand for greener vehicles becomes the trend, Mazda changed its view and is hoping to produce hybrid units soon.

Mazda Hydrogen Hybrid

About 65% of the $1 Billion fund will be allotted to safety technology and environment-related developments. The rest of the funds will be used to upgrade their factories, facilities, and push for their other capital expenditures.

Mazda is not that late in the race even though competitors like Toyota and Honda have earlier initiatives to design and produce hybrid and electric vehicles that will be safe for everyday use and affordable to the public. The sudden change of heart by Mazda is inevitable since they eventually need to cater to the demand of the public and meet the stricter laws being imposed by different countries on fuel mileage and emission of harmful gases. No news has yet about specific dates I’ll be able to go for a test-drive in my local Los Angeles Mazda Service station

Leave a Reply