Mazda to sell additional shares of stock to raise $1.1 Billion for Hybrid Development

Mazda is planning to invest near $1.1 billion in the development of hybrid vehicles and other technologies, Automotive News reports. The automaker will raise the funds by offering 315.2 million new shares of stock to the public and selling 96.8 million treasury shares.

As early as March, the automaker had resisted hybrid development, focusing instead on weight reduction and improving drivetrain efficiency. But, as we reported in April, Japan's fifth-largest automaker changed course. Mazda now aims to introduce hybrid technologies by 2015 as part of its drive to increase corporate fuel economy by 30%. Gasoline-electric vehicles have become immensely popular in Japan because of tax breaks aimed to increase the number of fuel-efficient vehicles on the road.


The resulting increase in capital from the stock sale will dilute Ford's interest in the Japanese automaker to roughly 11%, down from 13.8%, though Ford will continue to be Mazda's largest shareholder. Operations between the two brands are expected to proceed as usual.


Mazda Throwing Nearly $1.1 Billion on Hybrid Bandwagon - Wide Open Throttle - Motor Trend Magazine

 

This is a double strategy. Part of their motive is to dilute the percentage of Mazda that is owned by Ford. I think this is a "two birds, one stone" move. I hope the hybrids take off huge. A good friend of mine just bought a brand new Mazdaspeed 3, and I have to tell you it is a REALLY nice car. Often, the nicest product available is not always the most expensive. I've sat in certain luxury car models and the interior just didn't do anything for me, and then I've sat in non-luxury cars and instantly I've said "this is a really nice interior." I think Mazda has one of the best overall cars right now (I have only been inside his car at night, so I'm only basing my viewpoint on that). But I've seen many on the roads lately, and the exterior looks great.
That's one thing I really like about my Corolla - I love the interior dash. It doesn't have leather or anything extra fancy, but it feels natural. Some interior designs just look awkward! Not to mention names, but there are some luxury cars that have been redesigned and the previous interior shape was very relaxing and looked/felt great, but the newer version looks/feels awkward/un-natural.