Hoping to rebound from what will likely be its worst annual performance in 11 years, Mazda will seek to raise $2.1 billion in order to strengthen its finances and build a new plant in Mexico.
The automaker, which has predicted a loss of $1.29 billion for the fiscal year ending March 31, will try to raise $1.21 billion through loans and the remainder from a public share offering, according to a Reuters report.
Mazda plans to use the funds to build a new manufacturing plant in Mexico and renovate its Thai factory. Those moves will allow the struggling company to move production out of Japan and thus sidestep the profit-robbing strength of the yen. Mazda currently builds 70 percent of its vehicles in Japan, a greater percentage than any other automaker.
Earlier this month, Mazda announced that it was searching for a partner company to share development and manufacturing costs. Mazda has been independent since former partner Ford sold its shares in the Japanese automaker over the past few years.
