IRVINE, CA - Mazda plans to raise $1 billion (96 billion yen) by selling new shares and treasury stock in order to pump more money into developing hybrid cars and other fuel-efficient vehicles, CBS News and Financial Times reported this week.
The automaker will issue 363 million new shares. That's about one-fourth of its current outstanding stock. In addition, Mazda will sell 96.8 million shares acquired last year from Ford.
About two-thirds of the funds will go toward developing safer and more fuel-efficient cars. Mazda now offers just one hybrid car, the Tribute, which uses technology developed by Ford. The rest of the funds will be channeled toward general capital investment, CBS News reported.
The automaker rebounded in the second quarter, returning to profitability at the operating level.