Mazda Motor shares on Tokyo Stock Exchange jump 14% to 138 yen in the wake of rumors that reveal that the automaker, in great financial difficulties, is about to raise 100 billion yen (950 million euros) through the issue of new shares. The group would like to raise funds from the market as it is under pressure from a particularly strong yen and slowing global demand. Mazda also intends to take out subordinated loans totaling 70 billion yen. The news comes to the market a few weeks after the group announced it expected losses of 100 billion yen in the fiscal year ending in March.
With the new capital, Mazda, the fifth largest Japanese automakerwould intend to open new production plants and increase its presence in foreign markets, especially in those of emerging economies such as Mexico.
The rumors have not been confirmed by the auto company. Japanese automakers are under increasing pressure due to a skyrocketing yen that makes exports from the Japanese country less competitive. This trend has led many companies in the sector to move production abroad. Mazda plans to open factories in Mexico and Russia.
