Troubled Mazda looking to raise $2B in shares, fund Mexico plant

Mazda once again finds itself in dire financial straits after warning its investors to expect a loss in 2011 of 100 billion yen ($1.3 billion). In an effort to keep itself afloat, the Japanese automaker is rumored to be considering a new issue of as many as 690 million shares, which would raise about 100 billion yen while diluting current share value by a massive 38.7 percent. In addition, Mazda is thought to be seeking loans of 70 billion yen from a number of Japanese banks. A good portion of these funds are necessary to bolster Mazda's overseas production facilities.

Autoblog, Troubled Mazda looking to raise $2B in shares, fund Mexico plant