By Nat ShirleyThursday, Feb 9th, 2012 @ 10:17 am
Facing what will likely be its fourth straight year of financial losses, Mazda is seeking partners to share development and manufacturing costs as the company tries to return to profitability.
Mazda CEO Takashi Yamanouchi says the company is “actively” seeking partners and is “considering every option” in an attempt to raise more capital to stave off a possible downgrade to its credit rating, Automotive News reports. Mazda has forecast a net loss of $1.29 billion for the fiscal year ending March 31, which would represent the automaker’s worst financial showing in 11 years.
Mazda’s struggles are partially attributable to the continued strength of the yen – Mazda exports a greater percentage of its vehicles from Japan than any other automaker, meaning more of its sales result in slim profit margins because of the unfriendly home currency. Another issue lies with several weak-selling products – in America, Madza’s entrants in the all-import midsize sedan and small crossover segments, the Mazda6 and Tribute/CX-7, have largely been sales disappointments.
Still, there is plenty of potential for the Zoom-Zoom automaker to return to financial health. The company is building a plant in Mexico to counter the strength of the yen, and its sales fortunes could soon improve with the launch of the new CX-5 crossover and as its fuel-efficient SkyActiv technology continues to spread throughout the model range.
A partner to help defray costs would also be an asset – Mazda has been going it alone since former partner Ford sold its shares in the Japanese automaker over the past few years.
Mazda’s struggles are partially attributable to the continued strength of the yen – Mazda exports a greater percentage of its vehicles from Japan than any other automaker, meaning more of its sales result in slim profit margins because of the unfriendly home currency. Another issue lies with several weak-selling products – in America, Madza’s entrants in the all-import midsize sedan and small crossover segments, the Mazda6 and Tribute/CX-7, have largely been sales disappointments.
Still, there is plenty of potential for the Zoom-Zoom automaker to return to financial health. The company is building a plant in Mexico to counter the strength of the yen, and its sales fortunes could soon improve with the launch of the new CX-5 crossover and as its fuel-efficient SkyActiv technology continues to spread throughout the model range.
A partner to help defray costs would also be an asset – Mazda has been going it alone since former partner Ford sold its shares in the Japanese automaker over the past few years.
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