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Mazda seeks for new partners

By FaezClutchless on 18 Feb 2012

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It is not a secret about Mazda having zero net profit for the past three years and it is likely that the Japanese auto giant is going to go through another year of financial loss. And due to this, Mazda is looking for partners to share development and manufacturing costs so as to return to profitability.

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According to the company’s CEO, Takashi Yamanouchi; Mazda is actively looking for partners and is considering every option in an attempt to raise more capital to prevent a possible downgrade to the company’s credit rating. The company has forecasted a net loss of $1.29 billion for the fiscal year which ends on the 31st of March. This amount will represent the worst financial showing for the automaker in 11 years.

One of the factors that contribute to Mazda’s financial struggle is the continued strength of the Yen. Mazda exports a great amount of its cars from Japan than any other automaker. This result in slim profit margins in its sales results, all due to the country’s strong currency. Another contributed factor is the weak selling models in markets like the United States. Mazda’s imported models such as the Mazda 6 and the Tribute/CX-7 had poor sales in America.

But there is some hope for the Japanese automaker to return to financial profitability. Mazda is building a plant in Mexico to counter the strength of the Yen. The launch of their new CX-5 crossover and the usage of its fuel efficient SkyActiv technology on its models might increase its sales volumes and thus, increase the company’s net profitability.

Mazda has battled alone after former partner; Ford sold most of their shares in the company several years ago. If Mazda can find an automotive partner, the new partner could help Mazda to bear the expenses on some of their expenditures.

Photo credit: Net Car Show

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FaezClutchless
Written by FaezClutchless
Some say that his blood is actually RON98 petrol and some say that his right foot weighs over 20kg. But all that we know about Faez is that he loves to drive and is a JDM enthusiast.



 
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