Read Larry Connors' blog – Short Term Trading Strategies
Hiroshima Prefecture-based Mazda said Monday it would increase capital through a public offering of more than 20 percent of its issued shares and raise as much as 96 billion yen.
Of the 96 billion yen, the automaker plans to spend 60 billion yen on the research and development of eco-friendly cars and vehicles equipped with improved safety features.
A focus of attention in the days ahead will be its strategy of forming alliances with rivals that have taken the lead in the field of eco-friendly vehicles.
The domestic market for new cars is increasingly leaning toward environmentally friendly models, such as Toyota Motor Corp.'s Prius and Honda Motor Co.'s Insight. Such hybrid cars are becoming more affordable and customers are also aided by government tax incentives and subsidies.
The government has cut the car acquisition tax and the car weight tax on new eco-friendly vehicles. In addition, consumers who purchase a new car that fulfills fuel-efficiency and emissions criteria get a rebate of up to 250,000 yen.
Mazda has developed a hybrid model with Ford Motor Co. and put them on limited sale in the United States in 2007, but it has never attempted to mass-produce hybrid cars on its own.
To survive in the competitive car market, Mazda will need to offer a variety of fuel-efficient cars, including hybrids, but it faces too many hurdles to develop the necessary technology alone.
Developing such technology is expensive, and patents on key technologies are already held by Toyota and other rivals.
Meanwhile Ford, which Mazda has previously worked with, has reduced its stake in Mazda from about 33 percent to about 13 percent, as a measure to help it ride out the global financial crisis.
Following Ford's divestment, Mazda reportedly asked Toyota to act as an original equipment manufacturer to provide it with core hybrid technology, such as the motor and control system.
While Toyota sees the demand for its hybrids surpass its production capacity, it reportedly sees some benefits from the proposed tie-up with Mazda. So the tie-up strategy over eco-friendly technology is expected to accelerate.
To see more of The Yomiuri Shimbun, or to subscribe to the newspaper, go to http://www.yomiuri.co.jp and www.yomiuri.co.jp/index-e.htm Copyright (c) 2009, The Yomiuri Shimbun Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
