Mazda announces share sale to fund hybrid plans

With Ford selling off most of its 33 per cent holding, Mazda has announced a hefty share sale to help fund its future hybrid powertrain plans.

The sale, by which Mazda plans to raise up to US$1.1 billion, will fund the company's bid to catch up as rivals Toyota and Honda surge ahead in new markets for hybrid vehicles.

Mazda has watched from the sidelines as those companies reap the benefits of tax breaks around the world for those who buy into clean automotive technologies like hybrids and EVs.

Japan particularly has seen massive growth. When it went on sale in February, Honda's Insight reached its first-month sales target of 5000 in a week, with sales tripling expectations in its first six weeks. By April it was Japan's best-selling car.

Tax incentives have seen hybrids rise in popularity in the US, too -- also important as Mazda's biggest market in outright sales numbers.

Mazda has said its alternative powertrain strategy will take the form of a gradual phase-in of electric components to its drivetrain range, alongside fuel economy improvements of 30 per cent across its petrol and diesel fleet by 2015 -- by which time Toyota has promised to expand its fleet to include EVs and hydrogen fuel cell hybrids.

With long-time technology partner and 33 per cent shareholder Ford cutting its former 33 per cent controlling stake to 13.8 per cent last year amid the haemorrhage of the GFC, Japan's fifth largest carmaker has had to look elsewhere to help capitalise its future powertrain diversification plans.

The capital injection is expected to further reduce Ford's holding to around 11 per cent, but Mazda has told media the relationship between Mazda and Ford will otherwise be unaffected, with Ford remaining the company's largest single shareholder.

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