TOP 100 RACING SITES
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| Mazda's stock surges It's been a miserable few months for Japan's automakers and Mazda is no exception. On Mar. 3, its stock reached a three-decade low amid concerns over its finances. Like all Japanese automakers, Mazda has been hurting due to the strong yen and slumping global demand for cars. Last month, Mazda reversed projections for a profit and said it would join Toyota, Nissan and others and make an annual loss.Since then, though, there have has been something of a rebound. By the end of last week, Mazda's stock had risen 20% since the recent lows. On Mar. 13 it jumped 7.5% after the Hiroshima-based automaker said it would reverse some production cuts. Today, the stock surged again, gaining 8.4%, after Deutsche Securities raised its stock rating for the company to a "buy". Deutsche's Tokyo auto analyst Kurt Sanger notes that the company will benefit from the imminent introduction of the new Mazda3 following the launches of new versions of its other stronger sellers, the Mazda2 and Mazda6, in the last two years. The Mazda3, known as the Axela in Japan, accounts for about a third of Mazda's global sales. "Much of the heavy-lifting for core models is behind it leaving Mazda better able to adjust R&D and capex without threatening its near-term competitiveness," Sanger wrote in a note to clients. Deutsche has given Mazda a target price of 180 yen, which would be its highest level since late October. It closed today at 155 yen. Like other Japanese automakers, Mazda will also benefit from the speed with which it moved to cut production--and reduce mounting inventories--in January and February. In January, its domestic production slumped 66.2% from a year earlier to 31,130 units, while exports, at 20,207, were down 72.1%. In both cases, that's faster than sales fell. Over the weekend, reports in the Japanese media speculated that Mazda will increase Japan production by about 10,000 vehicles a month from current levels by July. According to the Nikkei, Mazda will restart production on Fridays two times a month from April and return to regular working hours at its Japan plants in the summer. Of course, with the global economy showing few signs of bottoming out, it's tough to be optimistic. One big problem faced by Mazda, which has the second lowest credit rating among Japanese carmakers, is the difficulty of raising funds--the company has said it may have to tap government aid to raise finance. And another surge in the yen, which has weakened in recent weeks, would be very hard for Mazda, which has fewer plants outside Japan than rivals, to stomach. Yet with inventory levels seemingly under control and its hottest selling model on the way, a recovery of sorts seems to be underway. rss.businessweek.com |
Former Indy driver, broadcaster Larry Rice dies at 63 Former USAC champion and 1978 Indy 500 co-rookie of the year Larry Rice has died of lung cancer. He was 63. Rice shared 1978 ... rssfeeds.usatoday.com |
Ferrari Driver Fractures His Skull The driver Felipe Massa crashed his Ferrari on Saturday during qualifying for the Hungarian Grand Prix. nytimes.com |
Logano rolls with the punches after scary tumble at Dover Early morning shows were two of many media requests asking for interviews about my wreck Sunday at Dover International Speedway, ... rssfeeds.usatoday.com |
Detroit Auto Show: Nissan's green strategy is to go to zero If there a lesson that the auto industry has learned about selling hybrid-electric cars, it’s that it’s tough to take on Toyota. The Japanese giant sold almost 12,000 copies of the Prius in December next to about 1,600 for Honda’s Insight, which is also a dedicated hybrid. Other companies are taking notice. In November, General Motors shelved plans to build a Prius fighter for its Chevrolet division that would have targeted 50 miles per gallon, preferring to focus on its Chevrolet Volt electric car. Similarly, Nissan is looking at its Leaf electric car as its best green play. The company has a hybrid Altima and will launch a gasoline-electric version of its Infiniti M sedan in March 2011. But the company’s biggest plan is for the Leaf, said Carlos Tavares, executive vice president for Nissan Motor Co, during an interview at the Detroit auto show. “Only the leader wins,” Tavares said. “We know who has taken the leadership position, it’s Toyota. That’s why we decided to go to the ultimate goal of zero emissions.” Nissan figures it can establish a lead in electric vehicles with its Leaf EV, which goes on sale in December. Tavares said Nissan has already had 35,000 people express interest in the car. That is a good indicator that they can sell the car successfully, he said. But Nissan will have a better idea once they start taking deposits this spring. The company’s aspirations are huge. Nissan’s plant in Smyrna can build up to 150,000 of the Leaf when it starts production in late 2012. The first car will come from a plant in Japan. Tavares said it will be competitively priced with other compact cars. But selling 150,000 cars will be tough. The car can go 100 miles on a charge, which will limit its appeal. To give you an idea, Nissan sold fewer than 10,000 Altima hybrids last year and Toyota sold 140,000 Priuses. Nissan is taking a different road, but selling all that the company produce won’t be an easy ride. rss.businessweek.com |