After announcing some very fuel efficient vehicles (which will not be sold in the U.S. for some reason), Mazda has announced that it needs at least $2.87 billion cash! (early reports from Japan said $1 billion)

For the year 2011, Mazda’s said it expected an annual net loss of about $1 billion (to be officially reported at the end of March).  It would make four years in a row that Mazda has lost big money!

To raise the billions of dollars Mazda needs, they’re issuing more stocks. Officials want to get $2.87 billion for the new stocks, but hope stock prices stay high enough that they would get at least $1.25 billion.  Also, Mazda plans to borrow more than $870 million, on top of the cash raised by stock issues!

Mazda needs the money to increase production, and build a new factory in Mexico.  The majority of Mazda’s new cars will be sold in South America, Australia and Asia, not in the United States.