How to Invest in the Mazda Dealership: How to Get Paid for Your Home
The Mazda Dealers Association says it’s paying its employees to help the company raise money, but its CEO says it has no intention of turning that into profit.
“We’re not making any money from it,” CEO Sergio Marchionne told CNBC’s “Squawk Box” on Tuesday.
Marchionne’s comments came after Mazda announced it had struck a $2 billion deal to buy rival Toyota for $55.2 billion.
The deal is the first of its kind in the auto industry, but the deal may not be a blockbuster success.
The deal will have a huge impact on the company, but it’s unlikely to change its fortunes.
Marchionnne said it’s a “huge deal” for the company but he didn’t elaborate.
The carmaker has struggled to find ways to generate enough cash to fund the new venture, which it hopes will give it the ability to ramp up production and expand its global footprint.
Marchions father, Mario Marchionnte, told the Associated Press that the new partnership would provide a “gold mine” for his son, who will continue to run the company in the new role.
He said the new structure will give the younger CEO more control of the company’s future.
“The new structure I think will give Mario a lot more power, he has to do a lot of things differently, he’s going to have to make a lot less decisions,” Marchionnde said.
Marchio’s comments about profitability were met with some skepticism.
The Associated Press, citing two people familiar with the matter, reported that Marchionno was speaking about the potential to raise more money from shareholders.