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MAZDA TO ADVANCE $20 MILLION TO DEALERS AS A RESULT OF MONEY NOT YET PAID BY CARS PROGRAM
Aug 21, 2009
IRVINE, Calif. (August 21, 2009) - Mazda North American Operations (MNAO) announced today that it will issue advanced payments to its dealers that the company believes will more than cover the credits earned during the federal government's Cash for Clunkers (CARS) program. Payments made by MNAO, expected to total $20 million, will be made 20-40 days earlier than anticipated to help improve the cash flow of dealers that have yet to receive payment from the government for qualified Cash for Clunkers transactions. Advanced payments will be generated and paid to qualifying dealers on or before Wednesday, August 26th.
"Mazda is committed to supporting our dealer body and doing whatever is feasible to make them successful," said Jim O'Sullivan, president and CEO, MNAO. "The early cash flow will support our dealers who are benefiting from the sales related to the Cash for Clunkers program and have yet to receive funds from the government. This will give them the confidence and ability to succeed through the end of the program on Monday."
Mazda has seen a marked increase in showroom traffic as a result of the Cash for Clunkers program. Fifty-nine percent of the Mazdas sold under the program have been MAZDA3s, the company's most fuel-efficient vehicle.
"We're obviously very pleased by the sales improvement the Cash for Clunkers program has provided. Just as exciting is the positive environmental impact it's having. Our dealers are reporting that cars like the MAZDA3, which gets up to 33 miles per gallon on the highway, are replacing vehicles that in some cases don't make one third of the mileage," said O'Sullivan.
Headquartered in Irvine, Calif., Mazda North American Operations oversees the sales, marketing, parts and customer service support of Mazda vehicles in the United States, Canada and Mexico through nearly 900 dealers. Operations in Canada are managed by Mazda Canada, Inc., located in Ontario, Canada, and in Mexico by Mazda Motor de Mexico in Mexico City.