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Mazda Advances $20 Million to Dealers to Cover CARS Rebates

August 21, 2009

IRVINE, Calif. — Mazda North American Operations (MNAO) will issue nearly $20 million worth of advanced payments to its dealers to cover the credits earned during the federal government's “Cash for Clunkers” program.

Payments made by MNAO will be made 20-40 days earlier than anticipated to help improve the cash flow of dealers that haven’t received payment from the government for qualified “Cash for Clunkers” transactions. Advanced payments will be generated and paid to qualifying dealers on or before Wednesday, Aug. 26.

"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," O'Sullivan said.

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Federal Government Will End ‘Cash for Clunkers’ on Monday

The federal government will end the “Cash for Clunkers” program on Monday, August 24 at 8 p.m. EDT.