IRVINE, Calif. -- As the Cash for Clunkers program winds down today, many dealers are complaining about the slow turnaround in government reimbursements for the vehicle rebates they have provided to consumers.
As a result, Mazda North American Operations (MNAO) is issuing advanced payments to its dealers to 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 said it 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,” said Jim O'Sullivan, president and CEO, MNAO. “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."