Mazda fronts $20 million to dealers waiting on "clunkers" checks
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From: portland oregon
Mazda fronts $20 million to dealers waiting on "clunkers" checks
With the clunkers money being so long in coming it is putting many dealers in a bind for their flooring payments. Flooring, for people that don't know, is money loaned to the dealers to pay for cars to get them to the showroom that the dealers have to pay back as soon as the car sells.
So the delayed payments by the fed puts the dealers in a cash flow bind making it difficult to pay the flooring lenders. Mazda is stepping up to help its dealers -fronting $20 million dollars in accelerated payments to help improve the dealer's cash flow while they wait for those government checks. Nice job their federal government
http://news.prnewswire.com/DisplayRe...5081340&EDATE=
So the delayed payments by the fed puts the dealers in a cash flow bind making it difficult to pay the flooring lenders. Mazda is stepping up to help its dealers -fronting $20 million dollars in accelerated payments to help improve the dealer's cash flow while they wait for those government checks. Nice job their federal government
http://news.prnewswire.com/DisplayRe...5081340&EDATE=
IRVINE, Calif., Aug. 21 /PRNewswire/ -- 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.
"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.
I can't believe that people actually expect to get this money returned within 1 or 2 weeks. It's a "rebate". Most rebates take 6 to 8 weeks at least. Give it some time.
Use some of that money you received from selling all those damn cars.
It was a good program, probably the best idea out of the Government in 10 years running.
Edit- WTG Mazda!
Use some of that money you received from selling all those damn cars.
It was a good program, probably the best idea out of the Government in 10 years running.
Edit- WTG Mazda!
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Joined: Jun 2007
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From: Sheboygan Falls, Wisconsin
And now that a lot of the pent up demand for new cars has been satisfied, look for showroom traffic and sales to be even worse than they were before cash for clunkers. Now manufacturers will probably have to offer huge rebates on pretty much everything to move cars.
Good for Mazda backing up their dealers.
I just struggle to aplaud other companies like GM and Hyundai, who have actually re-opened plants and rehired workers "to meet demand"...when I would guess that all vehicles sold under this program were already on the lot wasting away. So ramping up production just refills the dealer lots. Didn't they all say that there was too much overhead? Need to be slimmer or something? Shoulda used this to burn off inventory to keep current volume lower, less operating costs.
I just struggle to aplaud other companies like GM and Hyundai, who have actually re-opened plants and rehired workers "to meet demand"...when I would guess that all vehicles sold under this program were already on the lot wasting away. So ramping up production just refills the dealer lots. Didn't they all say that there was too much overhead? Need to be slimmer or something? Shoulda used this to burn off inventory to keep current volume lower, less operating costs.
3-wheeler
Joined: Dec 2005
Posts: 2,734
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From: Phoenix
The cash for clunkers, while good on the surface, will turn out to be much more harmful to the auto industry than helpful.
This wouldn't be an issue per say if the government cut checks to the customers instead of the dealerships. We're not talking about a few thousand dollars here we are talking hundreds of thousands and in some cases millions of dollars of outstanding payments owed to dealerships. Until that money is paid the dealer has to absorb the loss. They still have cars to buy to replace sold inventory and they have sales people to pay as well.
Take note everyone. The fact that the government cannot even handle a $3 Billion dollar program shows that it's completly incapable of handling the 17% GDP that is made up by our health care industry.
Exactly! Now all these people who might have bought cars later won't be looking to buy. So they burned all that demand which might have been useful later on down the road. Also the fact that this was done mostly to keep people working will also backfire because those plants will shut down anyway cause of reduced demand.
The best way to stimulate any economy is to put the money in the hands of the buying public. This came close but in the end it's going to cause more harm than good.
This wouldn't be an issue per say if the government cut checks to the customers instead of the dealerships. We're not talking about a few thousand dollars here we are talking hundreds of thousands and in some cases millions of dollars of outstanding payments owed to dealerships. Until that money is paid the dealer has to absorb the loss. They still have cars to buy to replace sold inventory and they have sales people to pay as well.
Take note everyone. The fact that the government cannot even handle a $3 Billion dollar program shows that it's completly incapable of handling the 17% GDP that is made up by our health care industry.
And now that a lot of the pent up demand for new cars has been satisfied, look for showroom traffic and sales to be even worse than they were before cash for clunkers. Now manufacturers will probably have to offer huge rebates on pretty much everything to move cars.
The best way to stimulate any economy is to put the money in the hands of the buying public. This came close but in the end it's going to cause more harm than good.
I agree that CARS program did more harm than good and it will be proven in the months to come.
I believe we soon will hit the worst part of this recession. I live in the DC metro area and our big thing to talk about is politics... Go figure. Give it till first couple weeks of December where many more people will loose jobs. Christmas season forget it, not gonna happen this year. Alcohol, cigarettes, drug sales will all skyrocket more than they have now.
Just hope to god "Obamacare" doesn't get passed. That would be hell for our country. And 35% of your pay would be taxes to support his so called "genius plan".
I believe we soon will hit the worst part of this recession. I live in the DC metro area and our big thing to talk about is politics... Go figure. Give it till first couple weeks of December where many more people will loose jobs. Christmas season forget it, not gonna happen this year. Alcohol, cigarettes, drug sales will all skyrocket more than they have now.
Just hope to god "Obamacare" doesn't get passed. That would be hell for our country. And 35% of your pay would be taxes to support his so called "genius plan".
Yea were changing alright. Slowly into a government controlled country. Do I hear "Socialism"...
There's already talk in Washington about the removal of the 2nd amendment in our very own constitution.
There's already talk in Washington about the removal of the 2nd amendment in our very own constitution.
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Joined: Apr 2005
Posts: 10,880
Likes: 340
From: Australia
The cash for clunkers, while good on the surface, will turn out to be much more harmful to the auto industry than helpful.
This wouldn't be an issue per say if the government cut checks to the customers instead of the dealerships. We're not talking about a few thousand dollars here we are talking hundreds of thousands and in some cases millions of dollars of outstanding payments owed to dealerships. Until that money is paid the dealer has to absorb the loss. They still have cars to buy to replace sold inventory and they have sales people to pay as well.
Take note everyone. The fact that the government cannot even handle a $3 Billion dollar program shows that it's completly incapable of handling the 17% GDP that is made up by our health care industry.
Exactly! Now all these people who might have bought cars later won't be looking to buy. So they burned all that demand which might have been useful later on down the road. Also the fact that this was done mostly to keep people working will also backfire because those plants will shut down anyway cause of reduced demand.
The best way to stimulate any economy is to put the money in the hands of the buying public. This came close but in the end it's going to cause more harm than good.
This wouldn't be an issue per say if the government cut checks to the customers instead of the dealerships. We're not talking about a few thousand dollars here we are talking hundreds of thousands and in some cases millions of dollars of outstanding payments owed to dealerships. Until that money is paid the dealer has to absorb the loss. They still have cars to buy to replace sold inventory and they have sales people to pay as well.
Take note everyone. The fact that the government cannot even handle a $3 Billion dollar program shows that it's completly incapable of handling the 17% GDP that is made up by our health care industry.
Exactly! Now all these people who might have bought cars later won't be looking to buy. So they burned all that demand which might have been useful later on down the road. Also the fact that this was done mostly to keep people working will also backfire because those plants will shut down anyway cause of reduced demand.
The best way to stimulate any economy is to put the money in the hands of the buying public. This came close but in the end it's going to cause more harm than good.
Short term fix for little gain, it would be great if this continued sales, but IMO they will just fall away in-line to the rest of your economy.
As one report I read said, the CFC rewarded the gas guzzling owner with a rebate, but gave nothing to the owners of "Fuel Efficient" cars already in their garage.
Their tax dollars did not help them at all.
Perhaps a rebate for car owners who continued to own and trade in fuel efficient cars would be more helpful rather than a once of, but how a scheme like that would work administratively is another issue.
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Joined: Apr 2005
Posts: 10,880
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From: Australia
Rather than the Dealer or Buyer receiving the rebate checks, why didn't the FEDS give the rebate to the Manufacturers/Distributors to pass on through, IMO much easier as you only have 20 odd brands using a computerized registration system instead of thousands of dealers trying to register CFC details on a system that kept crashing.
That way Mazda NAO takes all the financial risk instead of their dealers, and they would not have to advance $20 million to them in the first place.
That way Mazda NAO takes all the financial risk instead of their dealers, and they would not have to advance $20 million to them in the first place.
#1) A TON of people bought cars that would have never done it in the next 5-10 years
#2) You're saying that people who WOULD have bought cars, buying now, rather than later is a bad thing? In the end, it all balances out right? So you inject buyers into the market now and now we lose them later?
Yet those people are now saving on fuel costs (and in some cases more per month than their car payment), which will send less money to Iran/Iraq and more money into local economies.
Do you guys just look for the negative in everything b/c you don't like the government?
The US will never be socialist. Look up what socialism is. Venezuela is a good example. They have expelled US companies who were doing business there to take over the operations and turn them into government controlled businesses. When has the U.S. government done that?
In fact our progress in technology and science has been held back by our Free Enterprise system. U.S. consumers can't get the technology and medical care that other countries can b/c our U.S. businesses have invested too much money into current technology and need it to last a few more years before they invest in new technology. This has affected everything from the auto industry, healthcare, industry, etc. It's becoming cheaper to fly to Europe to have a better, more advanced surgery done than it is in the U.S.
Look at the jump that Japan has on the US in the auto industry. It's been like this for the past 25 years. Why can't the almighty U.S. keep up? B/c profit today is greater than tomorrow. The wealth of our business today greatly outweighs the health/wealth of our business tomorrow. Even Korea is ready to surpass the US in automotive prowess and technology.
The U.S. is broken gentlemen. We have become a nation of whiners instead of doers. The almighty dollar is worth everything today and nothing tomorrow. Hasn't anyone realized that we can no longer 100% trust the companies and banks that run this country? They will ruin us and their CEOs will take their money and run unless we enact law to stop them from raping our middle and lower class and leaving our economy in ruins.
And this isn't politics. It's the state of things. Democrat, Republican, Green Party alike have been the cause of these things. Not because of the laws written, but b/c of the laws not written. Our Constitution was written in a way to allow adaptation of our country and government. When I was 5 years old, it was 1985 and all I remember was what a proud country this was. We were hard working, ahead of the curve, and nobody could match us. I have slowly watched our country get behind in everything we do, except for importing goods. We are the leader in that!
We need some extreme change somewhere to turn this country around. While tragic, I hoped that 9/11 would turn us around to pick up the pace, but unfortunately, our leadership wanted to focus on other things. I really wish we had a President like Truman or Roosevelt (Teddy or FDR) again. They would make the hard decisions and turn this country into a self reliant country again. Obama is trying, but since he's a fairly left Democrat and our country is so divided, he's finding it very difficult to do so. Nobody said it would be easy though. I wouldn't want his job. There's no easy way out of this mess, but we DO need change...on the largest level you can think of.
I love this country. I just want to see us on top again, not just in profits, but in everything. Maybe it's just China's time to shine? I won't accept that from those commy bastards!!
#2) You're saying that people who WOULD have bought cars, buying now, rather than later is a bad thing? In the end, it all balances out right? So you inject buyers into the market now and now we lose them later?
Yet those people are now saving on fuel costs (and in some cases more per month than their car payment), which will send less money to Iran/Iraq and more money into local economies.
Do you guys just look for the negative in everything b/c you don't like the government?
The US will never be socialist. Look up what socialism is. Venezuela is a good example. They have expelled US companies who were doing business there to take over the operations and turn them into government controlled businesses. When has the U.S. government done that?
In fact our progress in technology and science has been held back by our Free Enterprise system. U.S. consumers can't get the technology and medical care that other countries can b/c our U.S. businesses have invested too much money into current technology and need it to last a few more years before they invest in new technology. This has affected everything from the auto industry, healthcare, industry, etc. It's becoming cheaper to fly to Europe to have a better, more advanced surgery done than it is in the U.S.
Look at the jump that Japan has on the US in the auto industry. It's been like this for the past 25 years. Why can't the almighty U.S. keep up? B/c profit today is greater than tomorrow. The wealth of our business today greatly outweighs the health/wealth of our business tomorrow. Even Korea is ready to surpass the US in automotive prowess and technology.
The U.S. is broken gentlemen. We have become a nation of whiners instead of doers. The almighty dollar is worth everything today and nothing tomorrow. Hasn't anyone realized that we can no longer 100% trust the companies and banks that run this country? They will ruin us and their CEOs will take their money and run unless we enact law to stop them from raping our middle and lower class and leaving our economy in ruins.
And this isn't politics. It's the state of things. Democrat, Republican, Green Party alike have been the cause of these things. Not because of the laws written, but b/c of the laws not written. Our Constitution was written in a way to allow adaptation of our country and government. When I was 5 years old, it was 1985 and all I remember was what a proud country this was. We were hard working, ahead of the curve, and nobody could match us. I have slowly watched our country get behind in everything we do, except for importing goods. We are the leader in that!
We need some extreme change somewhere to turn this country around. While tragic, I hoped that 9/11 would turn us around to pick up the pace, but unfortunately, our leadership wanted to focus on other things. I really wish we had a President like Truman or Roosevelt (Teddy or FDR) again. They would make the hard decisions and turn this country into a self reliant country again. Obama is trying, but since he's a fairly left Democrat and our country is so divided, he's finding it very difficult to do so. Nobody said it would be easy though. I wouldn't want his job. There's no easy way out of this mess, but we DO need change...on the largest level you can think of.
I love this country. I just want to see us on top again, not just in profits, but in everything. Maybe it's just China's time to shine? I won't accept that from those commy bastards!!
Registered User
Joined: Jun 2009
Posts: 431
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From: Madison, WI
I saw Mazda in the title and the first post, and then had to wait until the last 2 posts to see Mazda again...
Do members here have ADD? Or do they not know where to find a political forum?
I just know 8 years ago we were a facist government when Bush took over, and now we're a socialist country, but my life style hasn't changed a bit. Am I in a different country than the rest of you???
Do members here have ADD? Or do they not know where to find a political forum?
I just know 8 years ago we were a facist government when Bush took over, and now we're a socialist country, but my life style hasn't changed a bit. Am I in a different country than the rest of you???
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