Mazda Encourages Franchise Exclusivity, Unveils New Dealer Initiatives

LAS VEGAS, Feb. 5, 2004 -- Mazda North American Operations (MNAO) has announced specific measures to increase the number of Mazda dealers investing in the Mazda franchise. The three-year program commitment, which was outlined at the company's national dealer meeting in Las Vegas, seeks to support all existing Mazda dealers and those that make investments in the Mazda brand in the future.

"While Mazda maintains firm ties and loyalties with every one of its dealers across the country, the company feels strongly about recognizing the efforts of those that make Mazda a top priority," said Jim O'Sullivan, president and CEO of Mazda North American Operations. "As we look to the future structure of our dealer body, Mazda's intent is to invest in those dealers who make a commitment to the Mazda franchise."

The new measures take effect in April and end at the close of 2006. They'll be subject to annual modifications. The company anticipates its new dealer effort will double the number of exclusive dealerships over the next several years. Two of the main components driving the effort are the Mazda Facility Program and the Mazda Winners Circle Program.

MAZDA FACILITY PROGRAM

The Mazda Facility Program, available only to those Mazda dealers with either an exclusive franchise or a separate Mazda showroom, supports those dealers that have made a Mazda facility investment and meet minimum square footage, brand signage and image-based facility requirements. Participating exclusive dealers receive a bonus of $350 per vehicle sold, while Mazda dealers with a separate showroom receive $175.

Also part of the Mazda Facility Program, the company will be offering up to $300,000 in construction support to those dealers breaking ground on a new "Retail Revolution" facility or renovating an existing site. Separate showroom facilities that incorporate Mazda's new Retail Revolution design will receive up to $150,000.

MAZDA WINNERS CIRCLE PROGRAM

All Mazda dealers, including dual dealerships, are eligible to participate in the Mazda Winners Circle Program. The Mazda Winners Circle is broken into two components: the Fast Track Advantage program and the Gold Cup Certification program.

The Fast Track Advantage program gives all dealers an opportunity to earn cash (up to 1.0 percent of base MSRP) for each vehicle sold, as long as specific sales and service requirements are met. The requirements involve the evaluation of sales and service training processes, sales and service follow-ups, service appointment setting, vehicle inspections as well as exemplary customer satisfaction ratings.

Dealers that meet Fast Track Advantage standards, and also can be defined as exclusive or separate showroom facilities, are eligible for Gold Cup Certification. Dual Mazda dealerships also are eligible to be Gold Cup Certified if they have a market share of at least 130 percent of the national import average. Gold Cup Certified dealers also must achieve superior customer satisfaction scores and pass an image inspection, designating the facility as clean, comfortable and competitive.

Gold Cup Certified Mazda dealers receive numerous perks, including improved dealer cash flow from advanced advertising payments and twice monthly warranty payments, among others. In addition, they are eligible to receive discounted training and support from Mazda-provided courses and Mazda-approved consultants, press kits for local PR and advertising opportunities, Web site (mazdausa.com) recognition and placement, annual exclusive advertisements in Automotive News, discounted merchandise and various banners, cards and employee gifts.

"This is a great time to be a Mazda dealer, especially for dealers that are willing to invest in the Mazda brand," said O'Sullivan. "We've rolled out an exciting program that will enable more dealers to make a commitment to Mazda and build a solid future of profitable growth."

Mazda North American Operations (MNAO) is responsible for the sales and marketing, customer service and parts support of Mazda vehicles in the United States. Headquartered in Irvine, Calif., MNAO has more than 700 dealerships nationwide.