Mazda's CEO Applauds 'Cash For Clunkers' Bill Passage

IRVINE, CA - June 18, 2009: Today the United States Senate adopted the "Cash for Clunkers" bill and President Obama is expected to sign the bill into law within days. Mazda North American Operations' (MNAO) president and CEO and 2009 Automotive Executive of the Year, Jim O'Sullivan, responds to the new legislation:

"Mazda applauds Congress for passing the fleet modernization, or 'cash for clunkers,' bill that will essentially put cash in the hands of the consumer and increase vehicle sales at a time when demand is extremely depressed. Additionally, older, less fuel-efficient models will be replaced by newer ones that are cleaner for the environment. Mazda has been working diligently with Congress on this legislation and is excited about the benefits this bill will provide to American consumers.

The 'cash for clunkers' program can deliver real benefits to consumers, the environment and the economy. Congress has provided $1 billion for the program, a sufficient amount for approximately 250,000 new vehicles sales and a tremendous boost to our industry. This is a strong signal to consumers that now is the perfect time to trade in their 'clunkers' and buy new vehicles. According to the Congressional Budget Office, as many as 25 million older vehicles worth less than the voucher amounts are eligible for trade-in under the program.

Fleet Modernization legislation has already shown positive results around the world, where 15 countries have enacted similar programs. We look forward to comparable results here in the United States."

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, Mexico and Puerto Rico through nearly 900 dealers. Operations in Canada are managed by Mazda Canada, Inc., located in Ontario; in Mexico by Mazda Motor de Mexico in Mexico City; and in Puerto Rico by Mazda de Puerto Rico in San Juan.

Fact Sheet: Cash for Clunkers

The so-called "Cash for Clunkers" program allows a consumer to trade-in an old, fuel-inefficient vehicle and receive a voucher for either $3,500 or $4,500 to help pay for a new, more fuel efficient car or truck. The program runs from July 1 - October 31, 2009. Congress has provided $1 billion for the program, a sufficient amount for approximately 250,000 vehicles. The U.S. Department of Transportation (DOT) has 30 days following enactment to issue detailed regulations for the program.

The basic requirements for passenger cars and light-duty trucks are listed in the chart below. Miles per gallon figures used are combined EPA "window sticker" values. The mpg figures are on EPA's website at www.fueleconomy.gov. The correct number is listed as "Estimated New EPA mpg." DOT will establish a new website listing all eligible trade-in vehicles, eligible new vehicles, as well as participating auto dealers and recyclers.

                                            For SUVs, Minivans and
     For Passenger Cars               Light-Duty Trucks (< 6,000 lbs.)

  Trade-in Vehicle:                     Trade-in Vehicle:

  Combined 18 mpg or less.              Combined 18 mpg or less.

  In drivable condition and             In drivable condition and has
  has been continuously                 been continuously insured and
  insured and registered to             registered to the same owner
  the same owner for at                 for at least one year
  least one year immediately            immediately prior to trade-in.
  prior to trade-in.

  Manufactured less than 25             Manufactured less than 25 years
  years before date of the              before date of the trade-in.
  trade-in.

  New Vehicle:                          New Vehicle:

  Combined 22 mpg or more AND           Combined 18 mpg or more AND

    4-9 mpg improvement over            2-4 mpg improvement over
     trade-in vehicle, $3,500            trade-in vehicle, $3,500
    At least 10 mpg                     At least 5 mpg improvement over
     improvement over trade-in           trade-in vehicle, $4,500
     vehicle, $4,500

  $45,000 MSRP or less.                 $45,000 MSRP or less.

  Vehicle must be new and               Vehicle must be new and has
   has never been titled.                never been titled.