Mazda Ends Its 23-Year Relationship With Its Only Independent U.S. Distributor
6 December 1999
Mazda Ends Its 23-Year Relationship With Its Only Independent U.S. DistributorIRVINE, Calif., Dec. 6 -- Mazda North American Operations (MNAO) today announced that it has reached agreement with Mazda Great Lakes (MGL), its only independent U.S. distributor, to end its 23-year association. The agreement calls for MGL to transfer distribution rights, vehicles, parts, inventory and customer support to MNAO, effective March 2, 2000. "We have had a great relationship with Mazda Great Lakes since they became a Mazda distributor," Richard Beattie, president and CEO of MNAO, said. "They have been staunch supporters of the Mazda brand and its vehicles, but to maintain our year-over-year growth well into the next century, we felt the time was right to assume responsibility from MGL for Mazda's business in the Midwest. This is a strategic move," Beattie added, "that also will help us more fully integrate our sales and marketing initiatives and aid our ongoing market revitalization efforts in this part of the country." There are 108 Mazda franchised dealerships in six states encompassing the territory currently serviced by MGL. There are no plans to change vehicle or parts percentage margins to dealers as a result of this action. It is expected that MNAO will relocate the Midwestern headquarters from Grand Rapids, Mich. No interruption in the supply of vehicles or parts to affected dealers is anticipated. Mazda North American Operations (MNAO) is responsible for the sales and marketing, customer parts and service support of Mazda vehicles in the United States. Headquartered in Irvine, Calif., MNAO has more than 750 dealerships nationwide and is owned by Mazda Motor Corporation, Hiroshima, Japan.