Mazda Applauds Cash for Clunkers Results

There's no doubt the Car Allowance Rebate System (CARS) established by the US government and rolled out last Monday brought at least surprising results. At least from our point of view, the consumers, who burned all the money in approximately one week. But automakers participating to the scheme were shocked to see so many consumers were suddenly interested in purchasing a new car.

Mazda for instance says the CARS initiative brought a huge increase in showroom traffic from the very first days of the campaign. And more importantly, Mazda recorded pretty high sales, with 57 percent of all cars sold under the programme accounted by Mazda3, the company's most fuel efficient vehicle, as it says.

"We're obviously very pleased by the sales improvement the Cash for Clunkers program has provided," said Jim O'Sullivan, MNAO president and CEO. "But even more 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."

"Americans have been asking for assistance to help them through this recession," O'Sullivan added. "And the overwhelming consumer demand as evidenced by the number of CARS transactions, demonstrates how important this program is to the average Joe."

"We and our dealers are requesting the White House and Congress to provide immediate additional funding for the Cash for Clunkers program. We're also asking that the program, which is still in its infancy, be continued in its current form so as not to confuse consumers."

The CARS scheme will continue this week too, despite voices saying that the US government might run out of cash. Meanwhile, the US administration has already approved an extra $2 billion package of the scheme which now awaits the Senate's approval.