Mazda‘s North American unit will made advanced payments to dealers, saying it believed the payments would more than cover the credits earned during the federal government’s ‘cash for clunkers’ (CARS) programme which is ending today (24 August).

Mazda said it would make the payments, expected to total US$20m, 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 ‘clunkers’ deals.

Advanced payments would be paid by Wednesday (26 August), Mazda said.

“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 programme 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.”