Achieving a Recycling Ratio of 95%

Mazda is committed to the creation of a recycling-oriented society through the efficient use of resources that are limited in supply. Under Japan's End-of-Life Vehicle Recycling Law, three designated items - fluorocarbons, airbags, and automobile shredder residue (ASR)* - are appropriately processed and recycled by Mazda. In FY2006, our recycling ratio for end-of-life vehicles rose 1 percentage point, from 94% in FY2005, to 95%, enabling us to achieve our initial target four years ahead of schedule.

As and when appropriate, recycling fees are paid to dealerships, and we collect end-of-life vehicles for transfer from their final owners to dismantlers. Please see our website for details of recycling fees and recycling performance in FY2006.

* Automobile shredder residue (ASR) is the residue that remains after the crushing/shredding of batteries, tires, fluids and other components needing processing; engines, bumpers and other items after the removal of valuable parts; and their separation and recovery as different metals.

Recovery and Destruction of Fluorocarbons, Recycling of Airbags

Mazda ensures the appropriate processing and recycling of fluorocarbons and airbags through the Japan Auto Recycling Partnership (JARP), an umbrella organization established jointly by automakers in Japan to enable appropriate, failure-free and efficient recovery and recycling of fluorocarbons and airbags.

In FY2006, Mazda recovered approximately 44,000 kg of fluorocarbons from some 138,000 vehicles, and approximately 78,000 airbags from some 47,000 vehicles. We increased our recycling ratio for airbags by 1 percentage point from 93% in FY2005, to 94% (compared with the legal minimum of 85%).

Recycling of ASR: Surpassing the 70% Legal Minimum Recycling Ratio for 2015

Mazda ensures rigid legal compliance in recycling, and improvement of recycling ratios, by working through the Automobile Shredder Residue Promotion Team, set up by a group of 12 automotive companies including Group members Ford Japan Limited and PAG Import, Inc.*, as well as Nissan Motor Co., Ltd., Mitsubishi Motors Corporation and others. This grouping has the task of designating points for residue recovery and recycling facilities.

ASR recovery at Mazda totaled approximately 34,000 tons in FY2006, from some 196,000 vehicles. Of this total, 24,000 tons were recycled, enabling us to increase our recycling ratio by 7 percentage points from FY2005 to 70% (compared with the legal minimum of 30%). As a result of steady improvement of our annual recycling record following enactment of recycling legislation in 2005, we have achieved the 70% legal minimum for 2015 under the End-of-Life Vehicle Recycling Law nine years early.

* PAG Import, Inc., is the Japanese arm of the Premium Automotive Group (PAG), a general sales organization for brands under the Ford umbrella.1