Motorcar Parts of America Launches Initial Phase of Vendor Supply Chain Financing Program

Rhea-AI Summary

Motorcar Parts of America (MPAA) has launched a vendor supply chain financing program to improve payment terms and cash flow for vendors and the company. The program will be administered by a leading FinTech company and will provide suppliers with early payment options while maintaining non-recourse accounts payable treatment.

LOS ANGELES--(BUSINESS WIRE)-- Motorcar Parts of America, Inc. (Nasdaq:MPAA) today announced it has launched a vendor supply chain financing program designed to enhance payment terms and improve cash flow for both valued vendors and the company.

The platform will be administered by a leading FinTech company, which services suppliers in more than eighty countries in multiple currencies. Motorcar Parts of America is engaging a syndicate of supply chain financing institutions to support the extension of terms for its accounts payable.

The online platform will provide suppliers with future visibility for payment of approved invoices and the ability to receive early payment options, with the company maintaining its non-recourse accounts payable treatment.

“The launch of this supply chain financing program complements our strategic focus on neutralizing working capital requirements and opportunities to increase cash flow. We look forward to reporting further milestones as the strategic rollout of this program evolves,” said Selwyn Joffe, chairman, president and chief executive officer.

About Motorcar Parts of America

Motorcar Parts of America, Inc. is a remanufacturer, manufacturer, and distributor of automotive aftermarket parts -- including alternators, starters, wheel bearings and hub assemblies, brake calipers, brake pads, brake rotors, brake master cylinders, brake power boosters, turbochargers, and diagnostic testing equipment utilized in imported and domestic passenger vehicles, light trucks, and heavy-duty applications. Its products are sold to automotive retail outlets and the professional repair market throughout the United States, Canada, and Mexico, with facilities located in California, New York, Mexico, Malaysia, China and India, and administrative offices located in California, Tennessee, Mexico, Singapore, Malaysia, and Canada. In addition, the company’s electrical vehicle subsidiary designs and manufactures testing solutions for performance, endurance, and production of multiple components in the electric power train – providing simulation, emulation, and production applications for the electrification of both automotive and aerospace industries, including electric vehicle charging systems. Additional information is available at www.motorcarparts.com.

The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for certain forward-looking statements. The statements contained in this press release that are not historical facts are forward-looking statements based on the company’s current expectations and beliefs concerning future developments and their potential effects on the company. These forward-looking statements involve significant risks and uncertainties (some of which are beyond the control of the company) and are subject to change based upon various factors. Reference is also made to the Risk Factors set forth in the company’s Form 10-K Annual Report filed with the Securities and Exchange Commission (SEC) in June 2023 and in its Forms 10-Q filed with the SEC for additional risks and uncertainties facing the company. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as the result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231128275057/en/

Gary S. Maier

Vice President, Corporate Communications & IR

310-972-5124

Source: Motorcar Parts of America, Inc.

FAQ

What is the vendor supply chain financing program launched by Motorcar Parts of America (MPAA)?

Motorcar Parts of America (MPAA) has launched a vendor supply chain financing program designed to enhance payment terms and improve cash flow for both vendors and the company.

Who will administer the vendor supply chain financing program for Motorcar Parts of America (MPAA)?

The program will be administered by a leading FinTech company.

What benefits will suppliers receive from the vendor supply chain financing program?

Suppliers will receive future visibility for payment of approved invoices and the ability to receive early payment options.

Who is the chairman, president, and chief executive officer of Motorcar Parts of America (MPAA)?

Selwyn Joffe is the chairman, president, and chief executive officer of Motorcar Parts of America (MPAA).