The government's $787 billion economic stimulus package -- signed by President Barack Obama on Tuesday -- will provide a boost to new car and truck sales, but the head of Mazda's North American arm called on more aggressive steps to unlock credit markets, stem job losses and jump-start consumer confidence.

'Ninety percent of Americans are still working, but some 1 million are waiting on the sidelines to make a new vehicle purchase,' Jim O'Sullivan, president and chief executive of Mazda North America, told the Automotive Press Association Tuesday.

The stimulus package provides a federal tax deduction for state excise and sales taxes on new vehicle purchases made in 2009. Some studies estimate the deductions will increase new car demand by 100,000 units. Dealers and manufacturers also lobbied unsuccessfully for a tax deduction on interest paid on new car loans, a measure that would have boosted new car demand by another 260,000 units.

But until the government resolves the toxic assets dogging banks, credit markets thaw and consumer confidence rebounds, automakers, suppliers and dealers will keep downsizing.

'We've gone from greed to fear in just a short, unprecedented period,' O'Sullivan said. 'The auto industry is not going to go away but when the recovery comes, the landscape will look different at every level -- fewer brands, manufacturers, suppliers and dealers.'

Mazda expects U.S. industry sales to drop to 11 million units in 2009, after falling 18 percent to 13.24 million units last year.

The Japanese automaker's U.S. sales slipped 11 percent last year but fared better than other manufacturers that also market large trucks and SUVs, which fell out of favor when gas prices spiked to $4 a gallon.

'We're looking at a recovery in late 2009 after a very tough first half,' O'Sullivan said. 'The economic downturn came with unprecedented speed and ferocity. Everybody is hurting.'

Like other automakers, Mazda has curtailed production and cut jobs to preserve cash and respond to the slump.

The company posted a net loss of 600 million yen ($6.7 million) during the quarter that ended Dec. 31, compared with a profit of 15.9 billion yen ($172 million) a year earlier. Its sales have dropped in all markets worldwide except China. The company anticipates a net loss of 13 billion yen ($140 million) for the fiscal year that ends March 31, compared with a previous forecast of 50 billion yen ($541 million) in profits. It will be the company's first net loss in eight years.

Despite the financial setbacks, O'Sullivan said the company's product introductions are on schedule, though analysts expect some models such as the Tribute SUV -- a derivative of the Ford Escape -- and a pickup to be dropped over time.

Over the past year, the company has introduced a new Mazda6 midsize sedan to better compete with the Honda Accord and Toyota Camry. A revamped MX-5 Miata with enhanced fuel economy will go on sale this spring. Refreshed versions of the CX-7 and CX-9 crossovers will be unveiled at the upcoming New York Auto Show.

And on Tuesday, Mazda announced pricing on the new 2010 Mazda3 will start at $15,715, including destination charges of $670. It is Mazda's top seller in the United States and worldwide, and the company has included new features -- unavailable on rival models -- to broaden its appeal.

The entry-level Mazda3 i model is powered by a 2.0-liter four-cylinder with 148 hp. The premium Mazda3 s features a new 2.5-liter four-cylinder engine, and will have a base price of $20,210 on the sedan and $20,700 on the hatchback when equipped with an optional five-speed automatic transmission.

The top-selling Mazda3 i Touring sedan with a 2-liter engine and automatic transmission will be priced at $18,350. It includes key features such as dynamic stability control, traction control, and Bluetooth wireless mobile phone and audio capability and hands-free operation. It also features a 10 percent improvement in highway fuel economy -- at 33 mpg.

To raise cash, Ford Motor Co. reduced its staked in Mazda from 33.4 percent to 13 percent last year, but the two companies will continue to operate joint ventures, combine parts purchases, and share engineering and powertrain resources, O'Sullivan said.

Mazda's plans to boost the fuel efficiency of its model lineup 30 percent over the next few years also remains on track, with weight reduction, smaller vehicles, diesel engines and other options under consideration.

'We are working very closely with Ford on technology, hybrids -- all of the things that are happening related to product development,' O'Sullivan said.