Texas, La. Dealers Brace as Hurricane Laura Hits Category 4
Automotive retailers on the Texas and Louisiana coastlines on Wednesday closed their operations and braced for Hurricane Laura, which was upgraded to Category 4 and packed winds of 140 mph, The Weather Channel reported. According to Automotive News, several cities and towns, such as Galveston, Texas, were evacuating on Wednesday as the storm approached the coast at 16 mph, projected to hit land later tonight. The Louisiana National Guard was called out. Houston-based Group 1 Automotive Inc. said it closed its six stores in the Beaumont, Texas, area and “evacuated as instructed” ahead of Hurricane Laura’s expected landfall on the Gulf Coast. Dealer associations in the affected states said that several members opted to close their doors as early as Monday. Darren Whitehurst, president of Texas Automobile Dealer Association, said his members "are doing what they’ve done for every other hurricane that has hit the Texas coast.” Read more here (Source: Automotive News).
Car Sales Recovery Will Continue Slowly, Analysts Believe
Analysts are predicting sales of new vehicles are continuing to improve in August, though they remain stuck below the level recorded before the COVID-19 pandemic sent the economy into a lockdown. The Detroit Bureau reports that ALG Inc., a subsidiary of TrueCar Inc., estimates total new vehicle sales will hit 1.3 million units in August 2020, down 15% from a year ago when adjusted for the same number of selling days. Analysts from Bank of America estimate light vehicle sales in August 2020 declined 14.8% year over e year on a selling day adjusted basis, hitting a seasonally adjusted annual rate or SAAR of 14.9 million units, which compares to other industry estimates in the range of 14.5mm-15.0mm. Following the dropoff in sales of 33% in March and 49% in April from COVID-19 and related disruptions, demand has rebounded faster than expected. Sales in May, June, and July all showed marked good sequential improvement. This is likely helped by pent-up demand from shutdowns in March-April, low interest rates, OEM incentives, and states easing stay-at-home policies. Read more here (Source: The Detroit Bureau).
Ford Rethinks the Office, Betting That Work Will Be Partly Remote Longer-Term
The Wall Street Journal reports that thousands of office employees at Ford Motor Co. have come back to work in recent weeks to retrieve their things. All of their things. With its white-collar employees working remotely at least until January because of the coronavirus pandemic, Ford is taking advantage of its empty buildings to reconfigure the workplace for a new era in which employees will have more options to do their jobs remotely, a company real-estate director said in an interview this week. Most of the roughly 30,000 employees who work at or near Ford’s Dearborn, Mich., headquarters have returned to the office this summer to clean out their desks and workspaces, all while donning face masks. Ford has emphasized to workers the collect-and-clear exercise that began in July has nothing to do with layoffs. Rather, the No. 2 U.S. auto maker is trying to prep for a future in which many, if not most, employees won’t come into the office every day, said Jackie Shuk, a global director at Ford’s real-estate arm. Read more here (Source: The Wall Street Journal).
VW Will Take $100 Reservations When ID4 is Revealed in September
Volkswagen will use a centralized online reservation system in North America next month as it reveals the ID4 battery-electric subcompact crossover and will accept initial $100 refundable deposits from consumers to hold their place in line, reports Automotive News. However, the actual sales price will still be set by the local dealer and could potentially differ from the as-yet-undisclosed sticker price. Meanwhile, Volkswagen of America is still negotiating with its German parent company, Volkswagen Group, over exactly how many ID4s will be allocated for sale in North America as the Tiguan-sized crossover begins its first few weeks of production this month in Zwickau, Germany. The ID4 is due to begin arriving in U.S. dealerships at the very end of this year. Initially, distribution will be concentrated in states such as California that have a zero-emission-vehicle mandate but should be expanded across the country in the first half of 2021, explained Duncan Movassaghi, executive vice president of sales and marketing for Volkswagen of America. Read more here (Source: Automotive News).
U.S. Durable Goods Orders Leap 11.2% in July on Strong Demand for Cars and Trucks
Orders for durable goods lasting at least three years surged 11.2% in July largely because of strong consumer demand for new cars and trucks, but business spending outside the auto industry was softer and investment grew more slowly. The increase in orders last month — the third in a row — easily topped the 4.8% forecast of economists surveyed by MarketWatch. Yet demand for industrial goods was less robust if autos and airplanes are excluded. New orders rose a smaller 2.4% minus transportation, the government said Wednesday. Big ups and downs in transportation often distort the underlying pace of demand. New industrial orders still remain about 6% below the precrisis peak. Orders for new cars and trucks jumped 22% last month after a nearly 24% gain in June. Auto orders are likely to moderate soon now that plants have reopened and auto manufacturers are operating closer to normal capacity. Sales to corporate customers are still depressed and demand usually wanes in the fall. Read more here (Source: MarketWatch).
Webinar TODAY: Navigating PPP Loan Forgiveness
Join AIADA's next webinar today at 2:00 p.m. EDT. Navigating the forgiveness application of PPP loans is a complicated undertaking requiring constant monitoring with frequent guidance changes and updates.
Experts from Moss Adams will cover:
-
The pros and cons on when and how to apply for forgiveness, including uncertainty around taxability of forgiveness amounts.
-
An update on recent released guidance. What questions the guidance did or didn’t answer.
-
How to minimize the impact of the forgiveness application process so you can focus on your business
Around the Web
Americans Are Using Their Cars to Get Some Damn Alone Time [Car and Driver]
How to Keep Your Pets Properly Protected in the Car [Autoblog]
