Courter's Two Cents: The Only Way Out is Through
Chairman Jason Courter writes that about a month ago he blogged about what it was like to operate his two Honda stores in Kirkland, Washington, which was, at the time, ground zero for the coronavirus in the United States. The only way out of it is through. And we must get through it together. The good news today is that the much-anticipated Paycheck Protection Program contained within Congress’ CARES act will begin accepting loan applications today, Friday, April 3rd. For dealers, this initiative could be a game changer. You can find the loan application and more details on the program here. AIADA is encouraging dealers to apply for these loans as quickly as possible, as there is a spending cap and demand will be high. Click here for more information on the AIADA website. Please don’t hesitate to contact the staff at AIADA with your questions at 1-800-GO-AIADA. As new relief bills are debated and moved through Congress, know that AIADA will continue to fight on your behalf, ensuring that when relief is made available, dealers will stand to benefit. Read more here.
Ford Expects Talks with U.S. on Cash for Clunkers-Like Stimulus
Automotive News reports that Ford Motor Co. would like the U.S. government to sponsor an automotive stimulus program to help the industry get back on its feet after the coronavirus crisis abates. “We think some level of stimulus somewhere on the other side of this would help not only the auto industry and our dealers, which are a huge part of our overall economy, but will help the customers as well,” Mark LaNeve, Ford’s vice president of U.S. marketing, sales and service, said in a phone interview. “We’re in discussions about what would be the most appropriate.” Those discussions are internal at Ford for now, but are eventually expected to involve the government, LaNeve said. One model being considered is the government’s “cash for clunkers” program of more than a decade ago, which helped stimulate auto sales following the global financial crisis by encouraging drivers to turn in older cars in exchange for money toward buying new ones. Read more here.
GM, Honda Partner to Build Honda EVs in GM Plants
General Motors Co. and Honda Motor Co. announced an agreement Thursday to jointly develop two new electric vehicles for Honda that will be based on GM’s global electric-vehicle platform that's powered by the Detroit automaker's Ultium battery system, reports The Detroit News. The companies said the new electric cars will be built at GM plants in North America, with sales in the United States and Canadian markets expected to begin in 2024. The announcement is the latest result of a partnership between GM and Honda on electrification and fuel-cell battery technologies that stretches back to 2013. The agreement calls for Honda to incorporate GM’s OnStar safety and security services into the two new electric cars, integrating them with the HondaLink system that pairs smartphones with the car's infotainment system. Additionally, the companies said Honda plans to make GM’s hands-free advanced driver-assist technology available. Read more here.
Auto Parts Suppliers Teeter as Car Production Halts
With U.S. car factories idled because of the new coronavirus, the disruptions are falling hard on the nation’s auto-parts suppliers, some of which are already showing signs of distress, reports The Wall Street Journal. Unlike the bigger, well-capitalized car companies, the thousands of parts firms that feed the industry’s global supply chain operate closer to the edge with less of a cash cushion and with contract orders that still need to be filled, say executives, consultants and industry lawyers. Some are already laying off workers, delaying payments to vendors, and asking lenders to adjust terms. Others are trying to preserve business by keeping some manufacturing lines running, knowing they need to be ready when the car companies resume production. Many supply contracts require auto-parts firms to deliver on time or risk fines of up to $50,000 for every minute delay, industry attorneys say. “It doesn’t take as much to send them under because they’re already stretched,” said Jeremy Rice, who works with auto suppliers at accounting firm Mazars USA. “This is just another giant weight on a very thin sheet of ice.” Read more here.
Nissan, Volkswagen Extends Shutdown at U.S. Plants
Nissan will keep its manufacturing and assembly plants in Tennessee and Mississippi shuttered until the end of April, although the company but did not specify a specific date, reports The Detroit Bureau. Volkswagen of America also announced it was pushing back the date it plans to resume production at its plant in Tennessee until April 12. Meanwhile, Nissan, which was struggling even before the pandemic shut down the U.S. economy, said it shutdown will extend through the month of April. Nissan Group announced total U.S. first-quarter sales for the calendar year 2020 of 257,606 units, a decrease of 29.6% versus the prior year. General Motors Co. has not ventured to announce when it planned to open its assembly plants, while Ford Motor Co. has put off plans to restart production in the middle of April and Ford’s CEO, Jim Hackett, has been saying the company’s factories may not re-open until May. Read more here.
CNA National: Longevity You Can Depend On
During this challenging time, you can rely on AIADA’s longest-standing Affinity Partner to remain open for business. CNA National has weathered countless changes and disruption in the industry for more than 38 years, always providing a solid foundation for the dealers it serves. Even during the current circumstances, CNAN is steadfast in its commitment to providing first-class customer service, personalized support and industry-leading products to help its clients now and into the future. To speak to a representative about how CNA National can support you, call (800) 345-0191 x450 or connect online.
AutoTalk COVID-19 Webinar Series
Treasury Department: Paycheck Protection Program Overview and Application Information
COVID-19 Resources for Dealers
AIADA's One-Page Print-Out: Plan and Respond to Coronavirus at Your Dealership
Federated Insurance: Coronavirus and Pandemic Directives and Go-To Resources
Around the Web
Cars So Hot They're Out of Stock [24/7 Wall St.]
These 5 LEGO Car Kits Are Great Projects When You're Bored at Home [Autoblog]
Average Car Loan Now 70 Months [Fox News]
Keep Your Car Clean to Reduce Risk from Coronavirus [Boston.com]
