Hyundai to Give Dealers Financial Help

First Up 03/18/20

Dealers: Our Stores Are Essential to Society

As states and municipalities weigh further restrictions on public gatherings and “non-essential” businesses in the fight against the Covid-19 virus, Cody Lusk, President and CEO of the American International Automobile Dealers Association (AIADA), has one message to share: Auto dealerships and their service shops ARE essential to the communities they serve.

“These are uncharted waters for all of us. As Americans determine the best way to move forward and protect each other, AIADA asks that lawmakers keep in mind the tremendous value dealerships offer their cities and towns, and the many important services they perform – from brake repairs to addressing critical recalls to providing vehicles to essential workers who can no longer rely on public transportation. Dealers are working around the clock to ensure compliance with CDC guidelines and establish safe conditions for both their employees and customers. Local governments should allow them to continue to make available the essential services their communities require." Read Lusk's full statement on why dealerships are essential parts of their communities here. 

Hyundai to Give Dealers Financial Help

Hyundai Motor America will offer dealers relief to help them weather a slowdown in showroom traffic amid the coronavirus crisis, reports Automotive News. The automaker is adjusting its dealer performance objectives for March, adjusted its co-op marketing program and is offering customer loyalty incentives on select models, a company spokesman told Automotive News on Tuesday. In addition, Ryan Gremore, president of O'Brien Auto Team of Bloomington/Normal, told Automotive News that Hyundai has extended timing on facility agreements. The automaker's captive, Hyundai Motor Finance is offering deferred floorplan interest, increased incentives and other assistance. The aid for dealers comes as Hyundai, alongside sibling luxury brand Genesis, relaunches its job loss protection program for new vehicles, offering to make up to six months of payments for customers who buy or lease over the next seven weeks through its captive financing arm. Genesis is offering a similar program. Read more here. 

Detroit 3 CEOs, UAW Agree to 'Partial' Shutdown

The Detroit three automakers and the UAW agreed to new measures late Tuesday to protect factory workers from coronavirus, the union said. According to The Detroit Free Press, the automakers will find ways to improve social distancing between workers at its factories and agreed to review and implement a rotating partial shutdown of facilities. That basically means curbing production. Each company will announce its own plans, but one way would be to reduce three shifts to two shifts, which would allow more time to clean and offer less contact between workers. "The health and safety of our workforce is our top priority," said Ford Motor Co. spokeswoman Kelli Felker. "We’re working closely with the UAW and are aiming to announce details in the next 24 hours." General Motors spokesman Jim Cain said the details aren’t worked out, but, "You can expect each automaker will develop an approach that fits their unique situation and works to the same end, which is worker health and safety." The automakers met with UAW leaders for several hours Tuesday evening as part of a task force the parties formed to enhance health safety at factories. Read more here. 

BMW, Toyota to Suspend European Production

BMW said it is preparing to suspend production at its plants in Europe and Rosslyn, South Africa, until April 19, responding to lower demand and as a way to help reduce the risk of spreading the novel coronavirus, reports Automotive News. Likewise, Toyota will shut all its plants in Europe over the course of this week, the automaker said in a statement. BMW said its plant shutdowns will start at the end of the week. The German automaker abandoned hopes for another record vehicle sales year due to the coronavirus pandemic, predicting deliveries will be “significantly below” 2019 levels and profitability the weakest in years. “We take our responsibility seriously, both when it comes to ensuring the protection and health of our employees and to achieving the best possible balance in terms of profitability,” CEO Oliver Zipse said in a statement on Wednesday. Read more here. 

Volkswagen Shutting European Factories for Two Weeks, Warns of "Very Difficult Year"

The Detroit Bureau reports that Daimler AG on Tuesday evening in Europe announced it will temporarily close most of its European plants to address both the coronavirus pandemic and the consequent slump in new vehicle demand. That move followed the announcement earlier in the day by Volkswagen CEO Herbert Diess that it will halt production at most of its own European plants for 14 days. The move by the two companies comes in response to the spreading coronavirus pandemic that is rapidly approaching 200,000 known cases and more than 7,000 deaths worldwide. During a Tuesday morning news conference, Diess said the shutdown would begin “in the near future,” but the German news agency dpa quoted worker representatives indicating the closures would start this coming Friday in most locations. VW has already idled its plants in Italy, the European country hardest hit by the coronavirus crisis. The escalating pandemic “presents us with unknown challenges,” said the VW CEO, adding that this could prove to be “a very difficult year.” Read more here.

ADESA Auctions Go Simulcast-Only Through April 3

Amid the COVID-19 pandemic, ADESA auction locations in the U.S. and Canada are moving immediately to simulcast-only sales through April 3, parent company KAR Global said in a statement Monday afternoon. Simulcast success fees for buyers and sellers are being waved through April 3. Sales will continue at their regular times. However, cars will not run through the lanes, and dealers are not permitted inside the auctions during these sales. Dealers will be allowed onsite to preview vehicles and process titles/payments outside of sale hours. Buyers can place bids through simulcast on, or on the ADESA Marketplace app, but must have appropriate credentials. They also need buy permissions enabled on their or accounts. “On sale days, the auctions will open for regular business including title and payment processing outside of sale hours,” it added. “Dealers may preview vehicles onsite up to and including on sale day but will not be permitted inside ADESA locations during sale hours.” As for sellers, KAR is “strongly encouraging” reps to use the ADESA Simulcast Remote Seller platform versus attending in person. Updates related to this matter can be found at or


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