Paycheck Protection Program Applications Now Available
Last week, as part of the federal CARES Act and in response to the coronavirus crisis, Congress made available a variety of emergency loans to small businesses. For dealers, the most anticipated of these initiatives is the Paycheck Protection Program. Treasury Secretary Steve Mnuchin has announced that Paycheck Protection Program applications can be submitted starting on Friday April 3rd. You can find the loan application and more details on the program here. AIADA encourages dealers to explore this option for their stores and employees and apply as quickly as possible, as there is a spending cap. Click here for more information on the AIADA website.
Sales Dive As Outbreak Curbs Showroom Traffic
General Motors, Toyota Motor Corp., FCA US, Nissan Motor Co., and BMW Group posted lower first-quarter U.S. sales, with a big hit in March, underscoring the sudden, negative and sweeping impact the coronavirus has dealt automakers and dealers as Americans hunker down at home. Automotive News reports that in a closer snapshot of how the epidemic quickly upended the industry, volume last month dropped 37 percent at Toyota, leaving it down 8.8 percent for the first quarter, 48 percent at American Honda, and 43 percent at Hyundai, one of the hottest brands over the last 24 months. Among other automakers, March deliveries skidded 19 percent at Kia, 47 percent at Subaru, 42 percent at Mazda and 52 percent at Mitsubishi. Among automakers reporting results as of late Wednesday, only two brands – Ram, up 2.5 percent, and Kia, up 1 percent – escaped the first quarter with gains. Read more here.
AutoTalk COVID-19 Webinar Series Recordings Now Available
If you weren’t able to catch the first two installments of AIADA’s special COVID-19 webinar series, take advantage of the recordings and resources now available:
-
Customer Care and Business Guidance During a Pandemic: Part One of our COVID-19 series included AIADA's Chairman and dealer, Jason Courter from Honda of Kirkland, and industry leader Kendall Billman for a discussion on how to nurture your customers and keep your business viable during the COVID-19 pandemic. Click here for a recording of the webinar.
-
Tax and Financial Planning in the Time of COVID-19: Part Two of our COVID-19 series featured experts from Moss Adams Automotive and Dealer Services Group who talk about the Federal Stimulus package and explain how the program can benefit you and your employees. Click here for a recording of the webinar and the accompanying slide deck.
Florida, Texas, Other States Issue New Restrictions to Slow COVID-19
Several states, including Florida and Texas, are the latest to issue orders requiring residents to stay home or nonessential businesses to close to slow the spread of the COVID-19 illness, reports Automotive News. Florida Gov. Ron DeSantis on Wednesday issued a "safer at home" order mandating residents limit activities outside the home to "only those necessary to obtain or provide essential services or conduct essential activities." DeSantis' order, which takes effect at 12:01 a.m. Friday, runs until April 30 unless extended. It follows a previous order DeSantis issued Monday exclusive to some southern Florida counties. DeSantis defines "essential services" using the guidance put forth by the U.S. Department of Homeland Security's Cybersecurity and Infrastructure Security Agency. The Florida Automobile Dealers Association, in a post on its website on Wednesday, advised dealerships that they have been deemed essential services. Read more here.
New Vehicle Interest Rates Rise in March
For those thinking that the Federal Reserve’s move to essentially cut the interest rate to zero last month would be a boon to those in the new vehicle market due to anticipated rise in low-interest and zero-percent loans, March was a disappointing month. According to The Detroit Bureau, the average interest rate for a new vehicle loan rose slightly in March, according to Edmunds.com. The annual percentage rate on new financed vehicles averaged 5.8% in March, compared to 5.6% in February. However, there was a bright spot for the buyers with excellent credit, Edmunds data reveals that the share of sales with 0% finance deals rose slightly in March, constituting 4.7% of new vehicle purchases compared to 3.6% in February. New vehicle sales are expected to fall as much as 40% in March and a small jump in interest rates won’t help. Read more here.
European Car Industry Prepares for the Worst as Sales Plunge
Damage to the European car industry from the coronavirus pandemic is piling up, after sales plunged in France and Spain and a major parts supplier scrapped its outlook. Bloomberg reports that French passenger car registrations dropped 72% in March compared with the previous year, according to the CCFA trade group. In Spain, new car registrations fell by 69% to below the worst levels of the financial crisis, the Spanish Association of Automobile and Truck Manufacturers said. Carmakers from Volkswagen AG, PSA Group, and Fiat Chrysler Automobiles NV to Renault SA have shuttered factories and showrooms after governments restricted public life to stem the spread of Covid-19. With people housebound in major auto markets like France and Italy and non-essential purchases prohibited, consumers aren’t buying new vehicles. Read more here.
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
2021 BMW 5-Series Spy Shots [MotorAuthority]
Lotus Plans Major Expansion in the 2020s [Autoblog]
Coronavirus in Cars: How to Clean Properly to Prevent Spread [Fox Business]
Honda Pivots Production to Plastic Shields [Dayton Business Journal]
