Trade Groups Ask for Changes to Small Business Loan Program
A broad coalition of national trade groups sent a letter last week to congressional leaders asking for changes to the Small Business Administration's Paycheck Protection Program that would provide more flexibility to participating small businesses, reports Automotive News. In the letter, sent Thursday, May 21, the groups called for "emergency legislative and administrative action" to repeal the program's requirement that 75 percent of the loan be used to cover payroll costs and 25 percent be used to cover mortgage, rent, and utilities during an eight-week period. Additionally, the groups — including the American International Dealers Association — are asking for an extension of the eight-week period that the funds must be spent to qualify for loan forgiveness and for an extension of the June 30 safe-harbor date for rehiring workers and restoring salary levels. “As the COVID-19 crisis stretches into the summer months, auto retailers need flexibility in order to continue to pay their employees, meet operating expenses and serve their communities,” AIADA said in an emailed statement to Automotive News. Read more here.
AIADA Chairman Jason Courter on the Current State of Automotive, Digital, Marketing, and More
The CBT Automotive Network talked to 2020 AIADA Chairman Jason Courter on yesterday’s newscast. Jim and Jason discuss the current state of the automotive industry, how things have changed in Washington due to COVID-19, and more. Courter pointed to what AIADA is doing on behalf of dealers during this difficult time, including its AutoTalk webinar series. He also emphasized what AIADA is doing in Washington, D.C. and how dealers can remain involved. Watch his full interview here.
Renault-Nissan Execs Say Efficiency Push Will Create Industry's 'Most Powerful' Alliance
Renault, Nissan and Mitsubishi said they would revive their struggling alliance by dividing markets and technologies in a bid to achieve a smaller, but more sustainable, global business that will reemerge as "the most powerful combination of companies in the world." Automotive News reports that under the new strategy, which was unveiled on Wednesday, alliance executives said they will create further efficiencies by extending commonization of vehicle platforms to upper bodies. They will also select a "mother vehicle" that will serve a template for every other model in the segment. Across the three automakers the plan will reduce the number of vehicle platforms in half to four commonized architectures in a move that will save 40 percent on product development. About half of all alliance models will be developed and produced under this approach by 2025. Read more here.
Aston Martin Shares Surge After Mercedes-Benz Exec is Named New CEO
Shares of Aston Martin surged Tuesday after the famed British car brand announced the head of Mercedes-Benz’s performance division as its next CEO, reports CNBC. Tobias Moers, chief executive of Mercedes-AMG, will succeed Andy Palmer, who is stepping down effective immediately after leading Aston Martin since 2014. Moers will begin Aug. 1, the company said Tuesday. Shares of Aston Martin on Tuesday jumped about 40% on the London Stock Exchange before leveling off at about 43.50 pence (54 cents), up roughly 23%. The company went public with shares at £19 in October 2018. Lawrence Stroll, Aston Martin executive chairman, said in a statement Tuesday that the company’s board “determined that now is the time for new leadership to deliver our plans.” Read more here.
How the Coronavirus Pandemic Might Change the Car Business for Good
The Great Recession nearly brought the automotive industry to its knees. A decade later, carmakers are reckoning with a new threat: the novel coronavirus, an unforeseen force that has halted production, disrupted sales, and caused financial pain to an industry that was able to bounce back from its nadir in 2008, reports ABC News. The majority of automakers are better positioned to withstand the economic headwinds this time around, according to Jeff Schuster, president of LMC Automotive's Americas operations and global vehicle forecasts division. "It's more challenging the smaller you are and the fewer resources you have," he told ABC News. "The exposure to European markets is a risk right now. The declines were deeper in Europe and there is no real recovery path yet." Read more here.
Webinar Today: Sanitization and Decontamination Processes to Reduce Virus Risk
Join AIADA's next AutoTalk webinar today at 2:00 p.m. to learn about vehicle santization and decontamination. Dr. Rik Patel is a physician who has spent 11 years in sports medicine and orthopedic care. He is co-founder and chief operating officer of RideKleen, a mobile vehicle care and fleet services.
Hear his take on vehicle sanitization and decontamination, safely restarting various modes of transportation and shared mobility and sustainable vehicle hygiene. Dr. Patel will discuss:
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The importance of vehicle sanitization & disinfection for your workers and customers
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FACTS and MYTHS regarding disinfection
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How do evaluate disinfection products in markets and what to look for? Are they safe?
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Why process matters in vehicle disinfection and things to consider
When: Today, May 27, 2020 at 2 p.m. EDT
Around the Web
New Documentary Chronicles Seven Decades of the Batmobile [The Detroit Bureau]
France to Inject Almost $9B Into Ailing Auto Industry [CNN Business]
Coronavirus Won't Be a Serious Detour for Auto Parts Retail [WSJ]
2021 Mercedes S-Class Shows Its Face Officially, Debuts Later This Year [Car and Driver]
