Paycheck Protection Program Extended; USMCA Replaces NAFTA

You Auto Know 07/03/20

Paycheck Protection Program

This week Congress passed an extension to the Paycheck Protection Program (PPP), the small business coronavirus relief loan program, which had been set to expire on July 1st.  The program will now accept applications through August 8th, and has approximately $130 billion in remaining funds.  The PPP, which began in April, has already provided over $500 billion in loans to businesses, which will be forgiven if certain criteria are met.  Additional information on the PPP can be found here.

USMCA

On Wednesday the United States-Mexico-Canada Agreement (USMCA) officially replaced the 26-year-old North American Free Trade Agreement (NAFTA).  Late last week, concern arose that the USMCA could be interpreted to allow the imposition of tariffs on used vehicles produced under NAFTA through retroactive application of the new Rules of Origin (ROO).  AIADA joined with other industry associations in sending a letter to U.S. Customs and Border Protection requesting that North American used vehicle trade continue tariff-free.

The USMCA contains several important provisions that will impact the automotive supply chain, including increasing the percentage of automotive content that must be manufactured in North America from 62.5 percent to 75 percent, requiring that 40 percent of vehicle content be manufactured by workers making at least $16 per hour, and that 70 percent of steel and aluminum be from North America.  The USMCA also includes side agreements with Canada and Mexico that establish quotas that would exempt them from any future Section 232 tariffs on autos, should they be imposed.

As the country reopens and the U.S. auto industry begins its recovery, it's more important than ever to stay in touch with legislators.  Sign up today for a Dealer Visit and AIADA will work with you and your Member of Congress on safe meeting options.

 ICYMI

The latest AutoTalk COVID Series webinars are available now:

Paycheck Protection Program Update:  What Have We Learned and What Are We Still Waiting On

Managing Your Cyber Risk (Attacks and Scams are Up During the Pandemic)

Sanitation and Decontamination Processes to Reduce Virus Risk

An Update on COVID-19's Impact on U.S. Auto Sales

Information Security in the Virtual Selling Environment

COVID-19's Impact on the Buy/Sell Market

And be sure to register today for our other important upcoming webinars!

Quote of the Week

"America's international nameplate auto dealers look forward to working with USMCA stakeholders to ensure that the interests of their customers and employees are taken into account as the agreement enters into force...The successful implementation of USMCA matters deeply to international nameplate dealers and the 578,000 Americans they employ."

            -Cody Lusk, AIADA President & CEO (www.aiada.org)     

Must Read

Check out the latest Chairman's Blog from AIADA Chairman Jason Courter, "Count on AIADA."

Friday Feel Good

Here are JUST A FEW recent examples of how the international nameplate auto industry is doing good in communities across the US during the COVID pandemic:

Phil Long Dealerships of Colorado and New Mexico expanded COVID-19 support program, offering free vehicle interior sanitization and safety inspection to any registered vehicle owner for a limited time.  From mid-April to the end of May, the dealerships provided any employee working for a critical business or critical government a free oil change and safety inspection on registered vehicles, ultimately serving 3,600 heroes.

Fuccillo Automotive Group in New York offered complimentary installation of a vehicle disinfection system to first responders.

Nissan USA donated $55,000 to support Alcorn State University's STEM program.

We want to hear more about how you are supporting your local community during this difficult time – tweet us at @AIADA_News.

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