Next Wednesday, July 1 the United States-Mexico-Canada Agreement (USMCA) will officially enter into force, replacing the 26-year-old North American Free Trade Agreement (NAFTA). 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.
Paycheck Protection Program
Late last week, legislation was introduced that would allow businesses with fewer than 100 employees to apply for a second Paycheck Protection Program (PPP) loan. The Prioritized Paycheck Protection Program Act was introduced on June 18 by Senators Ben Cardin (D-MD), Jeanne Shaheen (D-NH) and Chris Coons (D-DE). Eligible businesses must have already expended an initial PPP loan, or be on pace to exhaust the funds, and must show a revenue loss of 50 percent or more due the pandemic. It's unclear whether the bill will gain traction. Additional information on the PPP can be found here.
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
"We don't think European [automobile] imports are a threat to national security."
-Governor Matt Blunt, President, American Automotive Policy Council (Wards Auto)
Must Listen
Check out the latest Beltway Talk podcast featuring an overview of 2020's second quarter auto sales from Cox Automotive's Charlie Chesbrough.
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:
Subaru of America and Miller Hill Subaru in Minnesota partnered to provide more than $100,000 in donated vehicles, components, software and equipment to the Lake Superior College Automotive Services Program.
Mohawk Honda in New York hosted a virtual pet adoption clinic with the Mohawk Hudson Humane Society.
Mazda Toyota Manufacturing recently donated child-sized masks to Heart of the Valley YMCA's Youth & Child Care Program in Alabama.
Williams Auto Group in Pennsylvania donated over 30,000 meals to the Food Bank of Southern Tier through Toyota Fights Hunger.
Honda and GM have partnered to make and donate thousands of bottles of hand sanitizer to health care facilities in Ohio and Michigan.
Toyota recently partnered with a Michigan food bank and donated $140,000 to support its Summer Food Service Program.
We want to hear more about how you are supporting your local community during this difficult time – tweet us at @AIADA_News.
