CoVid-19 Industry Updates

CoVid-19 Industry Updates (169)

The National Association of Manufacturers is calling for additional aggressive actions from the federal government to help the industry respond to COVID-19 and future public health emergencies. 

Among the additional actions in the NAM’s updated and expanded “COVID-19 Policy Action Plan Recommendations,” the NAM is requesting the federal government create the “Manufacturing Resiliency Fund,” which would include $1.4 trillion in loans to provide desperately needed liquidity to manufacturers and small businesses, protecting the nearly 13 million men and women working within the industry and ensuring their financial security. Manufacturers are also calling on the government to adopt a federal designation that deems the manufacturing supply chain “essential” to help mitigate any interruptions in providing the supplies that are critical to the health and safety of America.

Prime Motor Group announced they will immediately begin “Prime Pickup”, a vehicle pickup and delivery service.  Cars can be delivered to customers’ locations for test drives and, of course, newly purchased vehicles can be dropped off at a customer’s front door.  In addition, if autos are in need of repair or maintenance, Prime employees will pick them up and drop them off when service is complete (mileage restrictions may apply).

Prime has already instituted precautions in the wake of the COVID-19 outbreak. These range from employee health and safety protocols to extra sanitary measures in all areas of its dealerships. Cars that are being delivered or serviced will be sanitized as much as possible.  Particular attention will be paid to “high touch” areas such as steering wheels, door handles, gear shifts, etc.

GM, Ford, and Tesla said this week that they are “exploring” ways of ramping up production of ventilators amid fears the devices might become scarce in the U.S. in the COVID-19 pandemic.

Late Wednesday, Tesla's CEO Elon Musk tweeted the Silicon Valley automaker “will make ventilators if there is a shortage.”

The life-saving ventilators are easy to produce but it will take time to retool factories into production. Nor is it clear how long it would take for the car companies to retool themselves for producing medical supplies, but Ford and GM have been in discussions with the White House about the possibility. The UK has also asked automakers and other manufacturers to help meet the need for essential medical equipment.

The federal government has the authority to compel manufacturers to produce such equipment under the Defense Production Act reinstated by President Trump on Wednesday. "We'll be invoking the Defense Production Act, just in case we need it," Trump told reporters at a White House news conference. "It can do good things if we need it."

Honda released a statement on Wednesday morning saying it’s closing all of its automotive production plants in North America for six days due to an “anticipated” drop in demand. The shut-sown will reduce vehicle output by about 40,000.

Honda says it will pay all 27,000 workers across the closed facilities during the shutdown.

After an autoworker employed at Fiat-Chrysler's Sterling Heights Assembly plant in MI tested positive for coronavirus, FCA has closed the plant for workers safety.

Workers at an FCA plant walked off the job on Tuesday, March 17th over safety concerns pertaining to CoVid-19.  On Sunday the UAW's president released a statement that the union had requested that FCA, Ford, and GM close the plants for a 2 week period starting immediately. Detroit's big three automakers have chosen to not shutter their plants.

Late Tuesday night the UAW and the automakers agreed to a partial shut-down, in a statement the UAW said the agreement includes  "New measures that will increase adherence to CDC recommendations on social distancing in the workplace."  The measures include “Rotating partial shutdown of facilities, extensive deep cleaning of facilities and between shifts, extended periods between shifts, and extensive plans to avoid member contact."

The agreement came after UAW President Rory Gamble went public over his frustration with the big Three. Gamble had warned he would take unilateral action if the automakers did not do more to secure hourly workers on factory floors.

The agreement allows the automakers to keep building profitable models such as Ford’s F-150 pickup, Fiat Chrysler’s Jeep Wrangler and GM’s Cadillac Escalade at a reduced pace.

FCA released the following statement Tuesday evening, "Following several days of proactive discussions with our UAW partners focused on providing a safe environment for our employees, we have agreed that in addition to our extensive current protocols to protect our employees, FCA will implement a series of shift pattern and production changes across our manufacturing plants in the United States. These changes, which include rotating shifts to allow for greater separation of employees and further enhancing our new sanitation protocols, are focused on providing a safe environment and peace of mind to our employees at their place of work."

Gm confirmed on Tuesday that two of its salaried employees have tested positive for the virus. GM, FCA, GM all have committed to sanitizing working conditions more. The automakers have allowed salaried employees to work from home to reduce their risks of exposure.

With things changing at a dizzying speed, the big Three may end up shuttering the plants any day.




Leaders from the National Auto Auction Association, Manheim, ADESA and several independent auctions, held a conference call on March 16 to discuss the continuing challenges of the COVID-19 (coronavirus) pandemic.

Auto auctions who move ahead with physical sales should take certain precautions in light of ever-changing guidelines over COVID-19 (coronavirus), according the NAAA’s general counsel.

Frank Hackett, CEO of NAAA, said auctions have asked NAAA to help facilitate weekly discussions about issues related to the coronavirus and restrictions placed on businesses.

He said the challenge for auctions to knowing what restrictions apply to them or how to comply.

“So, we’ve been interpreting a lot of the governors’ directives and using our counsel to do that,” Hackett said. “We have to look at that and figure what’s the best way to respond to that.”

NAAA General Counsel Thomas Lynch III released a letter about the call, as well as news that came after the call.

“The guidelines on this issue have been changing from day-to-day and hour-to-hour and the Center for Disease Control issued new guidelines on Sunday (March 15) recommending that gatherings of 50 or more people should be postponed or canceled for the next eight weeks or so to prevent the spread of the (coronavirus),” Lynch wrote.

He added that guidelines have become more restrictive over time, including restrictions for some businesses to cease operations.

Maryland Gov. Larry Hogan’s announcement shortly after the call indicated that authorities ranging from local and state police to the National Guard would be enforcing his executive order prohibiting gatherings of more than 50 people.

Other states have issued similar restrictions.

Hackett explained that auctions don’t always fall into certain categories that are part of a state’s restrictions.

For example, an auction may have a restaurant inside its facility that falls under a restriction, even if the auction itself doesn’t.

Lynch offered recommendations for physical sales.

“… if you do proceed with the sale, there are certain precautions you should take that should include identification of those areas in your facility where you may have a congregation of people and the risk may be the greatest of potential exposure,” he wrote. “Those locations would include your lobby or areas where badges are issued, lunchrooms, bathrooms and even in the lanes, if you are conducting actual auction sales and not virtual sales. You may want to consider having extra sanitation and wash stations, more toilet facilities, and a means of identifying where the greatest risks may exist in your business, whether it is with customers, vendors, employees or independent contractors.”

Lynch also advised auctions to make sure they protect themselves legally in the wake of these restrictions.

“With this as the background, we recommend to our member auctions the following: if you are considering conducting a sale in the upcoming weeks at which more than 50 people maybe in' attendance, you would be well-advised to consult with counsel and/or your state and local regulatory officials to ensure that you understand the current state of directives that are applicable to your location,” he wrote.

NAAA also encourages auction leaders to make sure to maintain a diary or journal to record or document conversations with local and state officials when they speak with them. That should include the day, time and name of the person the auction official contacted, as well as the auction staffer who spoke with the official and what was said.

Hackett said NAAA will continue to provide updates on coronavirus and offer information for auctions.


Many of the country's largest auto manufacturers have announced this week that buyers of new vehicles that have been affected by the CoVId-19 shutdown will have options. Numerous ideas are being floated from delaying the first payment, rescheduling payments, to zero-interest loans. U.S automakers are looking to boost new auto sales as China reels from a 79% drop in domestic auto sales caused by their CoVid-19 shut-down.

  • On Friday Hyundai Motor Co announced it is deferring payments for 90 days select new models and will provide up to six months' relief on payments for customers that are laid-off due to CoVid-19.
  • On Monday Ford Motor Company followed suit announcing it is offering the option to customers to delay their first payment by 80 days. Details are on Ford's Credit Support website.
  • General Motors made a statement that they are working with customers on a case by case basis and will also be providing payment relief to customers affected by the CoVid-19 shut-down.
  • General Motors is going to offer zero-interest loans for up to 84 months, in a deal available to customers in top credit tiers.
  • Nissan and Toyota also stated they will be providing relief options to customers affected by the virus, including deferred lease payments and extensions on loan payments.

There is another group of car owners that will need payment relief in some capacity in the coming months. 26 percent of all auto loans issued in 2016 were high-interest subprime loans taken out by low income and poor credit score buyers. Seven million Americans are at least 90 days late on their auto loan payments, according to a report by the Federal Reserve Bank of New York. These 7 million loans account for 4.5 percent of all auto loans in the U.S. Borrowers with the lowest credit scores have seen the fastest acceleration on auto-loan defaults.

For America's low-income workers having a car is often a necessity for keeping a job and the shut-down of restaurants and other service industry businesses could exacerbate an already growing issue with sub-prime auto loans.



CEO Steve Jordan of the National Independent Automobile Dealers Association told Used Car News via email on March 16 the group is doing several things to address concerns about COVID-19.

“We are revisiting our conference planning and strategy now that the CDC has issued its guidance to cancel or postpone any event with more than 50 people for 60 days,” Jordan said.  “Our event is beyond that window, but the effects to the industry are still yet unknown.”

This followed an earlier email from Jordan discussing NIADA’s overall strategy.

“Externally, we are working on a high-level document of generally recommended best practices for our dealer members based on widely accepted WHO and CDC guidance, which we’ll release shortly,” he stated. “Internally, NIADA has instituted a 30-day travel ban, and we are prepared to assist any NIADA staff member who requires a quarantine to work remotely in an effort to maintain continuity of their work.  We have put an ad-hoc response team in place that meets daily to review any ongoing concerns around the virus and to manage the NIADA response to any new developments accordingly.

“Each NIADA 20 Group meeting is being monitored on a case-by-case basis and management is working with members to make the best, informed decision for the group. All other NIADA events including our 2020 Convention and Expo in June in Las Vegas, our National Policy Conference in September in D.C. and our NABD Fall show are beyond the current travel ban and have not been disrupted in any way.”

The U.S. Small Business Administration is offering relief for businesses struggling with the effects of the coronavirus (COVID-19).

SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance for a small business. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. The SBA is offering designated states and territories low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of COVID-19. Upon a request received from a state’s or territory’s governor, SBA will issue under its own authority, as provided by the Coronavirus Preparedness and Response Supplemental Appropriations Act that was recently enacted, an economic injury disaster loan declaration.

The declaration’s issuance makes loans available to small businesses and private, non-profit organizations in designated areas of a state or territory.

Once a declaration is made for designated areas within a state, information on the application process will be made available to all affected communities. These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75 percent for small businesses without credit available elsewhere; businesses with credit available elsewhere are not eligible.

The United Auto Workers (UAW), General Motors Co., Ford Motor Company and Fiat Chrysler Automobiles (FCA) announced they are forming a COVID-19/Coronavirus Task Force to implement enhanced protections for manufacturing and warehouse employees at all three companies.

UAW President Rory Gamble, GM Chairman and CEO Mary Barra, Ford Executive Chairman Bill Ford, Ford President and CEO Jim Hackett and FCA CEO Michael Manley will lead the task force.

“Workplace health and safety is a priority for us every day, and all three companies have been taking steps to keep the COVID-19/coronavirus out of their facilities and during this national emergency, we will do even more working together,” said Gamble, who convened the leaders of all three companies. “We are focused on doing the right thing for our people, their families, our communities and the country.”

In a joint statement, the leaders of GM, Ford and FCA said, “This is a fluid and unprecedented situation, and the task force will move quickly to build on the wide-ranging preventive measures we have put in place. We are all coming together to help keep our workforces safe and healthy.”

The joint task force’s areas of focus will include vehicle production plans, additional social distancing, break and cleaning schedules, health and safety education, health screening, food service and any other areas that have the potential to improve protections for employees.