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Top Stories
Auto Trade Groups Ask Trump for Clearer Guidance on 'Essential Services'
A coalition of trade groups representing the nation's automobile dealers has asked President Donald Trump to clarify that certain sales and leasing activities at franchised dealerships are considered essential services during the coronavirus pandemic. In a letter sent to the White House on Monday, the group — consisting of the National Automobile Dealers Association, American International Automobile Dealers Association, Alliance for Automotive Innovation, National Association of Minority Automobile Dealers and American Truck Dealers — expressed its appreciation for federal guidance on March 19 that listed vehicle manufacturing, supply manufacturing, maintenance and repair facilities as essential services.
Source: Automotive News
Negotiators Aim to Wrap Up Talks Tuesday on U.S. Stimulus Package
Top lawmakers and the Trump administration aim to complete a colossal stimulus package worth at least $1.6 trillion on Tuesday in an effort to shield the U.S. economy from the most drastic consequences of the coronavirus pandemic. Treasury Secretary Steven Mnuchin and Senate Minority Leader Chuck Schumer (D., N.Y.), who have led the negotiations for Republicans and Democrats, emerged from another set of late-night negotiations Monday saying they were within striking distance to a deal.
Source: The Wall Street Journal
Editor’s Note: As Congress closes in on reaching a deal on the Senate Phase 3 (CARES) Act, NADA continues to promote small business interruption loans, employee retention and tax relief provisions. NADA continues to receive positive reports that these provisions remain in the compromise bill in progress. Yesterday, to influence the Senate bill, Speaker Nancy Pelosi (D-Calif.) introduced a $2.5 trillion stimulus plan that includes delaying mortgage and car payments. The Speaker’s bill includes broad progressive priorities and is considered a marker for future bills; although some provisions, such as restrictions on assistance to large corporations and expansion of unemployment insurance, are likely to be included in the Senate bill currently under consideration. NADA will closely review the Senate text as it finalized and will provide updates as they become available.
California Showrooms Closing as More States Issue Stay-At-Home Orders
The California New Car Dealers Association is recommending its members close 1,400 showrooms across the state to comply with the state's indefinite stay-at-home order and closure of nonessential businesses to slow the spread of the coronavirus. The move, if followed, could put thousands of the nearly 140,000 people employed at California dealerships temporarily out of work through layoffs, furloughs or terminations.
Source: Automotive News
Auto Shopping Drops 25% First Half of March
Overall automotive shopper volume for the first 15 days of March was off 25% compared with the same period in 2019, according to Comscore, an analytics company and market-data provider. It saw declines in all but one vehicle segment. Full-size pickup shoppers remained ahead of last year’s pace, likely buoyed by incentives and personal use needs. “For the first half of March 2020, which includes the beginning of self-quarantines and social distancing, in-market shopper volume fell to its lowest level in more than 6 years, a clear indicator that March 2020 sales – and beyond – are in for some turbulence ahead.”
Source: WardsAuto
CDK Cuts Dealership Fees; CEO Slashes Salary to $1
CDK Global Inc. CEO Brian Krzanich is reducing his salary and cash bonuses to $1 for the remainder of 2020 as the dealership technology company prepares to waive or reduce fees paid by dealerships in April. CDK, which provides dealership management and customer relationship management systems, said this week Krzanich's voluntary salary reduction will be effective from April 1 through the end of the calendar year. The company said Krzanich requested the move.
Source: Automotive News
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