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Dealers brace for slow sales due to virus, want to be exempted from shutdowns

9K views 62 replies 26 participants last post by  InCogKneeToe 
#1 ·
https://www.detroitnews.com/story/b...rs-want-exemption-virus-shutdowns/2863204001/


Washington — Auto dealers are bracing for slower sales in the face of the coronavirus pandemic. They are also asking to be treated as "essential operations" and left out of government-ordered shutdowns.

Nationwide, dealerships are resorting to bringing sanitized test-drive vehicles to the homes of potential buyers who are leery of visiting showrooms in the era of social distancing and self-quarantines. They working out financing over the phone or internet.

Facing the prospect of expanding shutdowns as state and local government scramble to prevent the further spread of the virus, the National Automobile Dealers Association and Alliance for Automotive Innovation, which represent dealerships and carmakers respectively, said the Trump administration should make sure dealerships are exempted from any state or federally imposed restrictions on U.S. residents' movements.


"As our nation continues to confront the coronavirus’s challenges, we want to underscore the importance of ensuring that consumers have access to a safe and well-functioning motor vehicle fleet," NADA President Peter Welch and Alliance for Automotive Innovation President John Bozella wrote in a letter to the president.

"Motor vehicles, both new and old, are critical to ensure that the public can get food and other necessities of life, as well as to continue to interact with one another in a manner consistent with public health officials’ recommendations," the letter continued. "Given the importance of safe transportation in addressing the coronavirus outbreak, we have an obligation to ensure that motor vehicles remain safe and are properly maintained."

(More at Link)
 
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#2 ·
Ford Canada, notified us this morning that All March Incentives conclude today.

Meaning "New Exciting Incentives March 21st"

Or "Stay at Home Dealers"

Most of Ford Canada Corporates are working from Home already. So without Sales, things would go much easier.

It is just "Service and Parts" that need to stay open for "Essential Services"

Supply and Demand, will work it's self out in 2-4 months.

Any other Dealership Employees feeling this?
 
#3 ·
I think if they can demonstrate that they can transact business in a coronavirus safe way they can stay open, safe for both the employees and customers. I’m very torn – it is imperative to wipe out the coronavirus as people are dying. But at the same time this is devasting the economy and can lead us into a worldwide depression unlike anything we’ve ever seen, people have to make money.

I agree with InCogKneeToe that auto repairs are essential, but is buying a new car that essential to risk further spreading the virus? However, the stay at home dealers, etc. could work.

In a similar vein I did use the carwash this past Sunday. I brought Clorox sanitizing wipes to cleaning the steering wheel and the gearshift and my hands. And I immediately rolled down the windows as I drove away to clear the air in the car (plus they leave the doors open as they clean the interior). While I’m certain the Clorox wipes are not good for the leather and my hands I do feel like I’m greatly minimizing the chance of transmitting the virus. Similar precautions can be taken for car repairs… I’m not a mechanic, but it seems like the repair bays are separated by a good 10 feet, so is it correct to say a good chunk of the day is spent reasonably separated from coworkers? What do mechanics/dealer employees think? Plus, if not to cold, the garage doors can be kept open for additional ventilation.
 
#5 ·
Unless they are throwing 30% off on the hood, I see no reason to buy a car right now. This is the struggle the dealerships are going to encounter. A lot of people in the restaurant/hospitality field are getting laid off, and with the financial markets in the dump, a lot of people on fixed income will hold off as well. This is going to severely stress test the entire network, from manufacturers to dealers to suppliers.
 
#6 ·
That's the other side of this.

Are the March Incentive Concluding Today (Mar.20th) because 20-30% is going on the hoods tomorrow? "Keep America Rolling"

I side with the "Send the Note to Dealers, Stay Home" theory. More than Blow Out in the midst of a Blow Out.

The shortage of vehicles 2 weeks/months from now is going to be much like 1994. When we had a limited supply of GMT400's. a Customer would come in the Dealership and ask "What's the price on that Sierra"

Our reply would go something like "Isn't the Price right there on the Window?"
 
#7 ·
IMHO the DEALERS are ONE operation that SHOULD CLOSE IF we close all other retail operations
* the SERVICE departments should get an essential service listing BUT not selling NEW cars
both from the factories shutting down AND dealers are a likely spot for a virus to spread and VERY HARD to disinfect properly IF we deem selling cars essential what about HOME HARDWARE? or the NIKE STORE as we need new kicks as we go out for our solo walks to not go bat crazy
 
#11 ·
Nobody is going to work, nobody is driving, cars don't break-down or need repair sitting in the driveway.

I had to go into the office for a few hours, at 2:00 in the afternoon, the traffic on the main road looked like 7:00 am on a Sunday morning.

I had to drop something off at the post office and buy some fertilizer............ post office, empty - Hardware store, maybe 10 people (not counting employees).

It's like a ghost-town, everywhere!
 
#18 ·
My strategy is do 80 and keep a placard stating you think you may have coronanvirus to show the cop when he pulls you over :)
 
#15 ·
#17 ·
Yes, I was out Thursday Night at around 8, and there was nothing going on.

But I am at work this morning, The only one here so it is sort of Self Isolation.

Living in a house with 3 Essential Service Workers, 2 Retail Food, 1 Wholesale Food, I am most likely more safe here anyways.

Ford's big news was "No payments for 3 months" (<$2250) but at the same time they clawed back $2000 cash on F series, to $7000 instead of $9000. So Ford isn't sending Dealer's home.
 
#19 ·
I don't get the restricted traveling nor the common 8PM curfew. It's not the traveling, it's public close contact. People should be fine joyriding all night long, burning cheap gas, but I guess they cannot be trusted to NOT stop somewhere and party, or something.
 
#21 ·
On the one upside of all this, I was just running errands and gas at Costco was $1.85 regular and $2.15 premium. Two weeks ago premium was around $2.75. Connecticut is one of the most expensive states gas price wise (though not even close to CA and HI), I can only imagine how cheap it is in Texas.
 
#25 ·
I predict this isolation thing will last several months, so probably not a lot of auto sales to be had. I agree that the service departments should probably stay open at least in a limited capacity. Not going to be a lot of driving going on, especially if the government ups the restrictions like I've been hearing. After this is all over, I predict another round of bailouts coming for the auto industry (and others). I bet Trump is very lenient with the conditions of any stimulus due to the conditions that caused it. Or he'll mandate that jobs move back to America in order to not repay or something. That's what I'd do. I'll be looking to buy once everything gets back to normal - hopefully by the end of the year.
 
#26 ·
It can't last months. The economy will crash, you can't borrow your way out of a murdered economy which is what our Great Leaders are doing now, way beyond their authority I might add.

If this lasts months, we'll see a depression worse than the Great Depression. Ghastly bad. Governators, big city mayors, presidents, and members of congress do not live amongst the peasants, they really have no concept of the monster they've unleashed.
 
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#32 ·
Pretty happy to be retired and quite able to live on our SS. Even have enough dividends banked to continue our draw from our investments but probably will hold off for a while. I really feel for all the folks who work in non-essentials. I just upped my regular contribution to a local food bank. Anyone who is ok might try to do something similar.
 
#33 ·
Detroit — Sales have fallen from 20 vehicles per day to five over the past week at Paragon Honda and Acura dealerships in New York City.

And now their general manager worries it could fall to zero with orders from the state of New York shutting down non-essential businesses, including his sales operations, amid the coronavirus outbreak.
"It's a disaster," said Brian Benstock, vice president of the dealerships. "There's no other way to put it."

Auto dealers across the United States like Benstock are bracing for what the outbreak has in store for their dealerships as the government expands measures to reduce the spread of the virus, foreign and domestic automakers for which they sell halt production at their plants, and customers stay home.

And while automakers have announced new incentives with deferred payments and interest to get people through dealer doors, some retailers just are hoping to survive the downturn — especially if they are forced by the government to close.





"Not everyone is going to make it through this one," United Auto Workers Local 259 President Brian Schneck has come to realize. He represents 1,400 members who work in the parts and service departments at 75 dealerships in New York, New Jersey and Connecticut.

Schneck has been fighting to keep his members employed while New York, which has the most coronavirus cases in the U.S., goes on lockdown. He had to work with the dealerships to figure out how to reduce staffing to 50%, then that dropped to 25% — and then his members found out their work wasn't considered essential enough to stay open. That changed late Thursday when the state classified fixed operations as "essential."





"It’s very tough and very taxing," Schneck said. "I made it through 9/11 and the economic recession. This has been so different and really damaging."

He expects to see about a 25% layoff across the local.


"It’s just head-spinning," Schneck said. "I just can’t believe what's happening. We can’t control it. Our members are nervous; they are sad. They need their jobs and their money."

Many dealerships say their service departments have received steady business or are slightly down. General Motors Co., Ford Motor Co. and Fiat Chrysler Automobiles are shutting manufacturing plants but have come to an agreement with the UAW to keep their parts-warehousing facilities that support dealerships open with paid voluntary shifts.

"GM and the UAW have reached an agreement that will allow us to continue delivering service and repair parts to our dealers and customers, including the police agencies, fire departments and emergency service providers who rely on our vehicles all over country," the company said in a statement.

Meanwhile, online traffic to dealerships is brisk, but sales have fallen 20%, 50% or more over the past week. At Greenwood Chevrolet in northeast Ohio, service revenues are down a third and sales have halved from what they typically are, owner Greg Greenwood said. Many customers are there because they need a cheaper used car to travel because of reductions in public transit.

"These are required purchases," Greenwood said. "When they come in to buy now they need a vehicle. They don’t have a choice."

To get people into showrooms, GM launched incentives similar to the Keep America Rolling campaign after the 9/11 attacks: 7-year no-interest loans, with deferred payments up to 120 days. Home-delivery is available.

Fiat Chrysler is offering similar incentives to GM's with 0% interest on 7-year loans on certain Jeep, Dodge and Ram models, and up to 90 days of deferred payments through the end of March.

Ford is offering six months of payment relief for customers for eligible new-car customers who finance through Ford Credit. Dealers also can receive payments for delivering vehicles instead of having them come to dealerships in March and April.

Other automakers have lessened dealer burdens by reducing monthly target for dealers, offering cash incentives and relaxing terms of dealer loans.

"It seems to me like a lot of the programs are about the uncertainty about people's employment," said Jessica Caldwell, executive director of industry analysis at auto information website Edmunds.com Inc. "Am I going to be able to make a payment on time? It's not the traditional $10,000 off. It does feel like the incentives are going to be around the understanding of rough economics times for a few months in terms of payments and whatnot."
https://www.detroitnews.com/story/b...rest-loans-struggling-dealerships/2885862001/

A slight glimpse of "What it is like"
 
#35 ·
3 weeks isn't going to be enough and everyone has to do it in order for it to work, this is where some semblance of Federal leadership comes into play. Also, these stupid forking college kids need to stay their horny asses home for a while as well.
 
#37 · (Edited)
God damnit, nobody needed to bring any politician's name into this conversation. Imma get my broom & some of y'all might get hit by the handle. :bio::

Alright, I've put out some roach motels. Don't let politics or virus conversation take over the topic. This is about the impact of the quarantine on the auto industry. Keep that in mind.
 
#39 ·
Welp, did my part today......put a deposit on a beautiful Lincoln Aviator Grand Touring (black label) today. Pearl white with mahogany interior. This is supposed to be the Wifes new ride, I'm certain to get plenty of seat time to hoon around in a nearly 500Hp SUV. We see it next week providing the world hasn't fallen apart by then.

What do I get? Honestly, the CT5-V Twin Turbo is pretty high on my list (I don't get to spend +80K like she does) or maybe a new Audi A5 sportback.
 
#53 ·
Dealerships around here seem to be open, although it is a bit hit and miss.

Had an email from the local dealer where I get service done. They've set up a pick-up and delivery of your vehicle so you dont have to bring it in. I thought that was pretty neat.

I dont think the sales departments here are really doing much. The one did advertise they would 'do a deal' completely via phone/internet and drop it off.

Not much in the way of deals yet. Ford.ca website is useless right now. Hasn't been updated since 17 March or so.

It feels like the dealers are waiting to see just how bad it is going to be before doing anything drastic.

Sent from my SM-G950W using Tapatalk
 
#54 ·
https://www.ford.ca/finance

Ford Credit Canada has been there for a while. try the link above. Offering Assistance to it's Customers.

I have watched Ford Credit's TV Commercial 20+ times, I have yet to see one from GM Financial, or Ally or TD what ever GM is using.

The Virus part of this Pandemic, is going to be a Cake Walk, compared to the Finance part of the next year or 2
 
#55 ·
McNaught CADDY / GMC in Winnipeg is advertising internet / phone car selection they they drop it off at your home for a 24 hour test drive
Hyundai /Kia is advertising a "no contact" buying experience with the car towed to you

IMHO I would be happy if all the dealers started doing stuff like that PERMANENTLY after this is over - as an alternative NOT a replacement for traditional buying methods
 
#61 ·
The local multi franchise dealer where I bought my Colorado now has a zero contact service for maintenance and car servicing

You book online and drop your keys off in a drop box outside

If you want to test drive they sanitise the vehicle for you beforehand and drop it off out the front of the dealership

This will likely only last a few more days I believe we will be in lockdown by Sunday this week

So far we're in partial lockdown of services like pubs , cinemas , cafes ect ect
 
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