Today, NADA President and CEO Peter Welch spoke with Automotive News Publisher Jason Stein on the publication’s Daily Drive Podcast highlighting NADA’s efforts to support dealers during the COVID-19 pandemic.
In sharing what dealers on the ground are saying, Welch shared that “liquidity is the name of the game” as capital preservation is becoming increasingly challenging for dealers as they manage the financial stress of the outbreak, including an abrupt shutdown is some states.
Welch also outlined how NADA is helping advocate for dealers and also helping them navigate the financial opportunities available, including in the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
“We were able, together with the rest of the industry and the Administration, to secure two incredibly large pieces of legislation,” shard Welch. “One, a $2.2 trillion stimulus package that literally went through drafting in Congress to under the President’s pen signature in about ten days; of course, the first one, the Families First Coronavirus Response Act, is an entitlement act granting enhanced sick leave and expanded FMLA benefits.”
In looking to what the near future holds, Welch shared: “We don’t want to downplay the importance of all of the national efforts, stamp out the pandemic, save as many lives as possible and preserve the economy, but from my vantage point today, it looks to me that the second quarter basically April, May and June are going to be total write-offs.”
“Hopefully what we will see in the third quarter, we will start to stair step ourselves back to life; we’re getting some indications of this happening for instance in the Chinese markets,” Welch added in regard to his projection for business as usual. “I would hope that by the fourth quarter, we’re into full-blown recovery.”
Listen to the entire interview here.