By on July 31, 2020

The automotive industry has borrowed an estimated $132 billion since the world started taking the coronavirus more seriously, according to a recent analysis by Bloomberg.

Despite migrating around the planet months before anyone thought to close down a single airport or suggest masks were necessary, March is broadly viewed as the start of the pandemic in the Western World, as that’s when most governments started taking direct action and businesses started looking for handouts. Still, it’s exceptionally difficult to follow the money if you didn’t devote yourself entirely to the task of tracking payments while under shelter-in-place orders.

We do know that a lot of money was being thrown around, however. Car dealerships were among the largest recipients of Paycheck Protection Program (PPP) funds in the United States, garnering anywhere from $7.5 billion to $12 billion in government aid to maintain staff. Plenty of criticism over exactly where that money went arose as the press questioned which businesses were more deserving and who was just taking advantage of the system.

But it’s only the tip of the iceberg. PPP funds don’t need to repaid unless they weren’t earmarked entirely for payroll purposes; the government also used the program to send over $600 billion to support banks in extending low-interest loans to companies during the pandemic. The automotive industry was one of the largest beneficiaries of that arrangement.

(Read More…)

By on April 20, 2020

Volkswagen Group has announced that its sales declined 23 percent against the previous year, to 2 million deliveries, from January through March of this year. Based upon last week’s assessment of the ailing European market, the region seems to have contributed quite a bit to VW’s downfall. However, the company said it is optimistic that the Chinese market will soon recover as the coronavirus pandemic loses strength in the region.

As the manufacturer’s largest market, Volkswagen has a lot riding on China coming out of this in once piece. There certainly have been a surplus of articles claiming the nation is on the fast track to economic restoration, but we’ve also heard enough conflicting reports on the status of its convalescence that it’s difficult to feel confident of anything. What exactly is in store for VW and other automakers doing business in China? (Read More…)

Recent Comments

  • DenverMike: It’s just a theory. Except suppose they go directly from entry level Fords to entry BMWs? Or entry...
  • MKizzy: Sounds like this road will serve as a test case for the “road of the future.” If engineers cannot...
  • Superdessucke: Not to brag but I’ve been saying Ford, FCA, and GM made a big mistake abandoning low cost cars....
  • Superdessucke: Correct. An unreliable Fiesta could knock him right off the straight and narrow. No one likes paying...
  • Superdessucke: This is most famous as the car John Travolta recorded crashing in the 1981 movie Blow Out.

New Car Research

Get a Free Dealer Quote

Who We Are

  • Matthew Guy
  • Timothy Cain
  • Adam Tonge
  • Bozi Tatarevic
  • Chris Tonn
  • Corey Lewis
  • Mark Baruth
  • Ronnie Schreiber