I am making most updates to Aftermarket Intel in a daily, single, easy-to-scroll post to give readers the most efficient updates on the news from the automotive aftermarket.
The lastest news is seen at the top of this post.
8:04 pm Eastern Daylight Time
IMR Inc. Issues Latest Insight on Automotive Parts and Service
Consumer Purchasing Behavior During an Economic Downturnn
IMR Inc. has published its latest insights on automotive parts and service consumer purchasing behavior during an economic downturn.
This report focuses on how consumers changed their automotive maintenance behaviors in the recessionary market of 2009 in the U.S., compared to the prior non-recessionary years; a period of economic downturn akin to the current market state due to the global COVID-19 pandemic.
“During these unprecedented times, we’ve received a lot of questions from our friends in the automotive industry as to where we could be headed,” said IMR Inc. CEO Bill Thompson. “We know that this information can provide some insight and clarity to assist businesses as they develop strategies for the important decisions they’re making today, as well as those they’ll make in the months to come.”
IMR Inc. has collected critical consumer automotive maintenance behavior since 1975 to provide a robust portrait of replacement rates, parts purchasing and installation habits, demographics and attitudinal statements for DIY (do-it-yourself) and DIFM (do-it-for-me) consumers.
For both DIY and DIFM consumers, the report details changes in channel share, demographics, vehicle attributes, online purchasing, consumer vehicle maintenance attitudes, the current state of delayed maintenance, the current automotive DIY customer profile including media habits, internet usage, activities, social media engagement and more.
The report illustrates how consumer behaviors can change during economically stressful times, providing insights to help inform on potentially critical business decisions for the automotive industry.
Access the entire report here, and for more information on IMR Inc., visit automotiveresearch.com. The most recent Insights from IMR Inc. can be found here.
12:57 pm Eastern Daylight Time
12:54 pm Eastern Daylight Time
12:43 pm Eastern Daylight Time
The Group Training Academy Offers Free “All Access” Pass
The Automotive Parts Services Group (The Group) is offering all Federated Car Care Centers and Pronto Auto Service Centers a free 30-day all-access pass for The Group Training Academy web portal.
“We want to thank the Pronto Auto Service and Federated Car Care members who work hard every day for the families and businesses who rely on their vehicles to stay on the road and serve their communities,” said Larry Pavey, CEO of the Automotive Parts Services Group. “The free all-access pass will give these shops the opportunity to experience The Group Training Academy first hand, helping them to stay up-to-date on the latest training and technology.”
The Group Training Academy all-access pass includes hundreds of hours of online training that can be accessed anytime, anywhere. To register, visit www.TheGroupTrainingAcademy.com and click on the All Access banner. At checkout, the all-access pass will be provided at no extra charge.
IF YOU HAVE AN EVENT CHANGE OR NEWS TO SHARE, PLEASE EMAIL EDITOR & PUBLISHER MARK PHILLIPS AT a MARK@LPNEWMEDIA.COM.
11 am Eastern Daylight Time
Bill Hanvey, president and CEO of the Auto Care Association, sent members important information this morning:
|Congress has now provided billions of dollars for small business loans and credits to help employers keep their employees on payroll, even though COVID-19 has had such a devastating impact on cash flow. The Auto Care Association is working with our outside law firm to provide a detailed webinar that can help our members answer questions that they may have about the loans available to them. In the meantime, we wanted to get a baseline of information out to you as quickly as possible on two key programs: Paycheck Protection ProgramEconomic Injury Disaster Loans If your business has 500 or fewer employees, then it will qualify as a small business for the purpose of these loans. The two prominent loans offered to small businesses under COVID-19 relief legislation are the Paycheck Protection Program (PPP) loans and the Economic Injury Disaster Loans (EIDL). |
Paycheck Protection Program (PPP)
If you are a small business going through hardship right now, securing a PPP loan should be your focus. Qualifying entities are eligible for up to 250% of their average monthly payroll cost during the period between Feb. 15, 2020 to June 30, 2020. The loan amount is capped at $10 million. These loan amounts can be used for employee compensation, annual or sick leave, payment of retirement benefits, payroll taxes, and payment of interest on mortgage obligations, rent, utilities, and interest on pre-existing debt obligation.
What makes the PPP program particularly advantageous is that your loan may be forgiven by the federal government. The federal government will forgive 8 weeks of covered expenses to help you and your business. For any remaining amount not forgiven, the maximum loan term is 10 years and the maximum interest rate is 4%.
It is important to note that the amount of your loan will be reduced if there is a reduction in staff or if you’ve reduced salaries by more than 25%. The good news is this: if you take action before June 30, 2020 to bring those employees back on payroll, and/or restore salaries that had been cut by more than 25%, then you can ensure that you will receive your maximum loan forgiveness.
We encourage our members to contact their SBA-approved lenders as soon as possible to discuss your cash flow needs and start gathering documentation to apply for a PPP loan.
Economic Injury Disaster Loans (EIDL)
Prior to the creation of the PPP program, the Coronavirus Preparedness and Response Supplemental Appropriations Act, which was Phase 1 of the virus legislation actions, declared that coronavirus is deemed a “disaster” for eligibility purposes of Economic Injury Disaster Loans (EIDL). EIDL are low-interest loans of up to $2 million that are available to pay for expenses that could have been met had the disaster not occurred. Unlike the PPP loans, EIDL are not restricted to covering expenses for the period of time from Feb. 15 to June 30. Within this program, there is a $10,000 grant that does not have to be repaid, to provide small businesses with quick, much-needed capital. The $10,000 will be disbursed within three days of receiving the EIDL application. You may apply for an EIDL directly with the SBA.
It is important to note that this EIDL grant will be taken into consideration when calculating an entity’s PPP loan forgiveness amount. Further, you cannot use two SBA loans for the same purpose. For example, if you use your PPP to cover payroll for the 8-week covered period, you cannot use a different SBA loan product, such as an EIDL, for payroll for those same costs in that period. If an entity has already applied for the EIDL they may convert it into a PPP loan for a limited period of time.
Companies can find additional helpful information through the following resources:“The Small Business Owner’s Guide to the CARES Act,” created by the U.S. Senate Committee on Small Business and Entrepreneurship SBA District Office LocatorSmall Business Development Centers, which provide business counselors to guide you through this uncertain time. For additional assistance, please reach out to Gabrielle Hopkins, vice president, federal affairs, at email@example.com.
This information and future bulletins are offered to our membership to provide a high-level summary of the primary provisions of this relief legislation. Please consult your legal and financial advisors or SBA-approved lenders for detailed information and confirmation of eligibility.
9 am Eastern Daylight Time
The Third Annual Global Reman Day Goes Virtual on April 9, 2020
The Remanufacturing Industries Council, along with six other remanufacturing associations, are supporting a day-long virtual celebration on April 9, 2020. Reman Day was established in 2017 to educate the world about the value of remanufacturing and draw attention to the critical role it plays in the circular economy. This one-day event will include an online learning experience that emphasizes the importance of industry best practices and professional development. Learn more here.