As we progress through this unprecedented national health crisis, CADA wanted to provide dealers with an outlook of the activities being worked on by your national association. We also wanted to highlight key elements as we start the process of recovery.
From the start of the crisis, CADA and our provincial association partners have been laser-focused on four core priority areas: Dealer Liquidity, Employment Supports; Recovery and Information. These have been the main results:
- CADA 360: two-month employee benefits premium payment waiver for those dealers on the CADA 360 EB program (64% of rooftops in Canada).
- CEWS: expansion of the Canadian Emergency Wage Subsidy to 75% and broadening of the selection criteria thereby ensuring the inclusion of almost all dealerships.
- HST/GST: deferment by three months providing vital liquidity to all dealers.
- DSSA: contractual clarifications were given by all OEMs.
- Banks/Captive Finance Companies: in response to CADA pressure and federal liquidity, most institutions have started to provide financial relief on floor plans, term loans and mortgages and three lenders have already adjusted their processes to allow for fully online transactions.
- Essential Service: maintain maximum dealer operations as an essential service. This effort was combined with provincial and federal initiatives that have maintained repair and service operating robustly in most regions.
- CEBA: expanded the selection criteria of the Canada Emergency Business Account thereby granting access to some single-point dealers with payrolls under $1.5 million.
- TWS: established the Federal Temporary 10% Wage Subsidy which is a three-month measure that will allow eligible small dealers to reduce the amount of payroll deduction required to be remitted to CRA.
- BCAP: expanded Business Credit Availability Program to provide $40 billion of support through the Business Development Bank of Canada. BDC is working with private-sector lenders to coordinate on credit solutions for loans up to $6.25 million per individual dealer.
- Business Income Tax deferral: changes allowing dealers to defer, until after August 31, 2020, the payment of any income tax amounts that become owing on or after March 18 and before September 2020. No interest or penalties.
As we start to enter the process of recovery, CADA is concentrating on:
- "Back-to-Work": design and communicate health and safety protocols for all areas of dealership operations. These are currently being elaborated on a provincial and federal level and are the basis of our discussions with the various authorities as they evaluate the gradual re-opening of activities. Two specific examples are the exemplary work CCAQ has done in Quebec that has enabled dealers in a first step to re-open parts of their service and maintenance operations on a by-appointment basis and the discussions TADA is having with Ontario regarding the step-by-step resumption of operations, including sales. It is important to point out, that these activities have been initiated several weeks ago and are being done as an industry-wide approach in close coordination with the manufacturers and suppliers and in lockstep with public health officials.
- Market liquidity: we are continuing the work with banking and lending institutions to relaunch the Canadian Secured Credit Facility which provided significant liquidity to the automotive marketplace during the 2008-09 financial crisis.
- Recovery: together with industry partners, we are advocating for several concepts that can reactivate the marketplace such as a federal job-loss insurance program, HST/GST exemption for vehicle purchases and a federal scrappage program to replace older vehicles with newer ones.
- Information: continue to provide relevant and detailed information on all support programs available and how to access them as well as individual examples from across the networks.
During these times of crisis, you might also be confronted or have already faced divergent efforts from some industry players pursuing their own individual or narrow priorities. Rest assured that much work is still to be done, and your national and provincial associations have only one united goal: to continue fighting on your behalf.