July 1 recycler UPDATE

State Reopenings:

• Sixteen states have paused their reopening plans after experiencing dramatic increases in COVID-19 cases. Arizona, Arkansas, California, Delaware, Florida, Idaho, Maine, Nevada, New Mexico, New Jersey, North Carolina, Louisiana, Tennessee, Texas, Virginia, and Washington have all either halted or rolled back reopening plans. As of now, no state has reimplemented prior shelter-in-place orders.

 
COVID-19 Relief:

• A bipartisan group of senators are coming close to reaching an agreement to provide more aid to small businesses. The draft legislation would restart the Paycheck Protection Program and create a new type of long-term government-backed loan. However, banks are pushing back by warning Congress that they have “PPP fatigue” and do not want to deal with the added complexity of managing more government-backed loan programs. Banks have indicated that they would prefer that the government shift to a grant model rather than treating small business financial support as a loan.

 

• ARA recently put together a guide detailing important information relating to the SBA’s Economic Injury Disaster Loan (EIDL) program. This guide is designed to assist your business in evaluating whether an EIDL is right for you. The guide provides background information on the EIDL program and also describes its costs and benefits. You can download it HERE.

 
Infrastructure:

• As House Democrats continue to press forward with their $1.5 trillion infrastructure bill, the White House has threatened to veto the bill. In a statement of administration policy, the Trump Administration strongly opposes the proposed bill for the following reasons: (1) it is biased against rural America; (2) it is almost entirely debt-financed; (3) it fails to tackle the issue of unnecessary permitting delays; (4) it is full of “wasteful ‘Green New Deal’ initiatives that would impede economic growth.” Senate Majority Leader McConnell echoed the White House’s sentiments by stating the bill would not be taken up by the Senate and that the bill was “drawn up to show fealty to the radical left.” 

 
Automotive:

• Toyota Motor Corporation announced that its Japanese factories are expected to return to 90% of target output for July. Compared with the month of June (when 25 production lines closed), only six production lines will see suspensions during July.

 

• Last Thursday, California regulators approved a new rule mandating that truck manufacturers increase the proportion of electric trucks sold in the state through 2035. The rule will begin in 2024 and will require 5% to 9% of truck sales to be zero-emission models. The rule requires that by 2035, 55% of light trucks, 75% of medium and heavy-duty trucks, and 40% of tractor-trailers will have to be zero-emissions. For more information click here.

 

• Online used car retailer, Carvana, has recently launched a direct-purchase platform that will give independent and franchised dealers the ability to buy wholesale vehicles in online auctions using “timed bids.” The platform, called CarvanaACCESS, was co-developed by Carvana through a partnership with Manheim Auctions. The auctions will be accessible by registered dealers and other wholesale buyers.

 
If you have an article or piece of news that you think is important to automotive recyclers send an email to Emil@a-r-a.org.

FOR MORE IMPORTANT INFORMATION, VISIT ARA's COVID-19 DASHBOARD