Auto Industry News: U.S. Stimulus Package Approved as Auto Industry Joins Forces to Support Relief Efforts

It’s been a tense month, for sure. Amid growing health concerns is a national sense of economic anxiety, as businesses around the country continue to press the pause button while the world tries to turn right-side-up again. Despite this uncertainty though, we have some positive news to report this week!

President Trump signed a $2 trillion economic relief package to deliver aid to cash-strapped Americans. Major automakers are shifting production lines and donating products in an effort to help healthcare workers. And many more small businesses in the auto industry are pitching in too: safely staying open where they can, donating cash and goods, and fighting the good fight.

$2 Trillion Federal Relief Bill 

After what seemed like weeks of heated partisan debate, U.S. lawmakers finally struck a deal and sent the largest stimulus package in American history to President Trump’s desk to be signed into law. Over the next few months, the federal package will pump an astounding $2 trillion dollars into some of the U.S. economy’s most important sectors, including small businesses and even individual people’s pockets.

“This will deliver urgently needed relief,” Trump told reporters at the White House. “We’re going to keep our small businesses strong and our big businesses strong.”

For a more complete picture of what the bill includes, what industries and sectors will benefit the most, and—most importantly for many—when those $1200 direct deposits will hit their accounts, click here.

Where Does the Auto Industry Fit In?

Many might be wondering what this historic package will do to aid the automotive industry, one of the hardest-hit global industries since the start of the health crisis. Many automakers closed factories, sent workers home to practice social distancing, and cancelled or delayed auto shows, vehicle debuts, and enthusiast events. Unfortunately, this translates to sharp declines in sales numbers that will reverberate throughout the year.

Despite the somewhat dire outlook though, many in the auto industry remain optimistic that the new relief package will help. 

“Government tends to move slowly, so we congratulate members of Congress and President Trump for reacting quickly in this time of crisis,” said National Independent Automobile Dealers Association CEO Steve Jordan in a statement. “The aid included in this legislation will make a huge difference to independent dealers as we attempt to weather this storm.”

While it’s yet to be seen exactly how this bill will benefit the auto industry, we can report that automakers did not request specific assistance, likely out of fear that it would look like Government Bailout 2.0. However, we expect they will get a a chunk of that $500 billion allocated for hard-hit industries.

We should have more comprehensive answers soon, and we’ll keep you updated as news emerges.

Detroit’s Big 3 To Make Face Masks, Respirators, & Ventilators

The industry may be experiencing hard times, but that doesn’t mean automakers will sit back and do nothing. If they can’t make cars, trucks, and SUVs anymore, why not pitch in and help produce life-saving medical equipment?

As it’s been widely reported, there’s simply not enough protective personal equipment (PPE) and breathing aids (specifically ventilators) to go around at the moment. In response, Ford, Fiat Chrysler, and GM are joining forces with major healthcare suppliers to make face masks, shields, respirators, and ventilators for healthcare workers and patients. 

Here’s how each of the Big Three plans to pitch in.

Fiat Chrysler

FCA has promised to manufacture and donate more than 1 million protective face masks per month to essential workers like police, firefighters, EMTs, hospital workers and health care providers all over the country.

“There has never been a more important moment to help children and their families with vital needs in our communities than during this time of great uncertainty,” said FCA CEO Mike Manley.

The SHOP reports that not only has the first machinery already been installed (so supply should arrive in the coming weeks), but also that FCA is expanding its relief efforts to include working with charities that provide food services to children. “Starting immediately, FCA will help provide more than 1 million meals to school-age children in the communities around their principal manufacturing plants in Illinois, Indiana, Michigan and Ohio,” writes The SHOP. The program will extend nationwide and then across North America.

Ford

Over at Ford, the automaker is teaming up with 3M and GE Healthcare to produce face shields, supplies, and medical equipment like air-purifying respirators and ventilators, by putting its state-of-the-art production facilities and 3D printers to great use. 

“This is such a critical time for America and the world. It is a time for action and cooperation. By coming together across multiple industries, we can make a real difference for people in need and for those on the front lines of this crisis,” said Bill Ford, Ford’s executive chairman. 

According to CNET, The Blue Oval already shipped its first 1,000 face shields out to local Michigan hospitals. “By the end of this week, Ford says it will have 75,000 shields complete, and 100,000 shields will roll out of two Ford facilities weekly thereafter.”

General Motors

Despite some bad press that GM was “dragging its feet,” the automaker has been in talks with Ventec Life Systems, a small maker of ventilators, for more than a week. The two are cooperating with StopTheSpread.org, the nation’s leading coordinated private sector response to the global health crisis, to boost Ventec’s production capacity for its important respiratory care products in the coming weeks. 

“With GM’s help, Ventec will increase ventilator production,” said Chris Kiple, Ventec Life Systems CEO. “By tapping their expertise, GM is enabling us to get more ventilators to more hospitals much faster. This partnership will help save lives.”

Production will begin in the coming weeks, with the first round of ventilators shipping before the end of April.

It’s more than just Detroit answering the call.

Tesla CEO Elon Musk donated hundreds of ventilators to NYC hospitals and Toyota has stepped up to 3D print face shields for healthcare workers across North America. And, in the U.K., Land Rover took a fleet of its new Defenders meant for press review and instead donated them to the Red Cross as emergency vehicles.

In a scary time for the world, it’s heartening to see so many in the auto industry coming together to do good.  

Auto Industry Businesses Get Creative…and Charitable!

Speaking of the automakers doing good, let’s keep the positive vibes rolling. Other businesses all across the industry are doing their best to pitch in and help out. From large aftermarket companies to education coalitions, it’s truly great to see so many giving back.

Here’s a quick rundown of just some of the companies and organizations doing their best to help! 

• Harbor Freight is donating 44 million pairs of gloves and hundreds of thousands of masks and face shields to front line hospitals.
• The Collision Industry Foundation (CIF) established a $100,000 fund to help individual collision-repair professionals and their immediate families dealing with the effects of the virus. 
• The newly-formed CTE Coalition created a website portal to connect instructors and students in automotive trades, in an effort to “Keep CTE Moving.”
• The Petersen Automotive Museum is offering virtual “Vault” tours and educational classes for kids.
• Magna International is using its car seat sewing skills to make face masks. Additionally, its designers have put out helpful instructional guides for those at home who want to join in.
• Mobile audio systems manufacturer, Maxxsonics is donating masks and gloves across the Midwest.
• NASCAR is turning its tracks into bases for virus testing centers and blood drive locations. Additionally, many drivers like Jimmie Johnson, Denny Hamlin, Kevin Harvick, Brad Keselowski and Joey Logano are putting their respective foundations to good use during this time, raising money for the cause.

As it whole, it seems like the world is coming together (all while staying six feet apart) to do everything possible to deal with the growing global health crisis. Here’s hoping the extended April 30th shelter in place notice will do enough in the meantime. 

Do you know a company helping out? Mention them in the comments below!