While the economy continues its unprecedented collapse as a result of the coronavirus and the ensuing lockdowns, there has been nary an industry that has not gone rushing directly to Uncle Sam (and the taxpayer) for a bailout and/or some type of fiscal relief.
The U.S. auto industry, famous for being bailed out in 2008, is no exception.
Trade groups that represent the industry are now pleading with Washington for tax relief and delays in implementing the USMCA trade agreement, according to Bloomberg. They are asking for the concessions in hopes of blunting some of the economic blow from the shutdown of the industry, as a result of the virus.
The Alliance for Automotive Innovation and Motor and Equipment Manufacturers Association has specifically asked lawmakers for a tax deduction or credit for companies that provide paid sick leave for workers related to Covid-19.
They are also asking to delay or defer 2020 quarterly federal tax payments and for a temporary employer payroll tax holiday.
Additionally, automakers are seeking to expand and extend expensing for equipment and machinery while at the same time delaying the June 1 implementation date for the USMCA.
The trade group said in its letter: “We are already seeing a steep drop in retail sales over the last ten days, as well as significant disruptions in production, including temporary closures of numerous manufacturing facilities, while dealers and service centers largely remain open.”
Recall just days ago we reported that the Big 3 automakers were shuttering all domestic manufacturing over concerns about the virus.
All three of Detroit’s “Big 3” automakers announced around midday on Wednesday that they would shutter all domestic production. The decision follows Daimler, BMW and a handful of other carmakers in Europe and Asia shuttering factories to combat the coronavirus outbreak – and to prevent a glut of supply.