Dealers kicked off 2020 on a tear, with many reporting that their businesses had set records in January and February. But in March, that booming optimism turned to fear as the coronavirus pandemic threatened the survival of many dealerships.
Here’s how the great-to-grim news unfolded for some of the country’s largest public and private auto retailers and auto retail vendors.
March 3: An employee at Toyota of Kirkland in Washington state tests positive for COVID-19, the first known case at a U.S. dealership. The store later temporarily closes for cleaning.
March 16: State and local governments begin to issue stay-at-home orders or mandates to limit nonessential business, including in California and New York. Manheim and ADESA say they'll switch to all-digital auctions as of March 18.
March 17: CarMax closes 5 stores in California. The National Automobile Dealers Association and the Alliance for Automotive Innovation ask President Donald Trump to issue guidance that dealerships be considered essential businesses.
March 20: ADESA halts all auctions for at least 2 weeks.
March 23: The drop in dealership business grows as March forecasts look grim. CDK Global CEO Brian Krzanich reduces his pay to $1 as CDK cuts fees.
March 24: The California New Car Dealers Association recommends dealerships close showrooms to comply with a statewide stay-at-home order. More vendors reduce fees for dealerships.
March 25: Group 1 Automotive says it will furlough 3,000 employees and make other cost cuts. Asbury Automotive Group terminates its $1 billion acquisition of Park Place Dealerships.
March 27: Trump signs a $2 trillion stimulus package into law, including loans to small businesses such as dealerships.
March 29: Robert Garff, chairman of Ken Garff Automotive, dies of complications from COVID-19.
March 30: Dealerships increasingly shift toward digital sales. Penske Automotive Group says it has furloughed employees and made other cost-cutting moves.
April 3: AutoNation Inc. says it has furloughed 7,000 employees and made other cost-cutting moves. Asbury furloughs 2,300 employees and cuts executive pay.
April 8: CarMax says it will furlough 15,500 employees and make other cost cuts.
April 13: Lithia Motors announces job cuts for 5,100.
April 15: U.S. Rep. Mike Kelly, a car dealer in Butler, Pa., is recovering from COVID-19.
April 16: Vendor CarGurus plans to lay off 13% of its global work force.
April 17: The U.S. Department of Homeland Security's Cybersecurity and Infrastructure Security Agency classifies auto sales as an essential service.
April 24: AutoNation and Penske confirm they have returned federal Paycheck Protection Program loans.
April 29: Sonic Automotive Inc. discloses it reduced its head count by a third through furloughs and terminations.
May 4: Dealerships adopt new safety protocols as some locales prepare for economies to reopen.
May 7: Cox Automotive says it will furlough more than 12,500 employees, most at its Manheim unit.
May 8: Los Angeles County allows dealership showrooms to reopen with specific health and safety protocols.
May 13: Penske says it is suspending its stock dividend, a move anticipated to save about $34 million cash in the 2nd quarter.
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