The ongoing novel coronavirus COVID-19 pandemic has resulted in a wide range of issues for the auto industry, dealers included. Now, with a substantial downturn in global auto sales on the horizon, GM Financial is providing relief for dealers by allowing some floorplan payments to be deferred for 90 days.
According to a recent report from Automotive News, GM Financial will waive curtailments, the principal a dealer owes with regard to floorplan inventory that sits on a lot longer than most vehicles, which can include demonstration cars and loaner vehicles. GM Financial will also guarantee that dealership dividend payments will remain consistent with the previous month.
Dealers are not required to leverage the waiver, but can choose to do so if desired.
The measures are similar to those that go into place in the event of a natural disaster. However, the current pandemic is unique in that not only is worldwide, but it’s also unclear when the crisis may finally be resolved.
The deferred payment plans are part of a widespread response from General Motors in the wake of the novel coronavirus COVID-19 pandemic. The automaker has also stated that it will offer free OnStar crisis assist services to current owners, as well as unspecified financial relief for those owners who purchased their vehicle through GM Financial.
Meanwhile, GM is also curtailing North American production, with plants in Canada, Mexico, and the U.S. drawing down operations in a set cadence. GM says that it will reevaluate production status week-to-week starting in April.
Further measures are expected as the pandemic continues to evolve and new cases are reported. It’s also been reported that GM will temporarily produce medical ventilators in response to the rising number of COVID-19 cases in the U.S.