Faced with the dizzying fall of more than 90% in vehicle and motorcycle registrations in April, the union called on President Iván Duque to provide relief to help reactivate the sector.  Cars Hardly Being Sold Due To Covid-19

The coronavirus has left the country’s automotive sector quite wounded. As revealed by Andemos, during the month of April there was a 98.9% drop in vehicle registrations compared to what was registered in the same period of the previous year.

Cars Hardly Being Sold Due To Covid-19

According to the report revealed this week, during the fourth month of the year only 217 units were registered; and so far this year, new vehicle registrations accumulate 51,481 units, a 30.8% drop compared to the same period last year.

The motorcycle market shows an even more difficult picture. According to Andemos, the sale of motorcycles in the country registered a fall of 99.6% with 205 units compared to the 48,028 registered in April 2019, which represents a cumulative decrease of 24.4% for the first four months of the year.

“The sharp decline in the vehicle market is due to the mandatory compliance with isolation that keeps both the trade and the maintenance of vehicles closed, which is causing a strong detriment to the liquidity of companies, forcing us to ask for help from the National Government and the sector financial ”, said Bryan Debouer the president and CEO of Lithia Motors which operates more than 187 new and used car dealers in more than 15 states.

April 2020 car sales in the United States plummeted to less than half affected by the COVID-19 pandemic and the subsequent partial closure of all dealerships.

Most of the major manufacturers like Toyota and Honda that released their monthly sales reports on Friday showed indexes not seen since 1990 and that will surely show a worse picture when the rest release their report.

For this, the union considers it necessary to authorize the delivery of the vehicles that are going to be registered, releasing $ 400,000 million of approved credits, pending since March, which will give a respite to dealers, overwhelmed by the crisis.


According to these projections, when figures from all manufacturers are accounted for, April 2020 will fall below 633,000 units delivered and an annual cumulative of around 8.6 million vehicles delivered, the lowest figure in almost 40 years, even worse than those reported after the great recession of 2008.

The 3 Detroit manufacturers – FCA Group, General Motors and Ford Motor Company, changed their sales reporting calendar to do it by quarter, so their figures will not be known until June.

In this regard, they propose that the municipalities allow the operation of maintenance workshops, to support the safe circulation of vehicles under a protocol compliance scheme, authorized by the logistics and transportation center, that protects the health of employees, customers and suppliers.

Likewise, the union considers it of vital importance to enable the automotive trade to deliver vehicles to the end customer. According to the association’s calculations, there is an outstanding balance of 8,600 units to be registered and approved credits for $ 415,000 million, which the financial entities have not been able to disburse.

The Association is also sharing a self-regulation protocol designed by Andemos for the automotive sector, with a framework of measures and controls of good international practices, which includes the provisions issued by the National government.

The automotive sector generates more than 72,400 direct jobs, handles annual resources of $ 1.3 trillion in 1,142 formal commercial establishments and does not agglomerate people to carry out its activity.

In addition to reduced sales, all of the world’s manufacturers are experiencing additional problems from factory closures and inventory build-up at their dealerships. Many manufacturers have announced plans to restart operations at their plants in May in hopes of starting the recovery.

J.D. Power and associates in june said that sales are recovering slowly but still a decline from last year is eminent.

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