Toronto, Ontario — In this week’s Tuesday Ticker, we talk auto sales upticks, Detroit automakers play the waiting game and a program for Canadian business leaders that want to help youth succeed.
Sales Rise:
While the world’s largest auto repair businesses may have seen average stock value drops of more than 30 percent in the first few months of the year, auto investors have some cause to be optimistic. Auto sales are picking up.
JD Power has found that May auto sales in the United States will be down by somewhere between 16 percent and 26 percent over May 2019. While a significant drop, the numbers are considerably less grave than the ones for auto sales in April of 2020–which were down to less than half of the totals for May 2019.
South of the Border
On Monday, the production lines at Detroit’s auto plants opened for the first time since March. How long they can remain open without new auto parts deliveries from Mexico remains unclear.
Mexico’s decision to halt the reopening of automotive manufacturing businesses until June has thrown a spanner into the United States auto manufacturing sector. U.S. auto production facilities are heavily reliant on parts manufactured in Mexico’s auto manufacturing facilities. According to a report from the Center for Automotive Research, close to 40 percent of the parts used in American auto manufacturing are imported from Mexico.
American auto repair facilities restarting production across the United States last week. In Canada, operations at Ontario facilities have been returning to normal since the middle of the month.
It is unknown whether the delayed opening of parts-producing Mexican facilities may disrupt operations in the United States or Canada.
Extra Credit Classes
The coronavirus may have ended the 2019/2020 school year early, but Canada’s Government is planning to shell out for some private tutors for the country’s small and medium-sized business leaders.
The Federal Government is providing small and medium-sized businesses and not-for-profits with access to a network of qualified business advisors. The Business Resilience Service, which is run through the Canadian Chamber of Commerce, will provide qualifying businesses with guidance on program options and eligibility, and direct businesses to the most appropriate support organizations. Advisors will also help organizations make decisions to support recovery plans. Information gathered in these advisory meetings will be delivered to policymakers.
“CPAs speak the language of business. They understand the financial pressures on small to medium-sized businesses, not-for-profits and charities and are uniquely qualified to help them navigate federal and regional support programs and help their organizations survive the economic impacts of COVID-19,” said Canadian Chamber of Commerce president Perrin Beatty. “Canada’s accounting and advisory firms are mirroring Canadians everywhere by offering to help their neighbours. It’s what makes Canada great, and it’s how we’ll get through this together,”
The BRS program, coordinated by EY, will be provided for four weeks from Monday, May 25, and will involve support from approximately 125 business advisors from across the accounting profession. Organizations can access the BRS seven days a week by calling 1-866-989-1080.
