Marc Spizzirri was published in the current issue of Automotive News for his opinion piece titled "Joint effort needed to face new normal". Marc discusses the impact that COVID-19 has had on dealerships and the lessons he learned from working with those facing financial hardships in 2019. Spizzirri believes that the key to dealers' survival is creating liquidity and/or managing illiquidity. He says that dealers and lenders must work together to return to a new sense of normal.
See below for an except from the piece.
Even with all of that enthusiasm, auto industry sales had leveled off prior to anyone hearing the term COVID-19, peaking in 2016. The most savvy did not see this crisis coming. No one budgeted for the apocalypse.
As a result, many dealers have been caught without adequate working capital to weather the storm. No lenders conducted stress tests to prepare for a cataclysm of this magnitude.
Just as dealers are forced to face
this hurdle head-on and not hide
from the inescapable, this is not a
time for lenders to pull their
boilerplate forbearance agreements
of the shelf, follow their generic
workout checklist or play hardball. It
is not a solution for dealers to go out
of trust and hope good times are on
To read the full piece, please click here.