Dealerships across more states and municipalities face uncertainty over whether they can continue to physically keep open sales and service departments as more governors and local leaders issue stay-at-home orders across the U.S. to try to slow the spread of the coronavirus.
With more directives coming over the weekend, states that have issued stay-at-home or closures of nonessential business orders include California, New York, New Jersey, Ohio, Connecticut, Illinois, Pennsylvania, Delaware, Kentucky, Louisiana, and Michigan with more expected to be announced.
In many cases, the orders have deemed auto service and repair as an essential business and dealerships are able to maintain service operations. But not all executive orders are the same, and uncertainty has led some dealerships to shut entire dealerships in some areas of the country.
In New Jersey, the state’s 500 or so dealerships have had to shut showrooms, though service bays can remain open.
New Jersey Gov. Phil Murphy’s stay-at-home order specifically cites car dealerships as an exception to the closure of nonessential retail businesses, “but only for auto maintenance and repair, and auto mechanics.”
New Jersey’s order went into effect on Saturday and lasts until further notice.
Michigan Gov. Gretchen Whitmer on Monday issued a stay-at-home order effective at 12:01 a.m. Tuesday through April 13, prohibiting people from leaving their homes for work “except to the extent that those workers are necessary to sustain or protect life or to conduct minimum basic operations.”
It was not immediately clear whether auto dealerships’ sales and service functions will be allowed to operate under the order. Whitmer’s order defines “critical infrastructure workers” as those outlined by the U.S. Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency last week. That list includes automotive repair and maintenance facilities, but not sales.
“In-person activities that are not necessary to sustain or protect life must be suspended until normal operations resume,” according to Whitmer’s order. It notes that necessary workers include people “whose in-person presence is strictly necessary to allow the business or operation to maintain the value of inventory and equipment, care for animals, ensure security, process transactions (including payroll and employee benefits), or facilitate the ability of other workers to work remotely.”
A message seeking comment was left with Terry Burns, executive vice president of the Michigan Automobile Dealers Association.
On Sunday, Ohio Gov. Mike DeWine issued a stay-at-home order for all Ohioians. It goes into effect at 11:59 p.m. Monday and runs through April 6. Ohio’s order lists “automobile supplies [including dealers, parts, supplies, repair and maintenance] among essential businesses that can remain open.”
The Ohio Automobile Dealers Association said on its website that it “believes that this order permits dealers to be open for sales and service functions. However, if dealers have any questions regarding the scope of what services they may continue to offer, please contact your legal counsel for additional guidance.”
Ohio is home to about 825 new-vehicle franchised dealers.
Other states
In Kentucky, Gov. Andy Beshear on Sunday signed an executive order closing “all in-person retail businesses that are not life-sustaining,” including grocery stores, pharmacies and banks, as of 8 p.m. Monday. The order is in place indefinitely for as long as Kentucky’s state of emergency order lasts, or until it’s otherwise rescinded.
Automobile dealers are not considered life-sustaining businesses and “showrooms must close,” according to Beshear’s order, although it adds that “dealers may provide repair, parts and service.” Other auto repair, parts, accessories and tire businesses also can continue to operate under the order.
A message seeking comment was left with Gay Williams, president of the Kentucky Automobile Dealers Association.
In neighboring Tennessee, Gov. Bill Lee on Sunday issued an executive order limiting social gatherings of 10 or more people. Gyms and fitness centers must close, as well as restaurants’ and bars’ dine-in seating. Carry-out and delivery remain available under the order.
Lee’s order does not require Tennessee residents to “shelter-in-place,” and keeps open workplaces and businesses “necessary to maintain health and economic well-being” as long as people follow established health and safety precautions. The order took effect Monday and lasts until April 6.
In Nashville and Davidson County, a shelter-at-home public health order issued Sunday requires nonessential businesses to close beginning Monday for 14 days.
Under the local order, “vehicle fuel, support and service stations, vehicle parts and repair businesses, and vehicle sales, leasing and rental businesses” are exempt.
Roberts Weaver, Jr., president of the Tennessee Automotive Association, which represents roughly 350 franchised dealerships in the state, said he had made the case to government leaders that dealerships should be considered essential businesses.
Weaver told Automotive News on Monday that he had not heard whether any dealerships in the state had chosen on their own whether to close or restrict service or hours. The state association is encouraging dealerships to follow Centers for Disease Control and Prevention health and safety precautions, including minimizing human contact and cleaning surfaces.
“My phones have not been silent,” he said.
In Massachusetts, Gov. Charlie Baker on Monday followed several other states in issuing an order closing all non-essential businesses’ physical locations as of noon Tuesday until April 7.
It was not immediately clear whether dealerships could continue to operate sales and service functions. Baker’s administration released a list of businesses considered essential and allowed to continue physical operations, including automotive repair and maintenance facilities, along with retailers that sell auto supplies and repair services.
Baker’s order allows businesses to request an essential designation if they believe they qualify.
A message seeking comment was left with Bob O’Koniewski, executive vice president of the Massachusetts State Automobile Dealers Association.
Connecticut’s “Stay Home, Stay Safe” order by Gov. Ned Lamont takes effect at 8 p.m. on Monday and requires nonessential businesses to close. It lists “auto supply, repair, towing, and service, including roadside assistance,” among essential services that can remain open.
The Connecticut Automotive Retailers Association, which represents about 270 new-vehicle dealerships, said in a website post on Friday that the governor’s order makes clear that dealership service and repair departments are essential businesses. “But CARA awaits the official executive order for the details on your sales department,” the association said.
Officials from the Connecticut association could not immediately be reached for comment on Monday.
In Louisiana, Gov. John Bel Edwards on Sunday issued a stay-at-home order that takes effect at 5 p.m. Monday and runs through April 12. The state has reported 20 deaths tied to coronavirus.
Louisiana’s order includes a number of exempt businesses including transportation workers. It was not immediately clear if dealerships were included in that segment, though the state linked to the U.S. Cybersecurity & Infrastructure Security Agency’s essential worker functions, which includes automotive repair and maintenance facilities as essential businesses.
The Louisiana Automobile Dealers Association, which represents 340 dealerships, last week sent a letter to Edwards asking that if he had to close businesses that he “recognize automobile dealerships, auto-supply or repair establishments, and retailed facilities and services as essential businesses.”
On Monday, the association told Automotive News it was seeking more clarity from the state administration but was recommending its dealers keep showrooms open for now.
“We think Governor Edwards’ order clearly establishes automotive repair and maintenance facilities as essential businesses,” Will Green, president of the Louisiana dealers association, wrote in in an email to Automotive News. “While not as clear, we think, until further notice, vehicle sales can remain open with reduced operations to continue with minimum contact with members of the public, while requiring proper social distancing.
“We are telling our members, adhere to the 10-person limitation on gathering in a single space and to continue to follow the CDC guidelines on cleanliness.”
Delaware Gov. John Carney on Sunday issued an order to close nonessential businesses and keep Delaware residents at home beginning at 8 a.m. Tuesday and lasting through May 15 “or until the public threat is eliminated.”
The Delaware order, in a link of essential and nonessential businesses, says automobile dealers are not essential, while it lists automotive parts, accessories and tire stores, and automotive repair and service as essential, meaning service can remain open.
Executives with the Delaware Automobile and Truck Dealers’ Association was not immediately available for comment.
Other states will be issuing orders soon that are likely to impact auto dealerships.
Wisconsin Gov. Tony Evers took to Twitter on Monday and said he would be issuing a #SaferAtHome order on Tuesday for the state.
“People across our state are still out and about unnecessarily that are putting our friends, our neighbors, and our communities at risk,” he wrote. “Please #StayHome and help us save lives.”
Evers said workers providing essential care and services would be allowed. He said more details would be forthcoming.
CarMax closures
Also Sunday, used-car retail giant CarMax Inc. said it had increased its store closures to 44 — 27 locations in California, two in Florida, one in Georgia, four in Nevada, two in New Jersey, three in New York and five in Pennsylvania.
Some stores, such as the ones in California and New Jersey, are closed “until further notice,” while other have projected dates for reopening, the company said in a release. Stores in Florida and Pennsylvania are to be closed through March 27, while stores in Nevada are to be shuttered through April 17, and locations in New York are to be closed through April 19. The lone closure in Athens, Ga., is through April 7.
At locations that remain open, CarMax said it continues to take precautions amid the new coronavirus pandemic, such as a going “handshake-free” with customers, telling associates to stay home if they feel sick and performing more aggressive cleaning of high-traffic areas in stores.
David Muller contributed to this report.
