California Gov. Gavin Newsom has implemented new restrictions to limit the spread of COVID-19 cases in his state.
With coronavirus cases hitting new highs around the country, dealerships in other states could face similar restrictions. During the first wave of COVID-19 that beset the U.S. this spring, dealerships in many states had to reduce operations or close for at least a few weeks.
But in some cases, auto retailers were protected as an essential service — particularly for parts and service functions.
In California, Newsom on Monday moved 28 counties back into the most restrictive tier, with 41 counties now in the purple tier.
The California New Car Dealers Association said in a statement to its members that a majority of California dealerships operate in purple tier counties.
Newsom said in the announcement: “The spread of COVID-19, if left unchecked, could quickly overwhelm our health care system and lead to catastrophic outcomes. That is why we are pulling an emergency brake in the blueprint for a safer economy.”
The California New Car Dealers Association informed its members on Tuesday that dealerships in purple tier counties are limited to 25 percent indoor capacity; dealerships in less restrictive tiers are subject to a 50 percent limit.
The dealers association statement said, “Unfortunately, dealerships should also expect state and local governments to issue new operational requirements in the coming days and weeks.
“For example, state and local officials have openly discussed the potential imposition of curfews, which may have operational impacts on your business.”
The status of restrictions in California counties can be checked here.