Auto suppliers desperate for cash infusion

Auto suppliers desperate for cash infusion


Approximately two months after the coronavirus outbreak caused a nearly nationwide lockdown, 48 states have eased shelter-in-place restrictions — only Massachusettes and Connecticut kept strict lockdown rules in place — in an attempt to reinvigorate their local economies. An NBC News survey of 33 states and Washington, D.C., found the lockdown will cost states hundreds of billions of dollars in revenue in the upcoming fiscal year. States that are projected to see the biggest drop in revenue include New York, California, Alaska, New Jersey, New Mexico and Wyoming, NBC News reported.

This is CNBC’s live blog covering all the latest news on the coronavirus outbreak. All times below are Eastern time. This blog will be updated throughout the day as the news breaks.

  • Global cases: More than 4.65 million
  • Global deaths: At least 312,188
  • U.S. cases: More than 1.46 million
  • U.S. deaths: At least 88,754

The data above was compiled by Johns Hopkins University.

9:25 am: No spike in cases seen in places that are reopening, U.S. health secretary says

State health authorities are not seeing spikes in coronavirus cases in states that are reopening, though they are seeing a rise in cases in some areas that remain closed, U.S. Health Secretary Alex Azar told CNN.

“We are seeing that in places that are opening. We’re not seeing this spike in cases,” Azar said. “We still see spikes in some areas that are in fact close to very localized situations.” 

Azar’s comments stand in the face of statistics gathered by local health officials that show coronavirus cases are indeed rising places that have taken steps to restart their devastated economies, most notably Texas. After new reported cases rose by about 1,000 per day in mid-April, they started to climb in May, reaching a new single-day high of about 1,450 on Thursday, CNBC’s Jacob Pramuk and John. W Schoen reported.

Cases are “definitely increasing but it’s not to the point where it’s overwhelming our health care system,” Dr. Brian Reed, professor and chair of the department of clinical sciences at the University of Houston College of Medicine, told CNBC. —Terri Cullen

9:00 am: Auto supplier industry needs at least $20 billion to avoid widespread damage

A worker uses a hoist to assemble a car seat at the Lear Corp. manufacturing facility in Hammond, Indiana.

Jim Young | Bloomberg | Getty Images

The U.S. auto supplier industry was already under the gun heading into this year amid slowing sales and rising costs associated with keeping up with emerging technologies that come with electric and autonomous vehicles. When the pandemic hit, a difficult situation quickly turned into a dire one, CNBC’s Michael Wayland reports.

As lockdowns kicked in nationwide, many auto suppliers weren’t prepared for such an immediate and drastic downturn in the economy. Now, the Original Equipment Supplier Association says a cash infusion of $20 billion to $25 billion is needed to avoid bankruptcies, and mergers and acquisitions of small and mid-sized auto suppliers. —Terri Cullen

8:45 am: China’s Wuhan nearly doubles the number of tests per day

The Chinese city of Wuhan, the epicenter of the coronavirus outbreak, conducted 222,675 nucleic acid tests on May 16, Reuters reported, citing the local health authority. That is nearly double the number of tests from a day earlier.

The enhanced testing comes after the city last weekend confirmed its first cluster of Covid-19 infections since its release from a virtual lockdown on April 8, according to Reuters. —Terri Cullen

7:35 am: U.S. is reportedly expected to revise its aid program for small businesses

US Secretary of the Treasury Steve Mnuchin speaks in the Brady Briefing Room at the White House on April 2, 2020, in Washington, DC.


The U.S. is expected to revise its funding program to help small businesses ride out the economic damage caused by the coronavirus outbreak, according to a report by The Wall Street Journal.

Among changes being considered to the Paycheck Protection Program (PPP) are loosening the restrictions on how businesses spend loaned funds, along with lengthening the time businesses are given to the money, the Journal reported, citing lawmakers.

Under the PPP, small businesses can apply for government-backed loans at local lenders, and those loans may be forgiven if at least three-quarters of the loan is spent on payrolls. —Terri Cullen

Read CNBC’s coverage from Asia and Europe overnight: Spain’s daily death toll drops below 100 for the first time in two months


Source link