AutoNation – the country’s largest retail dealership conglomerate, just announced it will lay off 7,000 people Because Corona. Not because of the virus – but because of hysteria over the virus, which is being used to shut down the economy.
From the Financial Post:
AutoNation, Inc. said on Friday sales of new and used vehicles halved in the last two weeks of March due to global coronavirus-led lockdowns, forcing the company to place about 7,000 employees on unpaid leave.
The largest U.S. auto dealership chain said it was implementing cost-cutting measures, including temporary pay cuts for staff, curtailment of advertising expenses and postponing over $50 million of capital expenditures through the second quarter of 2020.
“Markets from which we derive approximately 95% of our total revenue are currently under extensive ‘shelter in place’ or ‘stay at home’ orders … which significantly restrict our business operations,” AutoNation said in a regulatory filing.
The company currently has about $1.1 billion of liquidity, including over $400 million of cash and about $700 million in its revolving credit facility.
AutoNation had about 25,000 employees as of 2019.
Getting sick of this yet?
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