They are expected to extend up to 16 weeks. Some hourly employees will experience a reduction in work hours and resulting pay. Click here to submit a Letter to the Editor, and we may publish it in print. Cox Automotive has charged an Illinois-based technology and marketing company with anti-trust violations, filing a suit in federal district court. Detroit, Michigan “We know, though, it is impossible to predict the course or duration of this pandemic and whether any of the furloughs will become permanent.”. Auction business has felt the impact, as well — wholesale volume nearly stopped in the early days of the pandemic. "We know, though, it is impossible to predict the course or duration of this pandemic and whether any of the furloughs will become permanent.". Sales have begun to tick upwards in recent weeks, but are climbing out of a deep hole, the company reported. Please select at least one newsletter to subscribe. In addition to the furloughs, other cost-cutting moves include: In addressing employees today, Schwartz added: “I could say a lot of things about this being the best-case scenario, but nothing will change that furloughs and pay cuts are painful and represent real sacrifices for many families. The company will implement tiered reductions in pay for senior executives. Cox Automotive will furlough more than 12,500 employees — about 10,000 in the U.S. — and executives will forgo some or all of their salaries as a result of the financial hit the company has taken from the coronavirus pandemic. ISSN 0005-1551 (print) As an example, Manheim has said wholesale transactions sank by more than 75 percent during the week that ended April 11 compared with the prior year, though the company said business has begun to return. If there were another way, I promise we would have done it.”. 1155 Gratiot Avenue The furloughs begin May 17. The used-vehicle market has slowed during the pandemic, as consumers heed state orders to stay home and limit the spread of the virus. "If there were another way, I promise we would have done it.". Number 8860726. Cox Enterprises already owned or controlled roughly 40 percent of the communications company’s 28.2 million outstanding shares. The laid-off employees represent 38% of the Cox Automotive workforce. To explore job opportunities with Cox Media Group, select Search Jobs. Power reported. Before the merger, Cox Communications and Cox Enterprises ranked 19th and 21st, respectively. About 4,600 others will be furloughed because their jobs can't easily be done at home or have reduced workloads. “By then, I think we will know something about what our needs will be for the next six months,” Schwartz said. “The automotive industry is beginning to show some signs of life but we’re expecting a slow recovery and a long road back for our revenue,” he says in a message to employees this morning. Among the company's remaining hourly workers, a number are having their hours reduced, the company said. Power reported this week that all key measures of auto industry health have declined. It’s getting closer.”. "We don't take lightly the broad impact these actions will have on everyone; the toll from COVID-19 is already so high and this adds more uncertainty," Schwartz wrote to employees. See more newsletter options at autonews.com/newsletters. Cox Automotive’s holdings also include Autotrader, Kelley Blue Book, Dealer.com, Dealertrack, vAuto and VinSolutions. Cox said in the statement that it also has reduced expenses by cutting marketing spending, limiting hiring and postponing or canceling events and sponsorships. The company has about 34,000 employees, about 29,000 of them in the United States. The Automotive News mission is to be the primary source of industry news, data and understanding for the industry's decision-makers interested in North America. At Cox Media Group every team member has a vital role to play in our company’s success story. Cox Automotive's brands include Autotrader, Dealer.com, Kelley Blue Book and Manheim, working with consumers and auto dealers in the United States and overseas. Lines and paragraphs break automatically. “We don’t take lightly the broad impact these actions will have on everyone; the toll from COVID-19 is already so high and this adds more uncertainty. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. “We don’t take lightly the broad impact these actions will have on everyone; the toll from COVID-19 is already so high, and this adds more uncertainty. Some states included car dealers among businesses to be closed to slow the spread of the virus, and only permitted online or remote sales. Schwartz and Cox Enterprises CEO Alex Taylor will voluntarily forgo their full base salaries for the duration of the COVID-19 pandemic. “Buying a car is not like buying a pair of shoes on Zappos, but you know? “The toll from COVID-19 is already so high. “If there were another way, I promise we would have done it,” says Cox Automotive President and CEO Sandy Schwartz. What will Brockman charges do to Reynolds? Choose your news – we will deliver. Employees will not be paid and can file for state unemployment benefits, though Cox said they will continue to receive health care benefits, with the company paying the full cost. This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Cox Automotive's dealership customers also have sold fewer vehicles, and many had to close their physical showrooms and shift to online sales and home deliveries to comply with state restrictions. The company offered half off its retail subscription fees for its dealership clients in April and May and said it will extend a 25 percent discount on subscription listings fees through its Autotrader brand for June. ... Tracker Enterprises, Inc. The Atlanta Journal-Constitution is a division of Cox Enterprises. For more information, see our Privacy Policy. In Atlanta, year over year sales for the month of April were down 35%, J.D. Since the start of the pandemic, consumers have purchased nearly 1.6 million fewer new and used cars compared to previously estimated demand, the company reported, representing $41.3 billion not spent on autos. Kayne B. Robinson is executive director of the General Operations Division and chairman of the Whittington Center. ISSN 2576-1072 (online), Former Fair CEO Scott Painter to launch subscription services provider NextCar, Carvana shrinks net loss, reports first operating profit, Sponsored Content: Increasing Efficiencies with Returnable Asset Tracking. The furloughs are to begin May 17 and will last up to 16 weeks. 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Senior executives at Cox Automotive will also see reductions in pay: 15% cuts for titles of vice president and above and up to 25% for the executive leadership team.

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