KAR Global will temporarily furlough a “significant portion” of its work force and company executives will cut their salaries as the wholesale vehicle-auction company works to counter the financial impact of the COVID-19 virus outbreak, it said Friday.
KAR also will prohibit all business travel through April 17, terminated nonessential third-party services and delayed or canceled all capital projects at physical auction locations, CEO Jim Hallett said Friday on a conference call. Those actions should lower the company’s cash outflows by $10 million per week, he said.
“It goes without saying that we’re facing an unprecedented situation throughout the world,” Hallett said.
Hallett said he, President Peter Kelly and Eric Loughmiller, executive vice president and CFO, will work without pay through at least the second quarter. In addition, the rest of KAR Global’s executive leadership team will receive half of their current salaries through the second quarter, while board members will…
