AutoNation Inc. said on Friday its new- and used-vehicle unit sales fell about 50 percent year-over-year during the last two weeks of March due to the coronavirus pandemic.
“Markets from which we derive approximately 95 percent of our total revenue are currently under extensive ‘shelter in place’ or ‘stay at home’ orders from federal, state, and local governments, which significantly restrict our business operations, in particular our sales activities,” AutoNation said in a regulatory filing.
The largest U.S. auto dealership group said it placed about 7,000 employees on unpaid leave, implemented temporary pay cuts for associates and has frozen new hiring.
The retailer also said it has:
- Reduced advertising expenses by about 50 percent for the second quarter of 2020.
- Significantly reduced discretionary spending.
- Postponed more than $50 million of capital expenditures through the second quarter.
- Implemented executive compensation adjustments that include 50 percent salary…
