Along with scheduling a conference call to offer more details of the current state of business, KAR Global on Thursday morning outlined five adjustments the company has already made stemming from the coronavirus pandemic.
“The coronavirus pandemic continues to impact our company, industry and markets around the globe,” KAR Global chairman and chief executive officer Jim Hallett said in a news release. “Wholesale dealer demand has decreased significantly over the past several weeks, and both the timeline and pace of market recovery remain unpredictable.
“We look forward to sharing the proactive steps we are taking to continue serving our customers, successfully navigate the uncertainty ahead and position our company to quickly resume full operations as restrictions permit and demand returns,” Hallett continued, in reference to the call scheduled for 11 a.m. ET on Friday.
The company said it is taking a number of proactive steps, including the following to be discussed on the call:
— KAR Global has taken cautionary measures to ensure the continued health, safety and wellbeing of its employees, customers and communities.
— KAR’s executive leadership team will reduce or forgo their salaries during the period our operations are disrupted by the coronavirus pandemic.
— The company’s board of directors will forgo their cash compensation during the second quarter of 2020.
— KAR is reducing operational costs and preparing to scale staff levels to current demand.
— The company is reducing capital expenditures for the remainder of 2020.
“We believe our balance sheet, including our cash position, is strong, and we are well positioned to sustain our business and navigate the uncertainty for the foreseeable future,” Hallett said.