ECON Carvana to lay off 1,500; future "uncertain"

mzkitty

I give up.
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Carvana Is Cutting Jobs Again, Laying Off 1,500 Employees as Sales Lag​


Nov. 18, 2022 3:01 pm ET

Online used car retailer Carvana CVNA –6.97% has announced its second round of layoffs in just over six months, after its stock price has plummeted amid investor doubts of a swift sales rebound.

The company is laying off about 1,500 employees, or about 8% of its staff, Chief Executive Ernie Garcia told workers in an email Friday that was reviewed by Barron’s. The cuts will affect the many of the company’s corporate and technology teams, along with some operations teams, Garcia said.

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AlfaMan

Has No Life - Lives on TB
Carvana bought ADESA auto auctions earlier this year for 2 billion. The whole thing looked like a house of cards that was ready to fall.
The ADESA auctions Carvana bought are merely recon shops and storage lots for Carvana and Vroom cars. The auctions are also a captive market for Carvana-any nice vehicle a dealer sends to ADESA to sell makes it easy for Carvana to buy.
Other dealers don't stand a chance.

And yes, Carvana is awash in unsold inventory. probably to the tune of 3000 cars or more sitting at the ADESA DC auction site. With the prices on used cars becoming soft; their demise is more than a possibility.
 

undead

Veteran Member
folks, the layoffs started 6 months ago, and they ain't stopping now, as much as the fact they started was hidden
 

AlfaMan

Has No Life - Lives on TB
folks, the layoffs started 6 months ago, and they ain't stopping now, as much as the fact they started was hidden

And I'd also suspect they're looking for a buyer for the whole shebang. They're hurting and chapter 11 isn't far off. Not necessarily for the retail part of CArvana (but some large dealer group like Penske, Lithia Motors, Carmax or AutoNation might want it) but for the auction part of it. I can see Cox (who owns the Manheim auctions) buying up the auction part. OR a dark horse with a good group of venture capitalists as backup.
 

AlfaMan

Has No Life - Lives on TB
Stupid way to buy a vehicle anyway imo.....sight unseen. Especially if your buying a used vehicle. If I can't check it out first then I don't want it.
It is a completely stupid way to buy a vehicle. Carvana's inventory consists of a LOT of ex rental cars and cars they bought from people wanting to sell their cars. Garbage is a nice way to describe a good portion of their inventory.

It's a stupid way to buy for most folks. If I'm buying a car, or a friend asks me to look at a potential purchase; i tear through it before I even test drive it. FULL inspect, if it's new for a friend or a used car-full inspect........ and I never EVER charge. Can't do inspects on the side for profit, so these are always done free of charge. I'm a professional with a sterling reputation and fully intend to keep it that way.

It's a hoot telling a salesman I want to look at the car first; then pull out all my gear and proceed to give the car a full inspection. When I take a pic of the entire undercarriage, review it for frame clamp marks, rust and the like and audio recording of the engine running (to run it through the company engine sounds database-like a naval library of sonar sounds- it can pick up a engine issue in about 30 seconds, and flags it too-) their chins drop. They get nervous and shuffle their feet like they need do go pee :) The paint gauge and hail light make them really squirm. Hehehehee.....

Salesman is thinking, "Oh sh*t he's a manufacturer's inspector, I can't hide anything from him!" When I ask for mfr. specific files and info they really start sweating. That's usually when the general manager is called out to introduce himself and snivel and grovel, offer me coffee, think to themselves "please don't audit my dealership or be helpful to the other customers! " at me. Hilarious, totally hilarious.

But the younger generations are more apt to buy a car sight unseen off the internet. Millenials consider buying a car on line perfectly normal. People who are totally clueless about vehicles will buy online as well. Carvana knows this and takes full advantage of it. Not to mention most of their pricing is set by people who must be on drugs.......When a dealer (or individual for that matter) quotes KBB (Kelley Blue Book) pricing; that right there tells you they don't know ANYTHING about pricing a car. Basically hang a sign around their necks saying, "I'm a complete idiot regarding car buying". Because that's what they are. KBB pricing is completely unrealistic. Seeing KBB pricing on a car always give me a giggle. Per PT Barnum there's a sucker born every minute.....and every minute some poor unsuspecting customer buys one of these cars. It's easy, the financing is easy but you're buying a pig in a poke with these folks.
 
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