Cox Automotive needs to watch its costs, the company told its employees in an internal memo obtained by Automotive News.
In the memo, Cox said slowing revenue growth has forced it to consider a number of measures to “address the worsening gap between revenues and expenses” as the company approaches the halfway point of the year.
Cox, which has been on an ambitious acquisition streak in recent years, says staffers should expect to hear from their leaders soon about plans to reduce total labor costs, halt or defer non-priority projects, “significantly reduce” travel and entertainment spending, and eliminate duplicative services and excess bureaucracy, among other things.
“We have to make enduring changes to the way we work and the way we spend,” the memo said.
But there are currently no plans to divest any of its businesses, a company spokesman told Automotive News in an email.
The memo comes at a time when Cox Automotive is looking to revolutionize the digital retailing experience through properties such as MakeMyDeal, which allows consumers to negotiate the terms of a deal online.
Cox is focused on bringing a transactional atmosphere to dealer websites that allows consumers to handle more of the buying process on the web.
Citing such Cox brands as Autotrader, Kelley Blue Book, vAuto, Manheim, Dealer.com and Dealertrack, spokesman Lou Laste wrote, “these and all of the other brands we have acquired will stay in place.”