C.J. Moore

The online used-vehicle retailers are facing a reckoning after riding high on consumer and investor interest during the COVID-19 pandemic.

Carvana Co.'s disclosure that it cut 2,500 employees set off reactions in the stock market and among social media users who said they were employees and that they received little or no heads-up that they would be let go.

Carvana is laying off 12 percent of its work force and executives won't take salaries for the rest of the year.

The deal hands Carvana the keys to 56 ADESA sites across the U.S., totaling about 6.5 million square feet of buildings on more than 4,000 acres.

Online used-vehicle retailer Vroom said that its COO, Tom Shortt, 53, is joining its board and succeeding Paul Hennessy as the company's CEO.

KAR Global CEO Peter Kelly is banking on using the money made on the sale of ADESA U.S. to Carvana to amplify the compnay's online auction offerings.

In addition to paying big premiums at auction, dealers are resorting to searching inventory channels left and right for vehicles that can be made ready for the front line.

Wholesale used-vehicle prices ticked down in April, marking three full months of cooldown after a long stretch of record elevation last year.

KAR expects to finalize the sale of ADESA to Carvana within the next week. KAR CEO Peter Kelly confirmed the time frame in the company's first-quarter earnings release. KAR also reported an $8.4 million net loss in the quarter.

Penske Automotive Group Inc. and Lithia Motors Inc. each announced new single-store acquisition deals.

The shifting reliance on used vehicle sales in 2021 was seen up and down the Automotive News annual list.

With the microchip shortage and other supply chain hiccups making new vehicles hard to come by in 2021, auto retailers boosted their focus on selling used cars and trucks.

Texas attorney general's office said Vroom allegedly misrepresented and didn't tell customers about holdups in transferring vehicle titles and obtaining registrations.