Solera Auto Finance has laid off dealership sales representatives and stalled funding loans purchased from dealerships, two former employees told Automotive News, after the company experienced explosive growth last year.
Dealers reported delays in reimbursement from Solera Auto Finance, which launched in 2022 with plans to serve as a "captive-like" auto finance option for dealerships and consumers.
Two recently dismissed Solera Auto Finance area sales managers told Automotive News that they and their colleagues were summoned to a companywide conference call. They requested anonymity, one citing fear of retaliation.
One of the sales managers recalled being "gung-ho" about the call he said occurred Jan. 12. Solera Auto Finance was having issues funding loans sent in by dealerships; he thought the call would reveal a solution.
Instead, the managers were fired effective immediately, according to the second manager. The layoffs affected most of a 39-person sales force, he said. A handful of other former Solera Auto Finance sales managers have announced being dismissed via LinkedIn posts.
"In response to the current challenging economic conditions, Solera Auto Finance made the difficult decision to restructure on Jan. 12," Amy Casas, spokesperson for parent company Solera, wrote in an email Tuesday.
The first manager reported being told by a colleague on the underwriting side of the business about layoffs among Solera Auto Finance's loan "buyers" and "funders." The second manager estimated Solera Auto Finance had around two dozen personnel in each of the two jobs prior to the layoffs. Solera would not confirm the total number of layoffs.
"Solera Auto Finance continues to operate to facilitate current and future business opportunities," Casas wrote in response to the report of buyer and funder layoffs.