A pair of subsidiaries of Carmel-based KAR Global (NYSE: KAR) has announced plans for layoffs in Plainfield. In a notice to the state, ADESA Indianapolis LLC and Automotive Finance Corp. say nearly 50 employees will be let go due to the impact of the COVID-19 pandemic.
The companies say the layoffs at the ADESA/AFC facility will take place August 1 and are expected to be permanent.
“We did not foresee how significantly and for how long a time the epidemic and related governmental lockdown orders would impact our business,” the companies said. “Nor did we foresee that these events would gravely impact our business not merely for a short period, but now for the foreseeable future.”
The affected employees have been notified of the decision. The companies did not say whether any assistance would be provided.
ADESA is a wholesale vehicle auction company that provides services to vehicle manufacturers, rental companies and financial institutions, among others. AFC provides inventory financing services for independent car dealers that buy and sell vehicles at auto auctions and dealerships.