Most auto lenders with major operations in Texas have not yet reported significant layoffs in response to the downturn spurred by the novel coronavirus, according to the Texas Workforce Commission.
Toyota Financial Services, Santander Consumer USA and USAA’s headquarters are located in Texas. San Antonio-based USAA, which boasts a $15.6 billion auto portfolio according to Big Wheels Auto Data, reported 26 layoffs March 4, although it is unclear if the cuts were in their consumer lending division or other areas of the bank. Texas has 1,658 confirmed cases of COVID-19 and 24 deaths, with a majority of those located in the Dallas area, where Toyota and Santander are headquartered, according to John Hopkins University.
The bank did not respond to requests for comment by press time.
Yesterday, GM Financial cut its salaried employees’ pay by 20% in an effort to stave layoffs, according to published reports. The automaker also joined Ford Motor Co. in maxing out its existing lines of credit in order to increase its cash flow earlier this week. CarMax, too, joined the ranks of major automobile companies drawing down on existing lines of credit.
Other Texas-based automotive institutions haven’t been so fortunate. Earlier this week, Asbury Automotive hit the brakes on its planned $1 billion all-cash acquisition of Dallas-based luxury dealership group Park Place Dealerships, which is comprised of 17 franchise dealerships and generated an estimated $2 billion in annual revenue, according to published reports. Asbury will owe Park Place $10 million in damages.