Carvana's dealer license suspended in Illinois; Skokie will no longer review request to build tower

SKOKIE, Ill. (WLS) -- The village of Skokie will no longer review Carvana's requests to build a car vending tower after the company had its dealer license suspended.

The Illinois Secretary of State said the company failed to properly transfer titles on vehicles it sold. It's also accused of misusing out-of-state temporary registration permits.

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The suspension may be lifted if Carvana resolves the issue.

Last week, the online automotive retailer said it would cut 2,500 jobs, or about 12% of its workforce, as it tries to bring staffing and expenses in line with sales.

A Carvana spokesperson issued a statement saying, "Carvana has compliantly operated as a licensed dealer and good corporate citizen in the State of Illinois for several years, and we strongly disagree with the State's characterization of both the facts and the law leading to this action. We are actively working with the State to resolve this issue, and they have agreed that we will continue delivering already purchased vehicles. We look forward to resolving this issue with minimal disruption to customers."