CDK Cyberattack Impact: Experts Predict 100,000 Less Cars Sold in June
Money | June 28, 2024, 9:24 p.m.
The CDK Global cyberattack has significantly impacted auto dealerships, with an expected decrease of over 100,000 vehicle sales in June alone. This disruption is not due to lack of demand but rather dealers' reliance on CDK sales software for transactions. The outage, caused by a ransom event, has left many dealers without access to their systems, affecting their ability to conduct normal operations. As a result, J.D. Power estimates a 7.2% decrease in total new vehicle sales for June, potentially causing a substantial financial hit to dealerships. While some sales may be delayed until July, the full impact remains uncertain until CDK systems are fully restored. Dealerships not using CDK's software are still operating normally, potentially leading to an increase in business. Despite the challenges faced by the industry, consumers can still purchase cars through alternative means, highlighting the resilience of the automotive market amidst this cyberattack disruption.