CDK Outage Disrupts US Auto Sales in June, Forecasting Slump
Money | June 26, 2024, 5:44 p.m.
Sales of new vehicles in the U.S. are predicted to decline this month compared to last June due to a software outage at CDK Global affecting dealerships nationwide. J.D. Power and GlobalData forecast a 2.6% to 7.2% decrease in total new-vehicle sales in June 2024. The outages have forced dealerships to resort to manual paperwork or temporarily halt operations, influencing the drop in sales. J.D. Power's Thomas King explained that June sales will not accurately reflect consumer demand, as many postponed purchases may shift to July. With uncertainty surrounding the resolution of the outages, a wide range of sales outcomes is possible. CDK Global, serving over 15,000 dealer locations in North America, suffered cyberincidents last week, impacting operations. The company anticipates not all customers will be fully operational by the end of June.