Cyberattack Slowed U.S. Auto Sales in Crucial Second Quarter

According to an article in Business Insurance, a cyberattack slowed U.S. auto sales in the second quarter. The attack occurred with CDK, a software systems provider, disrupting dealership operations in late June. 

General Motors saw a 0.6% increase in new-vehicle sales, a stark contrast to last year’s 19% rise, and anticipated some sales would shift to the current quarter because of the hack. Toyota’s sales grew by about 9%, much lower than last year’s 20% surge. Overall, Cox Automotive estimated a 1% increase in U.S. new-vehicle sales to nearly 4.2 million units, compared to a 16% rise in 2023.

CDK reported that it was ahead of schedule in restoring dealer connections. The cyberattack slowed U.S. auto sales during a critical period, according to Jessica Caldwell of Edmunds. The outage impacted over 15,000 retail locations relying on CDK’s systems. Analysts believe most lost sales will be recovered in July. Hyundai and Honda reported approximately 2% sales increases, significantly lower than last year’s double-digit growth.

In June, U.S. new-vehicle sales were around 1.32 million units, with a seasonally adjusted annual rate of 15.29 million units, as per Wards Intelligence. Concerns about new vehicle affordability persist, and inventory growth is expected to slow, according to Chris Hopson of S&P Global Mobility. Despite a challenging market, Tesla reported only a 5% drop in deliveries for the quarter, aided by price cuts and incentives.