Top U.S. automakers reported slower growth in new vehicle sales for the second quarter after a cyberattack hit CDK’s Dealer Management Software. General Motors experienced a modest 0.6% rise in new vehicle sales compared to a 19% jump last year, attributing some sales shifts to the current quarter due to the CDK cyberattack. Cox Automotive estimated that U.S. new-vehicle sales volume likely grew by 1% to nearly 4.2 million units in the second quarter, a sharp contrast to the 16% surge during the same period in 2023.
“The CDK cyberattack has disrupted sales during the crucial end-of-June period, impacting one of the busiest times for dealerships,” said Jessica Caldwell, head of insights at Edmunds. The outage affected over 15,000 retail locations relying on CDK’s dealer management software.
Despite the setback, automakers remain optimistic about recouping most lost sales in July. Hyundai reported a nearly 2% increase in second-quarter U.S. sales, down from a 14% rise last year. Tesla, the leader in electric vehicles, saw a smaller-than-expected 5% drop in deliveries after price cuts and incentives helped maintain demand.
Automakers have benefited from the pent-up demand for SUVs, pickup trucks, and hybrid vehicles. Discounts and incentives have attracted budget-conscious shoppers, although new vehicle affordability concerns remain. According to Chris Hopson, an analyst at S&P Global Mobility, inventories are not expected to grow as strongly as they did over the past year.
The CDK cyberattack highlights the vulnerabilities in the automotive industry’s reliance on digital infrastructure and underscores the need for robust cybersecurity measures to safeguard against such disruptions in the future.
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