The impact of a cyber attack on CDK’s Dealer Management Software has significantly affected the second-quarter sales growth of the top U.S. automakers. General Motors, for instance, reported a mere 0.6% rise in new vehicle sales, a stark contrast to the 19% jump experienced last year. This slowdown in sales has been attributed to the cyber attack that disrupted the daily operations of dealerships.
As a result of the CDK cyber attack, General Motors mentioned that some sales would shift to the current quarter. This adjustment will likely have implications on the overall sales volume for the second quarter. Market research firm Cox Automotive estimated that U.S. new-vehicle sales volume grew by only 1% to nearly 4.2 million units, marking a considerable decrease from the 16% surge seen in the same period in 2023.
Despite the setback caused by the cyber attack, analysts anticipate that vehicle retailers and automakers will be able to recoup most of the lost sales in July. Manufacturers have been capitalizing on pent-up demand for SUVs, pickup trucks, and hybrid vehicles. Additionally, discounts and incentives on certain models have attracted price-conscious consumers, contributing to a potential rebound in sales in the upcoming months.
While automakers have been able to stimulate demand through various strategies, concerns around new vehicle affordability persist. Analysts, like Chris Hopson from S&P Global Mobility, have noted that inventories may not advance as strongly as they have in the past year. This poses a challenge for automakers striving to maintain sales momentum in a competitive market landscape.
Even amidst the broader challenges faced by the industry, electric-vehicle leader Tesla reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter. The company’s ability to navigate through price cuts and incentives showcases its resilience in stimulating demand during a period of industry-wide disruptions.
Overall, the cyber attack on CDK’s Dealer Management Software has undoubtedly impeded the sales growth of U.S. automakers in the second quarter. While the immediate impact has been evident in the sales figures reported, the industry’s ability to recover and adapt to changing market dynamics will be crucial in mitigating further disruptions going forward.