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U.S. auto sales expected to fall in June due to disruptions from CDK outage

New vehicle sales in the United States are expected to be down this month compared to June 2023 due to the outage at software provider CDK Global that affected dealerships across the country, according to a new report.

According to a joint forecast released Wednesday by JD Power and GlobalData, total new vehicle sales in June 2024 are expected to be between 1,336,800 and 1,273,600 units, down 2.6% to 7.2% from last year. same month last year.

Analysts pointed to the outages, which caused some dealerships to resume operations using manual paperwork and others to even temporarily halt operations, as a driving factor in the expected decline.

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“Due to the disruption to dealer software systems, June sales will not reflect actual consumer demand for new vehicles,” said Thomas King, president of data and analytics at JD Power. “Instead, a significant number of sales that would have occurred in June are now likely to occur in July.”

“However,” King said, “it should be noted that a significant range of sales outcomes is possible due to uncertainty about when exactly system failures will be resolved and what countermeasures are put in place by dealers to make sales until closing.”

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CDK, which supplies software to more than 15,000 retail locations in North America, reported being hit by two cyber incidents last week. Many of the company’s customers have been unable to operate fully since the company took its systems offline last Wednesday evening.

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In its latest update to dealers on Tuesday, CDK said it does not expect all customers to be fully operational until June 30.

Aislynn Murphy of FOX Business contributed to this report.

News Source : www.foxbusiness.com
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