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By Nathan Gomez
(Reuters) – Major U.S. automakers reported slower growth in new vehicle sales in the second quarter after a software widely used by dealers in their daily operations was hit by a cyber attack in the last few days of June.
General Motors Co. reported a 0.6% rise in new vehicle sales, compared with a 19% increase last year, and said some sales would carry over to the current quarter because of an attack on CDK’s dealer management software.
Market research firm Cox Automotive estimates that new-vehicle sales in the U.S. in the second quarter are likely to grow 1% to nearly 4.2 million units. New-vehicle sales were up about 16% year-over-year in the same period in 2023.
“The CDK cyberattack weighed heavily on sales during the second half of June, impacting what is arguably one of the busiest and most profitable times of the month and quarter for dealers,” said Jessica Caldwell, head of insights at Edmunds.
The CDK outage was the latest issue facing automakers in the United States, where more than 15,000 retail locations relied on the retail technology provider for their dealer management software.
Hyundai said its U.S. sales in the second quarter rose about 2 percent, compared with a 14 percent jump last year.
However, analysts expect retailers and automakers to recover most of their lost sales in July.
Automakers have benefited from increased demand for SUVs, pickup trucks and hybrid vehicles, and discounts and incentives on some models have attracted price-conscious shoppers.
“Concerns about the affordability of new vehicles remain prevalent, and inventories are not expected to advance as strongly as they have over the past 12 months,” said Chris Hopson, an analyst at S&P Global Mobility.
Electric vehicle pioneer Tesla Inc. (NASDAQ:TSLA) reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter, after price cuts and incentives helped spur demand.
