Ryan Payne, President of Payne Capital Management, appeared on “Mornings with Maria” to explain the latest data on the auto industry.
U.S. new vehicle sales are expected to fall this month compared to June 2023 due to an outage at software provider CDK Global that affected dealerships across the country, according to a new report.
New vehicle sales in June 2024 are expected to total between 1.3368 million and 1.2736 million units, down 2.6% to 7.2% from the same month last year, according to a joint forecast released by J.D. Power and GlobalData on Wednesday.
Vehicles for sale are displayed at a Honda dealership in Fremont, California, June 24, 2024. A cyber incident at software provider CDK Global has disrupted operations at thousands of auto dealerships across North America. (David Paul Morris/Bloomberg via Getty Images)
Analysts attributed the expected decline to power outages that forced some dealers to resume manual paperwork and others to temporarily suspend operations.
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“Due to disruptions in dealership software systems, June sales will not reflect actual consumer demand for new vehicles,” said Thomas King, president of data and analytics at J.D. Power. “Instead, a significant number of sales that would have occurred in June will likely occur in July.”
In the United States, new vehicle sales are expected to fall in June with thousands of dealerships closed for more than a week, but sales are expected to recover once businesses fully reopen. (David Paul Morris/Bloomberg via Getty Images)
“However, it is important to note that sales outcomes may vary widely due to uncertainty as to when the system outage will be resolved and what steps dealers may take prior to closing,” King said.
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CDK, which provides software to more than 15,000 retailers across North America, said it was hit by two cyber incidents last week, leaving many of its customers unable to fully operate since the company took its systems offline last Wednesday evening.
A cyberattack on software company CDK Global has left thousands of US car dealerships completely unable to operate for more than a week. (Igor Golovniov/SOPA Images/LightRocket via Getty Images)
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CDK updated dealers on Tuesday, saying it does not expect all of its customers to be fully open by June 30.
FOX Business’ Aislynn Murphy contributed to this report.
