Looking at the News

ASOTU isn’t a cybersecurity company. We don’t own any dealerships or create unique tech to help dealers sell cars. Some of us don’t even change our own oil.

But we know people and many of those people are experienced with what it takes for dealerships to thrive in any circumstance.

So, we invited a few to a round table to speak about the CDK Global challenge and how they handle these dire one-off challenges.

Join us today on LinkedIn or YouTube at 9 am PST/ 12 pm EST.

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Update on CDK Global

Some facts: A second cyber incident at CDK Global, affecting 15,000 auto dealers in the US and Canada, continued to disrupt operations on Thursday.

CDK Global, a key software provider for car dealerships, proactively shut down most systems out of caution. Despite efforts to restore functionality, a new cyber incident on June 19 forced another shutdown.

Dealerships face significant challenges, particularly during the peak car-buying season, as essential systems for recording deals and scheduling services remain inaccessible. Some dealerships resort to manual processes to continue sales, but customer data security and operational efficiency are major concerns.​

Reading after 12 pm EST? That’s ok. Catch the replay of our live stream here.

Affordability Increases as Rates Decline

Affordability is a topic so big right now that you could say it is the elephant in the room. However, auto loan rates are a big part of the conversation, so you could say it is the trunk of the elephant in the room. This article covers some of the junk in the aforementioned trunk.

Deets:

The average new-vehicle loan rate fell by 22 basis points in May to 9.98%, the lowest in 11 months.

The average monthly loan payment decreased by 1% to $752 from its peak of $795 in December 2022.

Income Growth:

• Median incomes grew approximately 4% year-over-year.
• This income growth reduced the number of weeks of median income needed to purchase the average vehicle by about half a week, to around 37 weeks, a 6% improvement year over year.

Market Factors:

• Increased incentives, a drop in auto loan rates, and continued income growth​ ​improved affordability in the new-car market.

EU EV Sales Drop in May

Sales of new battery-electric cars in the European Union dropped 12% in May compared to the previous year, led by a significant 30% decline in Germany, according to European Automobile Manufacturers Association (ACEA) data. Germany, the largest EV market in the EU, experienced a year-to-date decrease of 16% following the early termination of subsidies for EV purchases in December. New car sales in the EU fell by 3% in May, with a 2.6% decline in the broader region, including Britain and EFTA.

Despite this trend, Hyundai is pushing forward with its EV strategy, introducing two new electric vehicles in Europe: a low-cost Inster EV and a new IONIQ model. Hyundai’s Europe CEO, Michael Cole, expects EVs to make up over 14% of their total sales this year, aiming for more than 20% next year and maintaining confidence in continued EV growth despite the competitive market.

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Automakers (except Tesla) are reporting more EV sales, but region by region (except China) has fewer EV sales.

So, the solution is obviously to put all the Teslas in China.

If anybody has Elon’s number or… just anybody in China’s email address, I’d love to pitch my idea to them.