Earlier this week: CDK Global announced the successful launch of a small initial test group of dealers on its new dealer management system. The CEO of CDK defended the company’s handling of the situation amid already filed lawsuits, compounding the company’s issues. Volkswagen Group plans to invest up to $5 billion in Rivian. Ford has officially chosen Long Beach as its HQ for the development of its next-generation electric vehicles. U.S. auto sales through the first half of the year are up by 2.9% compared to a year ago. The Alliance for Automotive Innovation has petitioned the NHTSA to reconsider parts of a recently finalized rule mandating automatic braking systems in all new vehicles by 2029. Hyundai is encouraging more dealers to join its Amazon retail program in preparation for a consumer launch later this year.
Here’s a closer look at these top stories and more headlines to stay on top of this week’s automotive industry news.
1. CDK Global’s cyberattack recovery and broader industry impact
In a significant step forward, CDK Global has announced the successful launch of a small initial test group of dealers on its new Dealer Management System (DMS). Lisa Finney, CDK spokesperson, shared the exciting development, noting, “We have successfully brought a small initial test group of dealers live on the DMS. Once validation is complete, we will begin phasing in other dealers.” Read More
2. CDK Global CEO assures ‘diligent’ efforts to restore operations after cyberattack fallout
CDK Global faces significant challenges after two cyberattacks on June 19, with the fallout expected to continue beyond June 30. CEO Brian MacDonald has defended CDK’s handling of the situation amid the already filed lawsuits, compounding the company’s problems. Read More
3. Volkswagen to invest $5 billion in Rivian to boost EV production
Volkswagen Group plans to invest up to $5 billion in electric vehicle startup Rivian, beginning with an initial $1 billion investment, followed by an additional $4 billion expected by 2026. This strategic partnership aims to bolster Rivian’s production and technological capabilities, enhancing the EV landscape for both companies. Read More
4. Ford establishes Long Beach Headquarters for affordable EV development
Ford has officially chosen Long Beach as the headquarters for developing its next-generation electric vehicle (EV) platform. This new facility will house Ford’s “Skunkworks” team, which is dedicated to building affordable EVs. Read More
5. Uncertainty looms over U.S. auto sales momentum
U.S. auto sales through the first half of the year are up by 2.9% compared to a year ago. However, concerns loom about whether the industry can sustain this momentum through year-end. Read More
6. Automakers push back against costly automatic braking system rule
The Alliance for Automotive Innovation, representing major automakers, has petitioned the National Highway Traffic Safety Administration (NHTSA) to reconsider parts of a recently finalized rule mandating automatic emergency braking systems in all new vehicles by 2029. While the alliance supports the inclusion of automatic braking technology, it argues that the rules’ specific requirements are nearly impossible to meet and excessively costly. Read More
7. Hyundai Motor America expands Amazon retail program for more dealers
Hyundai Motor America is encouraging more dealers to join its Amazon retail program in preparation for a consumer launch later this year. The automaker’s U.S. CEO, Randy Parker, has communicated with dealers about the progress of this collaboration with Amazon, which will allow customers to buy a Hyundai online. Read More
8. Legal expert Len Bellavia discusses CDK Global cyberattack and ongoing antitrust lawsuit
12 thousand franchised dealers are being represented in an existing nationwide class action lawsuit against CDK Global. Joining us now to tell us more about the lawsuit is the lawyer who spearheaded it, Len Bellavia, Founding Partner of the law firm of Bellavia Blatt also known as DealerLaw.com. Watch the full segment here.
9. Reynolds & Reynolds President Chris Walsh addresses the impact of CDK Cyberattacks on automotive retailers
As we continue our coverage of the ongoing CDK cyberattacks, which began last week, Chris Walsh, the President of Reynolds & Reynolds, shares his perspective on the incident and what it means for the industry. Watch the full segment here.
10. Tom Maoli addresses the impact of CDK Global cyberattacks on dealership operations
In the ever-evolving landscape of automotive retail, the recent cyberattacks targeting CDK Global have sent shockwaves through the industry, leaving thousands of dealerships grappling with operational challenges and financial uncertainties. Among those deeply impacted is Tom Maoli, the seasoned President and CEO of Celebrity Motor Car, whose firsthand experiences shed light on the magnitude of this crisis. Watch the full segment here.
