US auto sales projected to slump in June due to disruption from CDK outage
Payne Capital Management President Ryan Payne breaks down the latest data on the auto industry during an appearance on «Mornings with Maria.»
Sales of new vehicles in the U.S. are expected to be down this month compared to June 2023 due to the outage at software provider CDK Global that has affected dealerships across the country, according to a new report.
A joint forecast released Wednesday by J.D. Power and GlobalData said total new-vehicle sales in June 2024 are expected to land between 1,336,800 and 1,273,600 units, a 2.6% to 7.2% decrease from the same month a year ago.
Vehicles for sale are shown at a Honda dealership in Fremont, California, on June 24, 2024. Cyberincidents at software provider CDK Global have disrupted business at thousands of car dealerships in North America. (David Paul Morris/Bloomberg via Getty Images)
The analysts pointed to the outages, which have caused some dealerships to return to conducting business using manual paperwork and others to even temporarily shut down operations, were a driving factor behind the projected decline.
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«Because of the disruption to dealer software systems, June sales will not be reflective of actual consumer demand for new vehicles,» said Thomas King, president of the data and analytics division at J.D. Power. «Instead, a significant number of sales that would have occurred in June are now likely to occur in July.»
New-vehicle sales in the U.S. are expected to be down for June due to thousands of dealerships being offline for more than a week, but sales are expected to pick back up once operations fully resume. (David Paul Morris/Bloomberg via Getty Images)
«However,» King said, «it
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