CDK attacks ripple through industry, negative equity rears its ugly head, vehicle quality worsens

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1. Domino effect: CDK Global outages could prove costly

The CDK Global cyberattacks have exposed major vulnerabilities in the systems car dealers have come to rely on for daily operations, and the fallout from this event could be enormous for the auto industry. 

Why it matters: If there is one thing that the attacks have shown us, it’s that integrated technology systems can be a house of cards. One mistake from a major provider, and a whole industry could be thrown into chaos … Read more

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2. Repo rate ticks up for consumers with negative equity trade-ins

Auto loans involving a negative equity trade-in are nearly three times more likely to end in repossession than an auto loan involving a positive equity trade-in, according to data from the Consumer Financial Protection Bureau.

Negative equity is slowly becoming more common, making a bigger and bigger impact on consumer finances as it grows more prevalent. Assuming this continues, lenders are likely to continue tightening credit access … Read more

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3. EVs rank far below ICE in latest vehicle quality study

J.D. Power’s latest Initial Quality Study gives us insights into the frustrations of new car owners, and where their complaints originate.

While electric vehicles are supposed to require less maintenance than their gas-powered counterparts due to having a smaller number of moving parts, J.D. Power found that both EVs and hybrids required repairs three times more often than other cars … Read more

• A week into the CDK disruption, negative dealership reviews surpassed 13%.

• Toyota plans to launch its first EV with advanced self driving system for China in 2025.

• Chinese automakers are expected to continue rapidly expanding outside of China to achieve 33% of the global automotive market share by 2030.

• Ford CEO Jim Farley recently posted an opinion piece to social media describing his new-found love of EVs.

• Northwood University camp teaches high schoolers about the auto industry.

Thanks for reading everyone.

— CDG