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Hey everyone,
Moving into the last two months of the year. We took a temp check of dealers on what they are seeing in the market in October in this week’s Market Pulse.
— CDG
First time reading a CDG Newsletter?
Welcome to The Weekly, a roundup of the top five auto industry headlines of the week.
Cox Automotive confirms VinSolutions cyber incident, says activity contained
Cox Automotive this morning (Oct. 26) confirmed it is working with “outside cyber experts” to investigate recent suspicious activity tied to its VinSolutions platform.
“The activity was quickly contained, did not involve any encrypting malware, and there was no disruption to our customers' ability to use VinSolutions,” a Cox spokesperson wrote to CDG News via email.
And so far, they believe “a limited subset” of dealers on the platform were affected, which they plan to notify.
Bottom line: The HookPhish blog noted that “most ransomware intrusions start with a stolen password or a phishing email,” so dealerships and vendors should emphasize this across all staff so everyone understands the risks and how to prevent them.
Mohawk Honda’s Lightning Lane meets customer demand with 25-minute oil change offer
The best ideas often don’t come from within the four walls of a dealership, as Greg Johnson recently recounted.
During his son’s lacrosse practice, his friend’s wife told him about her trip to a quick lube that day, where she said she happily paid $139 to get the service done in just nine minutes.
Driving the news: In a return visit to Daily Dealer Live, the Mohawk Honda General Manager shared with host Sam D’Arc how that conversation inspired his new Lightning Lane.
Customers are guaranteed to be in or out in 25 minutes, or the oil change is free.
A quick word from our partner
What does the latest dealership performance data reveal about the state of auto retail, and what could it mean for dealership valuations?
In Presidio's Q3 Drive-In LIVE, Jason Stein, Kevin Tynan and Alex Watterson examine dealership profitability trends, including pressure on vehicle margins, rising operating expenses and the continued contribution of fixed operations.
They also provide an update on buy-sell activity and valuations.
Watch the on-demand discussion and access the full Q3 Presidio–NCM Average Dealership Performance Benchmark.
California New Car Dealers Association’s lawsuit against Scout, Volkswagen proceeds following latest judge ruling
The California New Car Dealers Association’s lawsuit against Scout and Volkswagen will continue after a federal judge Thursday (Oct. 22) denied the defendants’ second attempt to dismiss the case.
The CNCDA sued Scout and Volkswagen in April 2025, alleging that Volkswagen was violating the state’s franchise laws and illegally competing against dealer partners through its affiliated brand, Scout Motors.
From the CNCDA: “No one should mistake this ruling for the end of the case. What it does show is that Volkswagen and Scout have now made two unsuccessful attempts to avoid answering these claims on the merits,” said Brian Maas, CNCDA President. “We believe the court's decision underscores the strength of our legal arguments and puts us in a strong position as the case moves into its next phase. Discovery will be important, and we're prepared to keep pressing forward with the support of our franchised dealer members."
Update: Honda restores iN dealer network after cybersecurity incident, investigation ongoing
Honda and Acura’s Interactive Network (iN) was back up and running Thursday morning, according to dealer reports, after a cybersecurity incident forced the automaker to take the system offline Tuesday.
The outage left dealers nationwide across the auto and powersports space without portal access for two days.
“Honda recently identified a cybersecurity incident involving Honda’s Interactive Network (iN),” a Honda spokesperson wrote to CDG News. “As a precaution, Honda took the iN offline to allow for a proper investigation and ensure the protection of our system.”
The issue is: Without access to the portal, dealers couldn’t submit finance applications, access recall alerts or new incentive information, or work on more complicated repair orders. (Not an exhaustive list, either.)
In the statement shared with CDG News, Honda wrote, “At this time, we have not identified evidence that customer information was accessed, and our investigation remains ongoing.”
CPO opportunities emerge as supply rebounds from Q1 lows
After an extended period of limited inventory, the selection of certified pre-owned inventory grew by 4% in the past three months, according to data from Catalyst IQ, bringing new opportunities for dealers to meet the needs of consumers.
Certified pre-owned vehicles took 46 days to move in the third quarter and brought in $40,600.
Bottom line: As shoppers are looking for affordable options with a warranty, CPOs present an opportunity for dealers. The average CPO in Q3 was listed at $40,600, which was $11,300 more than the average used vehicle.
