Cybersecurity concerns mount, new EV registrations jump, lease equity declines

Hey everyone. What a wild ride dealers have been on the past few days with the CDK Global outages. It’s mind-boggling to see cyberattacks of this magnitude plague the auto industry and my heart goes out to everyone affected. But the truth is dealers are some of the most creative and resilient entrepreneurs in the country. If any group can come out of something like this stronger … it’s them.

Stay in the know with real-time updates on the CDK situation here.

— CDG

1. The auto industry is waking up to cybercrime

A recent spike in cyberattacks targeting automotive businesses has heightened awareness toward the car industry’s ability (or lack thereof) to defend itself from digital threats.

Bottom line: While businesses and consumers are and have been at risk for some time, the increase in awareness also creates opportunities for new solutions to be brought to the table … Read More

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2. New EV registrations post impressive gains in April, non-Tesla brands up 69%

Incentives moved EVs at a faster clip in April, rising 14% year-over-year for a total of 102,317 new registrations.

Why it matters: Despite a recent lull, EV registrations are picking up steam thanks to attractive incentives like bonus cash, subsidized financing, and attractive lease offers making them more price-competitive with traditional gas-powered cars … Read More

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3. Lease equity declining, signaling shift in used car supply/pricing

Lease equity is down dramatically from last year and is likely to continue its decline throughout 2024, according to new data.

What this means: Now that lease equity is declining and negative equity is on the rise, lessees are less likely to keep their vehicle, leading to an increase in used car supply. Used vehicle inventory has been so constrained due to high demand that any influx in lease returns could have a major impact on pricing … Read More

• Honda accused by U.S. agency of illegal union-busting at an Indiana plant.

• CarMax’s net income fell 33% to $152.4 million in its fiscal first quarter which ended May 31.

• China has spent at least $230 billion to build its EV industry, new study finds.

• Volkswagen models with the new generation infotainment system are now also equipped with ChatGPT.

• China's BYD says Mexico EV plant will employ 10,000 workers.

Thanks for reading everyone.

— CDG