Ryan Payne, president of Payne Capital Management, analyzes the latest auto industry data during an appearance on “Mornings with Maria.”
Direct losses for auto dealers hit by outages at major software supplier CDK Global in recent weeks could reach as much as $1 billion if the problems are not resolved quickly, according to new data.
Michigan-based Anderson Economic Group (AEG) estimates that the ongoing operational disruptions will cost dealers $944 million if the problems extend into this weekend, which would be the third week of the shutdown.
Vehicles for sale at an AutoNation Honda dealership in Fremont, California, U.S., on Monday, June 24, 2024. The cyber incidents at CDK disrupted operations at thousands of auto dealerships across North America. (David Paul Morris/Bloomberg via Getty Images / Getty Images)
CDK shut down its systems on July 19 after discovering two cyber incidents. According to analysts at AEG, the first two weeks have already cost dealers more than $600 million.
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The outage forced some auto dealers to rely on manual paperwork. The auto industry technology and software provider worked to restore systems used by more than 15,000 outlets in the U.S. and Canada.
![CDK Global logo](https://a57.foxnews.com/static.foxbusiness.com/foxbusiness.com/content/uploads/2024/06/931/523/cdk-global-logo.jpg?ve=1&tl=1)
Cyber incidents at CDK Global two weeks ago disrupted operations at thousands of U.S. auto dealers. (Igor Golovniov/SOPA Images/LightRocket via Getty Images / Getty Images)
CDK told Reuters on Monday that it plans to have its dealership management systems (DMS) up and running for all customers by the early morning of July 4. The company also said its customer service channels had been restored and that it was “actively working” to bring other applications live.
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The company said last week that as part of its phased approach, it has brought two small groups and one large listed group of car dealers live on DMS.
![On July 11, 2023, used cars are offered for sale at a dealership in Chicago, Illinois.](https://a57.foxnews.com/static.foxbusiness.com/foxbusiness.com/content/uploads/2024/06/931/523/GettyImages-1534549532-1.jpg?ve=1&tl=1)
On July 11, 2023, used cars are offered for sale at a dealership in Chicago, Illinois. (Scott Olson/Getty Images / Getty Images)
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A joint forecast from J.D. Power and GlobalData last week warned that U.S. new-vehicle sales would fall year-on-year in June due to dealer disruptions. However, the forecast said sales should pick up in July if operations fully resume in time.
Reuters contributed to this report.