Ford Sales Growth Slows Amid CDK Cyberattack Impact

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Ford reported a modest 1% sales increase in the second quarter, joining General Motors in experiencing slower growth as the U.S. auto industry grapples with the fallout from a cyberattack on CDK’s dealer management system. This system outage, affecting over 15,000 retail locations in late June, disrupted a critical selling period for automakers.

The cyberattack at CDK is the latest challenge for the industry, which is already contending with high borrowing costs and economic uncertainty, dampening expectations of a post-pandemic surge in vehicle demand as more people return to offices.

Ford’s sales for the quarter reached 536,050 vehicles, a stark contrast to the 10% jump seen in 2023. Similarly, Toyota and Honda also reported slower sales growth for the second quarter. Despite this, analysts predict automakers will recover lost sales, with GM indicating some sales may shift to the current quarter due to the hack.

CDK announced it is ahead of schedule in restoring its dealer management system, with most dealer connections already back online.

Ford noted that hybrid and electric models significantly contributed to growth in the quarter. Sales of gas-powered models declined by 5%, while sales of electric and hybrid vehicles surged by 61% and 55%, respectively.

Overall, U.S. new vehicle sales in June totaled approximately 1.32 million units, with a seasonally adjusted annual rate of 15.29 million units, according to Wards Intelligence.