New car sales in the United States are projected to be lower this month than in June 2023 due to the CDK Global outage, which impacted dealerships throughout the nation.

June Car Sales Expected to Dip - Here's Why

In a combined projection by JD Power and GlobalData issued on Wednesday, June 26, sales of new vehicles were projected to fall 2.6% to 7.2% year-over-year in June. The range of predicted sales was 1,336,800 to 1,273,600 units.

According to Fox Business, the experts attributed the predicted revenue drop to the recent software disruptions at CDK Global, which have prompted some dealerships to resume using paper documentation and others to temporarily halt operations.

JD Power's data and analytics division head, Thomas King, issued a statement clarifying that June sales would not represent real customer demand for new cars due to the interruption. Instead, a large number of transactions that were supposed to happen in June are now more likely to happen in July.

Yet, he also noted that the resolution of system failures and dealers' countermeasures to transact sales might lead to a wide variety of sales results.

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CDK Continues to Deal With Cyberattack

CDK, a company that supplies software to over 15,000 retailer dealer sites in North America, reported two cyber incidents last week. Since the business went down on June 19, many of its clients have been partially operational operating.

In a report by Fox Business, CDK said in its most recent report to dealers this week that it does not anticipate having all of its clients completely operating by Sunday, June 30.

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