#720 - 🚗 Ransom or Restore?

TOGETHER WITH

Good morning, Friend!

CDK is getting on track, Nissan joins the automakers who may be better off leaving China, Hyundai’s workers vote to strike in South Korea, and China suggests the EU stop all this tariff talk.

That’s what’s new in the headlines. What’s new with you?

Keep Pushing Back
-Paul, Kyle, Chris & Kristi

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BUSINESS

Today

Proactivity is one of the pillars of any self-help book. While we are not interested in writing you a self-help blog, we do think you're the sort who improves yourself under any circumstances.

So, part of our mission is to bring some energy, information, and community within your reach so you can transform it into empowerment, knowledge, and vibes that show people that dealerships are home to a lot more than co-workers selling cars.

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CDK Global Begins System Restoration

CDK Global is restoring systems after cyberattacks disrupted operations at over 15,000 car dealerships since June 19. The restoration is expected to take several days.

• Ransomware Negotiations

  • CDK is negotiating with the BlackSuit ransomware group, which demanded a multimillion-dollar ransom to stop the attacks.

Nissan's Chinese Market Battle

Nissan reported a 16% drop in Chinese sales last year and an additional 2.8% drop last month. For those keeping score, that's down 18.8% year over year.

BYD is gaining all the sales Nissan is losing as it uses aggressive pricing to dominate its home and global markets. It is hard to beat a sub-$10K EV, and BYD's Seagull EV is almost singularly occurring in that market.

Due to low sales, Nissan is shutting down its Changzhou plant, which accounts for 8% of its production capacity in China. Toyota, Mitsubishi, and Honda have also pulled back in the Chinese market amid slumping sales.

Hyundai Motor Union Strikes

Hyundai Motor's union in South Korea has voted for potential strike action after stalled negotiations over wages and retirement age.

• Strike Details

  • Nearly 90% of the 43,000-member union supported the strike.

  • This would be Hyundai's first strike in six years.

• Union Demands

  • The union seeks a pay increase, performance pay, and an extended retirement age.

• Company Response

  • Hyundai Motor has declined to comment, but negotiations may continue.

China-EU Tensions Over EV Tariffs

Tariffs again? What's going on now?
China is urging the EU to revoke its decision to impose provisional tariffs of up to 38.1% on Chinese EV imports, set to take effect by July 4.

They didn't seem worried before; what's going on now?
The EU's anti-subsidy investigation into Chinese EVs claims China violates WTO rules. Over the past decade, China has invested over $230 billion in its EV industry, representing 18.8% of total electric car sales between 2009 and 2023.

What does it mean?
If China loses EU support, it could dramatically change the global auto landscape, especially regarding EVs.

Of course, nobody expects China to take this one lying down. Countermeasures, like those China implemented in response to the US 100% tariffs on some Chinese products, are sure to follow, essentially shaking up the whole global economy, not just the auto market. 

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TOGETHER WITH MOSAIC

Compliant and Successful

Would you, like the rest of humanity, like to avoid explaining yourself to litigators for the rest of your life?

Since 2006, our friends at Mosaic Compliance Services have been helping dealerships nationwide implement effective compliance programs. Over 150,000 users trust them to keep their operations smooth and secure.

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• Affordable: Ever see compliance companies promise to match any price? Mosaic is the price they have to match.

Ready to see how Mosaic can help? Click here to learn more.

MORE THAN CARS MOMENTS

Smiles All Around

Somebody once told me that genuine compassion is treating somebody else's problems like they are yours.

Back in December, our friends at Beaver Toyota of Cumming granted Mrs. Jan's wish from The Fish Christmas Wish.

Mrs. Jan, battling breast and brain cancer, wished for her husband's dental work as a Christmas gift but was unable to afford it due to medical bills.

Partnering with Grady's Dental Care, Beaver Toyota's Collision Center ensured her husband's teeth were fixed at no cost. They also provided gift cards for car payments, groceries, and additional needs. The extensive dental work resulted in a new set of teeth for Jan's husband.

The team at Beaver Toyota once again shows us that compassion is a skill you get better at with practice.

AROUND THE ASOTU-VERSE

Webinar: Tomorrow!

Quick Hits

• Chinese-funded and operated cannabis farms are popping up in the US. ☁️ 

• Target is expanding its third-party market to include sellers with Shopify partnership. 🛍️ 

• A major record company is suing an AI music maker. 👩‍⚖️ 

History

• 1876: Native Americans win the Battle of Little Bighorn, also known as Custer’s Last Stand. 🏹 

• 1947: The Diary of a Young Girl (better known as The Diary of Anne Frank) is published. 📕 

• 1956: The last Packard leaves the Detroit plant ✌️

Thanks for reading, friend! Whatever we do today, let’s do it like we mean it. Anything less would be unfair to our task and ourselves.