#750 - 🚗 CDK Global Announces 1-Month Remedy

TOGETHER WITH

Welcome to Tuesday, Friend!

Today, we look at the ongoing CDK Global story, visit Lucas County, hear some news from auto brands, and finally, see a metal heart (for real).

We love your feedback, so feel free to hit reply and let us know what you liked, disliked, loved, or hated about today’s email. We can’t promise we will do better, but we will read your email. 😉 

Keep Pushing Back
-Paul, Kyle, Chris & Kristi

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BUSINESS

CDK Global Update

We've got an update on the CDK Global situation. Listen to this morning’s show to hear more from Paul and Kyle, or read on.

IKYMI

CDK recently got their dealership management system back online after those cyberattacks on June 19th. They have offered affected dealerships a one-month rebate on their subscription fees as compensation.

Dealers and Community Response

While dealers appreciated this, many are saying it’s not enough. They've had to deal with extra costs from overtime, using slower manual processes, and hiring temporary third-party software solutions.

Dealers like Judy Farcus Serra from Headquarter Automotive think three months of compensation would be more fair.

Damon Lester from Nissan of Bowie mentioned their costs, especially for manpower, which were way higher than the rebate CDK offered.

Our friend Wayne Rampone Jr. said on LinkedIn, “I think it will take more than that if they want a chance at their customers re-signing with them when their contracts are up.”

David C Rogers suggested that this may be CDK’s attempt to anchor negotiations in their favor.

What do you think? Leave a comment and we will use it in a piece of community content. 🤔 

Class(y) Action?

On top of that, CDK is now facing an antitrust class action lawsuit. A federal judge in Chicago has allowed software vendors to band together to sue CDK for allegedly restricting access to data and causing overcharges. AutoLoop and other vendors are accusing CDK of suppressing competition and are seeking $395M in damages. This class action includes 244 software vendors, and it’s set to go to trial in Wisconsin, though no date has been set yet.

Bid Your Bitcoin Goodbye

Also, it’s worth mentioning that CDK reportedly paid a paid a $25M ransom in Bitcoin to end the cyberattack. The attack lasted two weeks and forced dealers to go back to manual processes, likely affecting vehicle sales for June.

So, CDK has a lot on its plate right now, both in trying to compensate their dealership customers properly and dealing with these legal battles. Let’s see how it all unfolds! 

TOGETHER WITH TRADEPENDING

10 Cars Sold in 11 Days by a Green Pea

It's the sales managers dream...get new sales reps up to speed so fast they're churning out new sales like an established pro.

That's just what happened at Matt Bowers Chevrolet when a rookie rep started sending out digital brochures to all of his leads.

Get the scoop here!

MORE THAN CARS MOMENTS

Yark Automotive Group Brings Justice

Shout out to Charlie Sectish for bringing this one to our attention.

Our friends at Yark Automotive Group and 13 Action News have generously donated $1,300 to Isaiah 117 House to support foster children during their difficult transitions. This contribution aids the organization's mission to provide a nurturing and comforting environment for children entering the foster care system.

Jennifer Bohnsack, a 12-year foster parent, highlighted the challenges children face when entering the foster system. They often arrive with inadequate clothing and wait long hours for placement. Motivated by these hardships, Bohnsack has championed bringing Isaiah 117 House to Lucas County, aiming to create a welcoming environment for children on their removal day with personalized care and comfort.

"When children enter the foster care system, they do not always have the items they need. Sometimes, they are taken to the Children's Services office building for hours while waiting for a placement," Bohnsack explained. "On removal day, they would come to a home, greeted by volunteers who know their name, with their favorite foods prepared, and freshly baked cookies in the oven."

"Learn to do good; seek justice, correct oppression; bring justice to the fatherless, plead the widow's cause." -Isaiah 1:17

BUSINESS CONT’D

Daily Digest: Alliance, Green Light, H2, and Hydrogen Sketch?

The Honda-Nissan-Mitsubishi Alliance

Amid fierce competition and stringent emissions regulations, Honda and Nissan's existing collaboration may soon include Mitsubishi. Reports suggest Mitsubishi has signed an NDA to discuss joining Honda and Nissan's alliance, aiming to reduce R&D costs and accelerate development.

This potential partnership would strengthen their position against rising Chinese car manufacturers.

Germany Gives Green Light to VW-Rivian JV

Germany’s antitrust authority has approved a potential joint venture between Volkswagen and U.S. electric vehicle maker Rivian. This collaboration aims to enhance their competitive edge without raising significant antitrust concerns.

Could we see a VW Beetle with Rivian's off-road prowess?

Up Hill Half: Ford, GM, and Stellantis

The U.S. automotive market is stabilizing after a period of high prices and low inventory, presenting unique challenges for major automakers.

Ford

• Shares fell 20% last week.

• Adjusted earnings are expected to be $2-$3B in the second half.

• Focuses on consistent cash generation and maintaining dividends.

GM

• Expects lower second-half earnings, $4.7-$6.7B.

• Increased marketing costs and declining vehicle prices.

• Struggles with continued losses in China.

Stellantis

• U.S. sales were down 16% in the first half of the year.

• Faces significant challenges in North America.

• Plans 20 new model launches and price cuts to boost sales.

Hydrogen Is Super Sketchy??

We saw a report that “hydrogen is sketchy” and decided to read more.

What’s happening? Cummins, a leading engine manufacturer, opened a new Powertrain Test Facility in Darlington, UK.

The company will test ultra-low and zero-emission technologies, including hydrogen and electric vehicles.

Why is it “Sketchy?” Extensive safety measures for hydrogen, such as fuel leak sensors and blast-resistant walls, highlight the risks of hydrogen use, raising questions about its viability compared to battery electric vehicles. Cummins' efforts emphasize the ongoing debate over the safest and most efficient future power sources.

The article essentially covers the layers of safety required to work with hydrogen vs. electric vehicles.

It turns out it’s a little riskier to work with liquid than lightning. Who’da’guessed?

TECH

Heavy Metal Heart

For the first time, a fully mechanical heart made by BiVACOR, using maglev technology like high-speed trains, has been implanted in a human.

This titanium heart, which replaces both ventricles and has just one moving part, aims to keep patients alive while waiting for a heart transplant. The innovative design reduces wear and tear, potentially lasting longer than previous models.

This major step in medical technology offers new hope for those with end-stage heart failure.

Quick Hits

• Even McDonald’s is feeling the pinch of rising food costs. 🍔 

• SearchGPT is taking aim at Google. Have you tried it yet? 🎯 

• The new Deadpool movie may have revived the MCU along with the summer theater sales. 🎞️ 

History

• 1898: The first printed automobile advertisement. 🥇 

• 1975: Jimmy Hoffa disappears from the parking lot of the Machus Red Fox restaurant in Bloomfield Hills, Michigan at about 2:30 p.m. He is never seen or heard from again. 🤠 

• 2003: The last production Type 1 VW Beetle. ✌️ 

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