JULY 2024 NEWSLETTER

The Aftermath of the CDK Global Hack: All Fingers Pointing at BlackSuit

The month of June 2024 will go down as host to one of the most disruptive events in dealership history - the hacking of CDK Global. By the time fireworks lit up the July 4 sky, all dealership operations were restored, but Bloomberg estimates that the entire two-week event may have cost the industry as much as $1.2 trillion in associated losses.

The hacking group behind the data breach is BlackSuit, a relatively unknown cybercriminal syndicate that spun off of the Russian-linked Royal Locker group. BlackSuit has been attributed to about 95 other hacking events in the US and Canada. Taking their actions to a more villainous level than other hackers, BlackSuit carries out "double extortion" tactics that lock up an organization's data while also threatening to sell sensitive information. The entire event brought dealerships to their knees, along with others who rely on dealerships.

Independent auto body shops that buy OEM parts from dealerships were forced to work around supply chain disruptions caused by the attack. An owner of a collision center provided an inside view of the workflow disruption, sharing that 75-80% of the parts purchased in his state come from local dealerships... Read the full article on the MSN website.

Episode 12: Great Leadership Fosters the High Performance Environment

Welcome to the FixedOps UX Coach Joe Clementi, VP of Service Operations at MobilityWorks, the leading dealer of wheelchair vans. He’s always carrying the torch for our industry, serving as an organization performance coach, author, thought leader, mentor and executive coaching. Joe’s chops were earned on the front lines in the dealership as a GM for several brands, including Honda, Kia, Ford, Subaru and Volvo. Joe is an example of a leader you can take out of the dealership, but the dealership can never be taken out of the leader. Watch the full episode on the Recall Masters website.

Why the Price Game is a Losing Strategy, But Discernable Value is Everything

A Blog Post by Sean Reyes, Chief Marketing Officer for Recall Masters  

The market feels unsettled, but the US economy has yet to convincingly shift into a recessionary cycle. That’s not to suggest that the average consumer doesn’t feel the impact of high inflation, shrinking personal savings, skyrocketing debt and crippling interest rates for loans. Dealers clearly feel the brunt of a tightening economy, especially as it relates to new vehicle pricing, loan approvals and consumer debt-to-income ratios. 

There’s no disguising it – we’re all feeling it, though consumer spending has been rather stable. That’s about to change, as US consumers have stretched their finances to the breaking point and have no other choice but to curtail spending. The tremors could force dealership service departments to audit pricing or face further defection and service declines.

Global economic indicators that the US economy is next in line. In New Zealand, consumers are giving up spending at a rate that surpasses the downturn of the global financial crisis (GFC), and is close to passing that

of the 1980s market crash, as well as the tough times of the 1970s. Spending was down 2.3% compared to the same month last year, despite population growth. In the UK, British consumers reined in spending...Read the blog post in its entirety on the Recall Masters website.

Transmission Recall Affects More than Half a Million Ford F-150s

Ford has recalled more than 552,000 F-150 pickup truck over an issue with the transmission that could result in a loss of control. Affected vehicles include model-year 2014 F-150s only. The issue specifically involves a loss of signal between the transmission output shaft speed sensor and powertrain control module, resulting in an expected downshift into 1st gear regardless of what speed the truck is traveling at. An unexpected downshift could cause the vehicle to lose control, increasing the risk of a crash. Read more about this recall campaign on The Hill website.

Approximately 145,000 Toyota and Lexus SUVs Affected by Airbags

Toyota is recalling approximately 145,000 of its 2024 Toyota Grand Highlander and Lexus TX vehicles due to a problem with the vehicles' airbags. The recall stems from a curtain shield airbag on the driver's side not deploying as intended during certain crashes if the driver's window is rolled down. Toyota said it is currently developing a remedy for this issue and that customers will be notified of this issue by the middle of August 2024. Read more about this recall campaign on the USA Today website.

More Recall Campaign News

• 30,000-Plus Ford Mustangs Recalled for Unintentional Steering Issue
• VW Recalls 84K Golf, Atlas Models for Faulty Back-up Camera
• Stellantis Recalls 1.16 Million Vehicles Over Rearview Camera Issue
• Kia Recalls 460,000 Telluride SUVs Over Fire Risk
• Chrysler Recalls More Than 211,000 SUVs and Trucks Due to Anti-lock Brake Issue