CDK Outage Warped Days’ Supply
Cox data crunching shows near-record inventory total.
Though the supply is up 110% year-over-year, obviously abnormal for any time of year, it should normalize in the next couple of months.
Pexels/Kelly
The CDK Global dealership software outage dramatically inflated days’ supply last month, along with affecting sales, new data show.
The disruption, which impacted thousands of dealerships across the country that conducted business without dealer-management system access and other tech tools, clearly put the brakes on sales, according to Cox Automotive figures.
New-vehicle days’ supply started July, just before CDK brought most of its dealer customers back online, to 116 days. Cox says that’s one of the highest days’ supply ever, lower only than that of April 2020, just after pandemic lockdowns began. June opened at 81 days’ supply.
That’s up 110% year-over-year and obviously abnormal for any time of year, Cox pointed out, but it said the metric should normalize as CDK fully restores its various software systems.
In addition to the shutdown, Cox said extreme summer weather events and power outages in some areas may also have dampened sales, including in Houston, which it said is one of the biggest U.S. automotive markets.
Total U.S. inventory ended June at 2.9 million, up 52% year-over-year, Cox said.
Originally posted on Auto Dealer Today
More Industry
China as Pacesetter
Automotive leaders huddled on where North America stands in the global picture and how it can strengthen its position against the Asian juggernaut’s surging industry.
Read More →
Find Efficiency in Fixed Ops
A new report shows how service departments can maximize their profitability through efficiency, productivity and the right tools in technicians' hands.
Read More →
Closing the Seat Gap
Mass-market brand vehicle seats are outpacing luxury versions when it comes to customer satisfaction, according JD Power research.
Read More →
Auto Industry Execs Talk Trade, Tariffs
Participants in a U.S.-Canada discussion tallied the costs and compiled a list of remedies, including preservation of the North American trade agreement that the U.S. recently declined to renew.
Read More →
Structure Leads to Optimized Auto Listings
As the average car-buying journey has shifted to a blend of digital and retail, a dealership’s vehicle listings must be optimized to answer shoppers’ questions clearly and accurately.
Read More →
Texas Dealerships Rebranded After Sale
The Norm Reeves group of stores had owned the three rooftops in the greater Dallas-Fort Worth metro area that now operate under a homegrown group’s signature.
Read More →
Positive Equity Reaches Record High
Mainstream vehicle owners who bought a car seven years ago are likely to have positive equity when trading in for a new vehicle, according to second-quarter Edmunds data.
Read More →
All on One Team
Since finance-and-insurance was added to the auto dealership, most stores’ F&I teams have been separated from sales like a car’s trunk is separated from the engine. It doesn’t have to – and shouldn’t – be that way.
Read More →
Auto Dealers Have Some Phone Homework
A midyear study found that stores can do a better job of converting both inbound and outbound calls into customer appointments for increased sales.
Read More →
Hyundai Ventures Aim for Deeper AI Dive
The automaker announced partnerships with several technology industry leaders to pursue an ambitious plan for integrating AI into its manufacturing and well beyond automotive.
Read More →