48 Hours To Full CDK, EV Prices Below Tesla, Dealership ‘Office’ Parody

The Automotive Troublemaker w/ Paul J Daly and Kyle Mountsier

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The second half of 2024 is rolling and we’re talking about CDK’s race to fully restore services in teh next 48 hours. We’re also covering the drop in average EV prices below Tesla's for the first time in over a year as well as how our friends at Mohawk Chevrolet's "The Office"-inspired TikToks are taking the internet by storm.

• CDK Global expects its DMS to be fully restored by July 4 following cyberattacks that disrupted operations starting on July 19th for thousands of dealerships across North America.
  • CDK has been restoring services in phases, with many dealers already back online as of July 1.
  • Beyer Auto Group's CDK system came back online unexpectedly on July 1, which helped ease some anxiety among the staff about the indefinite outage.
  • Despite the restoration of the core system, their customer relationship management system and third-party integrations are still not functional, causing ongoing operational challenges.
  • Employees are now focused on the monumental task of recording all deals and service orders manually entered during the outage into the system, as explained by COO John Altman.
  • "There is some exasperation. I can see on their faces that they are just looking at this monumental task. But at least they know where they are at this point." - Said Altman
  • The disruption is expected to cause a 10% drop in Q2 earnings per share for major U.S. dealership groups, potentially costing nearly $1 billion.

• Automakers have cut electric vehicle prices to a level below Tesla's average for the first time since early last year, driven by increased competition and market dynamics.
  • The average transaction price of an EV, including Tesla, was $55,235 in April, $433 less than Tesla's average price.
  • The trend continued in May, with the industry average EV price being $56,648, $721 less than Tesla's.
  • Tesla's pricing cuts have influenced the market, pushing competitors to reduce prices or offer discounts, leading to an average discount of 12.4% on EVs in May.
  • Despite price cuts, new Tesla registrations fell 17% in April, while EV registrations excluding Tesla grew 69%.
  • Used EV sales have surged, growing 84% in May, as declining prices and federal tax credits make them more affordable for consumers.

• Mohawk Chevrolet in upstate New York has gained viral fame with a mockumentary-style TikTok series inspired by "The Office," featuring real-life dealership antics.
  • The series, starring digital branding creators Grace Kerber and Ben Bushen, began with a video about hiding tiny ducks around the office, which went viral with nearly 2 million views for the fifth episode.
  • The videos are created quickly, with Kerber and Bushen writing, shooting, and editing each episode in a day, leading to significant engagement and a rethink of the dealership’s social strategy to focus more on TikTok.
  • "There are probably some big and funny personalities that you work with so just wing it and see what happens." - Gr

Hosts: Paul J Daly and Kyle Mountsier
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