Ford's Q2 sales slow as industry reels from CDK cyberattack

FORD reported slower sales growth for the second quarter on Wednesday (Jul 3) as the US auto industry reels from a cyberattack that impaired a key software system used at dealerships.

The Detroit automaker sold 536,050 vehicles in the quarter, about 1 per cent higher than last year. That compared with a 10 per cent rise in 2023.

Automakers had banked on outright demand for vehicles after the pandemic as more people returned to offices, but high borrowing costs and economic uncertainty have led to a slowdown.

The outage at retail technology and software provider CDK in late June, a crucial selling period, was the latest hiccup for US automakers that were recovering from supply-driven challenges.

However, analysts expect automakers to recoup lost sales despite the hit.

Detroit peer General Motors, Toyota Motor’s local unit and Honda also reported slower sales growth for the second quarter. GM said some sales would shift to the current quarter due to the hack.

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Overall, US new vehicle sales in June stood at around 1.32 million units, representing a seasonally adjusted annual rate of 15.29 million units, according to data released by Wards Intelligence on Tuesday. REUTERS