All articles tagged with #auto dealerships
US retail sales excluding autos rose by 0.4% in June, the highest increase in three months, indicating stronger consumer spending at the end of the second quarter. Total retail sales remained unchanged due to a 2% decline in auto dealership receipts. The figures are not adjusted for inflation.
Hackers have targeted CDK Global, a software provider for car dealerships, demanding tens of millions in ransom. The cyberattack has disrupted operations at dealerships across North America for three days. CDK has shut down most systems as a precaution and is consulting with external experts, with no clear timeline for resolution. The hackers are believed to be based in Eastern Europe.
The Federal Trade Commission (FTC) has introduced a new rule, called the Combating Auto Retail Scams Rule, aimed at preventing auto dealerships from using hidden fees and bait-and-switch tactics. The FTC estimates that these practices cost Americans $3.4 billion annually and add 72 million hours to their car shopping time. The rule prohibits misrepresentations about price and requires dealers to disclose the actual price, clarify that additional items like extended warranties are optional, and provide upfront information about the full monthly payment. It also bans add-on items that provide no value to consumers and prohibits dealers from falsely suggesting military affiliations. The rule comes in response to numerous consumer complaints and increased deceptive practices during the pandemic.
Auto dealerships, including Ford, General Motors, and Stellantis dealerships, are preparing for potential inventory shortages as the United Auto Workers (UAW) union threatens a strike if new contract agreements are not reached. Dealerships are working to shore up vehicle and parts inventories in case production lines stop rolling. A strike against all three automakers could result in 100,000 fewer vehicles produced each week. Used car prices have risen significantly in recent weeks, and new car prices are also increasing. The UAW strike would have a significant impact on dealerships, communities, and the U.S. economy as a whole. Negotiations are ongoing, but both sides are negotiating from positions of power.