CDK To Pay Dealers, Kia Over Hyundai, A 5-Min EV Charge

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We’ve reached the end of another week in the automotive industry. There’s a buzz around news that CDK will financially compensate dealers for their losses due to DMS outages, more interesting Q2 data involving Kia’s EVs and a new battery that could help drive EV adoption.

In a letter to over 15,000 dealerships, CDK Global CEO Brian MacDonald committed to compensating customers for financial losses caused by the June cyberattacks, saying "We recognize the events have been challenging, and we will provide you with some financial relief."

• MacDonald also assured ongoing security improvements: "We have taken steps to secure our environment and we will continue to work with top third-party security experts to constantly evolve our approach. [As] a market leader, CDK is well equipped to make the ongoing and necessary investments."
• "For the industry, we are offering to any dealer — regardless of whether or not they are a CDK customer — a free tool to conduct training to better prepare for potential cyber incidents and to help dealership employees avoid common pitfalls."
• Specifics of the compensation will be shared by CDK’s Customer Engagement Team, though a spokesman stated CDK didn’t have "further detail beyond what's in the letter to share at this time."
• Rita Case, CEO of Rick Case Automotive Group, suggested this approach: "My suggestion would be to offer the dealers, over a year, a credit equivalent to three months of their services."
• It was reported that CDK payed a $25M ransom to resolve the outage. 

Kia surged ahead in Q2 US electric vehicle sales, thanks to its new EV9 model. Kia placed third in the US EV market behind Tesla and Ford. The success of the new EV9 model and increased sales of the EV6 contributed to this growth.

• Kia sold over 29,000 EVs in the first half of 2024, capturing 4.6% of the US EV market
• The new EV9, a three-row electric SUV, sold 9,671 units in the first six months, and Kia's EV6 sales increased by nearly 40% in Q2.
• The top 10 EV manufacturers in the US right now are Tesla, Ford, Kia, Hyundai, BMW, Rivian, Chevrolet, Mercedes, Toyota, and Cadillac.
• Kia’s Q2 market share was 5.4%, topping Hyundai’s 5.1%.
• "Kia’s rapid growth in the EV sector is a testament to our innovative models and strategic market approach,” said a Kia spokesperson.

Nyobolt, a startup from Cambridge, has unveiled a revolutionary battery that charges in under five minutes.

• The new 35kWh lithium-ion battery charges from 10% to 80% in just over four and a half minutes using a 350kW DC ultra-rapid charger, which is currently rare but expected to become more widespread by the end of the decade
• Charge time is much faster than the current fast chargers, bringing EV fast charging from over 20 minutes clo

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