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

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 closer to the refueling time of gasoline cars.
• The battery's design generates less heat, improving safety and longevity.
• Nyo

Hosts: Paul J Daly and Kyle Mountsier

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Transcript

Paul J Daly: 0:03

All right, we got the Friday feelings going down. Yeah, July 12 Be awesome travel cvk is breaking checks to dealers and we're gonna talk about whatever else is going on but it's still Friday right now.

Kyle Mountsier: 0:16

So Friday so

Unknown: 0:18

Friday who isn't when they stop and stay when they see

Kyle Mountsier: 0:21

me? You know?

Paul J Daly: 0:24

Man, we used to let the music run for a minute.

Unknown: 0:28

I am the boss.

Paul J Daly: 0:29

I am the dawn we haven't done that a long time.

Unknown: 0:32

I don't need Joe farm life was so

Kyle Mountsier: 0:33

hard. The songs dope. Song is so dope. It's the only song that's dope that this artist makes. Look I

Paul J Daly: 0:39

get sick of a song we played this song 600 times. Like this might be number one on my Spotify plays I play it once a day. She's actually an artist that lives near in New York City. And we were talking about like if we asked if we could ever actually come out to a soda con. Maybe 2025 is the year maybe that's the day we got a fun little a soda con 2025 maybe drop on Monday. I don't know just drop a little easter egg right there. It's pay attention. If you're not, you know, if you're not an email, get the email ASOTU.com Alright, where were you gonna say I interrupted you with the jam.

Kyle Mountsier: 1:12

Well, no, I'm I'm you know, rain is great. And we all need rain for grass to grow. But when you get like a five day sunny, warm stretch in the summer, there's just there's no way you can enter Friday and Saturday not feeling good about it. You know what I mean? That's true. Something that it does to the inner psyche. So that's true. That's

Paul J Daly: 1:38

good to know. Is your is all the grass getting brown? Does it get brown in Nashville love it?

Kyle Mountsier: 1:42

They don't that doesn't stand a chance mid July. Oh, got it. Yeah, get the heck out of that thing

Paul J Daly: 1:48

still does still go on Brown. Brown. Oh, man, you and I are going to be traveling quite a bit. And Michael Cirillo will be around the world actually. He's gonna like Holland, we're gonna release that info soon. But yeah, we released we're gonna be at it next week, we're on the road a little bit get to go to Beaver Toyota, MC, the charity golf tournament, which is an amazing event, we'll try to make a little something from you. So we'll be coming to you live from the dealership golf event on Monday morning. So tune in then also heading out to Idaho for Darren Jones, brand building Summit, whatever that thing is, we're going to be emceeing the automotive amplifiers contest for Reynolds and Reynolds. We're going to name Ed, we're going to the welcome conference to hang out with we'll get Dara trying to bring all this stuff as close to you as we can. All these things that are happening, all these insights are trying to get out there so we can bring it back to you. Because it opens our thinking it connects us with one another. And I gotta say, I've seen a network effect in the soda community this year. Like right start to multiply. You are so right, like, just seeing people meet and people understanding where they're at. Everybody kind of like travels as a crew and starts to impact the places where they go. And not just that, but you start to see all these pieces that people are learning start to trickle deeper into the industry. Yeah, I never get upset. When someone puts forward like a thesis that sounds a lot like the sort of thesis just copy that was okay, copy it, steal it, all the stuff done all the stuff. Everybody wins. Everybody was speaking of everybody winning, maybe. We do well in a letter to over 15,000 dealerships CDK global CEO Brian McDonald committed to compensating customers for financial losses caused by the June cyber attack, saying quote, we recognize the events have been challenging, and we will provide you with some financial relief, thank dealers for their patience and said quote, with all of our major applications available to dealers, and OEM and third party integrations coming online quickly, our restoration process is now coming to a close, it's so good to hear all. He went on saying to start to reassure people about security improvements, saying they've taken steps to secure environment, we'll continue to work with top third party security experts to constantly evolve our approach. As a market leader, we're well equipped to make the ongoing necessary investments. There you go. Kind of goes on to say you know, whether or not you're still leaning into trading, whether or not you're CDK customer or not, they've developed the free tool to conduct training to better prepare for potential cyber incidents, which is pretty cool and also to help employees avoid pitfalls and the things that actually kind of open the doors and give people information phishing, scams etc. They didn't share the specifics of the compensation, but they said that information will come to customers through their engagement team. So read a case good friend of ours, CEO of rare case Automotive Group suggested this approach. She said I would suggest offering dealers over over the course of a year a credit equivalent to three months of services that would treat large in small groups equally, so. They Yeah,

Kyle Mountsier: 5:03

that seems a little aggressive to me. But you know, I understand that there's, you know, and how

Paul J Daly: 5:10

much is well, I don't even know how much is like three months of service? Do you know? Well, I

Kyle Mountsier: 5:13

mean, it depends on what you're buying through CDK. I mean, you could be in for 15 grand a month on per rooftop. Okay, depending on how much you're buying from them. Yeah, for sure. Yeah. You know, so I spreading it over a year, definitely better for CDK. Because then they wouldn't get hit with just basically no revenue for a month. Right. I think that's probably something of what they'll do, just to not, you know, to mitigate kind of the short term loss. I love the fact that they're providing more training tools for dealers along the side. You know, back when this was happening, I was talking about how software companies are held to the standards of things like sock to ISO standards that that demand data proficiency in how data moves, who has access to it, what logins, all that type of stuff, you see these mid to large sized groups, implementing much more strict IT policies. And so I think like more and more training for the small to midsize to even single rooftops understanding like what data you're actually tapping into have access to your employees have access to and how you're handling that is something that is just of heightened awareness now, which is great for the industry. Yeah,

Paul J Daly: 6:21

definitely. You're starting to hear like more and more people know what sock two is. Right? Right. I think a year ago, there were just the nerds that knew what it was. And now it's like, no, maybe we should pay a little bit more important. Yeah, it's kind of a thing. It's kind of thing. So it's good to see them on the up and up thinking about how they can you know, do their best to make dealers hold through the transition. I saw a story and it says it was reported that the the ransom was actually 25 million. Oh, wow. Yeah, I should we should have linked it up. I'll see if we can get it to link it up. But you know, it was a website I think was Yahoo Finance. I don't know one of those. But they basically said like someone who tracks this stuff, was able to track a $25 million transaction into this. I don't know how they do all that. How are you monitoring the heck are you

Kyle Mountsier: 7:05

monitoring?

Paul J Daly: 7:07

Oh, sorry, reading. Okay, our producer Nathan's typing in the show notes that he saw it on retail wire? Yeah, that must be where I saw it. But that's the first I saw like someone who claimed that it was a verified amount which is lower than I thought it would be. Yeah, yeah. Car dealers they got a better deal

Kyle Mountsier: 7:20

perspective of it. Yeah, yeah, they did negotiation. Kudos.

Paul J Daly: 7:24

negotiation with someone I'm gonna trust the dealer.

Kyle Mountsier: 7:28

what group you're gonna go negotiate with?

Paul J Daly: 7:33

My wife acid Todd computer the other day she's like, do you negotiate a lot? He goes, I negotiate everything.

Kyle Mountsier: 7:40

I am the guy that associates at Walmart. It does. Yeah,

Paul J Daly: 7:44

it can happen you just have to know who to ask. All right. I don't want to say wait for this next one. We're going right into the next story. Get this Kia surged ahead in q2. of US electric vehicle sales thanks to their Evie nine model they placed third in the US market behind obviously Tesla number one. Ford number two but they passed Hyundai to be the third largest Evie seller. They sold over 29,000 in the first half of 2024. They own 4.6% of us Evie market share. Kia does the new Evie nine they sold was 10,000 units in the first six months. There Evie six sales increased by 40% in q2. The top 10 right now are Tesla Ford Kia, Hyundai, BMW rivian Chevrolet, Mercedes, Toyota and Cadillac. So they go yeah, there were 5.4 in q2 market share versus Kia or Hyundai is 5.1 Kia spokesperson said the rapid growth in the Evie sector is a testament to innovative models and strategic market approach. As a note by the way yesterday we learned that Tesla will be delaying their Robo taxi reveal oh well no they announced that they pushed it off from August now it is October

Kyle Mountsier: 8:58

so you knew that was coming back to the Kia story key is no longer a sleeper just so everybody knows like no Kia is not under a rock like just coming from the back they are they are in pursuit of leadership and so I think just a brand to be reckoned with

Paul J Daly: 9:14

anyone who owns a Kia store is like we do this we knew we're crushing now.

Kyle Mountsier: 9:18

I'm telling you what the these Evie nines and Evie sixes they're good looking they are laid Nice driving vehicles like that. You can't you can't shake a stick at these guys. And so it's no wonder that a

Paul J Daly: 9:31

little more range and a little more range for sure. Did you see I saw a post yesterday from I think was Mohawk Chevrolet. And they got their first two Silverado EVs. Yeah. And it was like the Nice model and then like the work truck model, get this range. 440 Miles that's strong. I can't think I can't think of anything stronger.

Kyle Mountsier: 9:54

Honestly. All day. Yeah, in a truck. Not a chance a nice

Paul J Daly: 9:58

looking pickup. Yeah, I mean so shit. I don't know maybe GM and GM is just like GM is kind of late they have the bolt right but they took it off the market they're putting the new bolt out there's trucks are just getting out there so I'm thinking GM is gonna make its way up the list pretty quick

Kyle Mountsier: 10:13

they're gonna be fine. I'm not worried about them like they they know what's up for sure they've been they've been, you know their skateboard mentality of this battery pack. I think it's gonna win. It's kind of the same, you know, mentality that rivian had, you know, and this like interchangeable bottom layer. Yep, really smart.

Paul J Daly: 10:31

Yep, yep. Yep, that's batteries. Speaking of really fast segue. The key element into solving the Eevee challenges a new startup

Kyle Mountsier: 10:40

from Cambridge. Nio bolt great name has unveiled a revolutionary battery that charges in get this under five minutes addressing a major Evie drawback, the new 35 kilowatt lithium ion battery charges from 10 to 80%. In just four and a half minutes. Now it needs to use a 350 kilowatt DC Ultra rapid charger, which is currently rare. There's a company out in New York doing this, this company from Cambridge is doing it. But they are expecting that technology to be come more widespread by the end of the decade. It's much faster than a current charger, which is typically over 20 minutes for the same type of range. So we're getting closer to the fueling of the refueling time of a gas car apps. It also generates less heat, improving sound they do them Chevy, especially with that speed, less heat, okay, doing something. Right now they're negotiating with eight electric car manufacturers for potential deals, although the 35 kilowatt battery is much smaller than the typical 85 kilowatt battery found in most American EB. So, you know, still a range question on only 35 kilowatt hours and whether or not it can handle the larger cars, especially in the American manufacturing. Their CEO size should have already Shiva Reddy said, we are enabling the electrification of new products and services currently considered enviable or impossible.

Paul J Daly: 12:09

So I think the 35 kilowatt thing gives a little context, right, right, the battery is less than half the size. And if you charge a battery, less than half the size and four and a half minutes of it, that means you may be able to get under 10 minutes, right on the larger battery, which is still 100% improvement, man. So but yeah, as these things closer I, a lot of people have been saying, right, these are going we're going to figure out how to charge the battery faster. And once you get in that five to eight minute window, like you really could be back to gas station style experiences. Yes. Right. And so like any that makes it really complicated now all of a sudden, yeah, because you have a lot of infrastructure investing in and again, not

Kyle Mountsier: 12:51

just that not like get out, you think about okay, daily driver type stuff. Oh, that's warehouse charging is fine, right. Like we've people have not, it's the it's the road travel that if you have to stop for half an hour, 40 minutes to get that full charge. That's what have been some of the biggest drawbacks. Yeah. Well, and just the fact that like vertical living is going to be the limit, right? Yes, yes. Yeah. But

Paul J Daly: 13:16

But still, I mean, that infrastructure still involves people parking for a long period of time. If you have a car it's right. So there's even a thing there. Yeah, so question to ask, would you take less range for quicker charging if you get a vehicle that charges in four and a half minutes? Would you take less range? I don't know. I don't think I would. Not yet. I would not yet. I would like now well in again, this is because a I would charge at home if I had an Eevee Yep. And b I can plan my trip if I was taking a trip enough to do 20 minutes instead of four and a half. Yeah, because well as you can still drive for three hours on that charge. Right Like me

Kyle Mountsier: 13:54

Like like we're stopping with kids. It's 20 minutes, no matter what. Yeah,

Paul J Daly: 13:59

like, remember that remember that time you know you stopped for gas and no one got out of the car. When you have a bunch of kids. That never happened? Never. Never is gonna happen. Hey, we hope you have an amazing weekend. If you are working the floor. Hey, smile a little bigger. Listen to what people are saying. Give them what they need. We will see you here tomorrow or Monday from the golf course.