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Collision Repairers Feel Downstream Effects of CDK Global Cyberattack By Paul Hughes Autobody News Ripples from the late June ransomware attack on auto dealership software provider CDK Global spread to the independent collision repair shops that buy OEM parts from their local dealerships, which struggled with a supply chain disruption on a scale not seen before.
them — a $100,000 GMC Denali is waiting on door clips, which nobody is sure are in the warehouse. In the days following the attack, he was able to take delivery of “$20,000 worth of parts, and it’s on a paper ticket” because dealer computers were down, forcing them to revert to manual processes, causing significant operational slowdowns and customer service delays.
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Vol. 15 / Issue 5 / August 2024
REGIONAL NEWS
New Jersey to Tax EV Sales for First Time Since 2004 By Brian Bradley Autobody News
For the first time in two decades, New Jersey sales of fully electric vehicles (EVs) will be taxed. The tax will rise from zero to about 3.3% on Oct. 1, and double to approximately 6.6% on July 1, 2025. New Jersey Gov. Phil Murphy signed the measure into law June 28 as part of New Jersey’s $56.7 billion fiscal year 2025 budget, minutes after the state legislature passed the bill. Car buyers in New Jersey haven’t paid sales taxes on fully electric vehicles since 2004. The legislation comes in the same year the state government has worked to balance the state budget through collecting
more revenue on automotive sales and usage. In March, Murphy signed legislation hiking New Jersey’s gas tax a total 10 cents through 2028, and imposing an annual $250 registration fee on EVs, rising $10 yearly through July 2028. Both the gas tax and registration fee hikes started in July. Bill supporters claimed the new law helps put the sales markets for EVs and non-EVs on equal footing, while bill opponents argued the legislation curbs incentives that were driving New Jersey toward its goal of registering 330,000 EVs by 2025. “It’s about having a level playing field between regular, internal combustion engine cars and batteryelectric vehicles, too, now that l CONTINUED ON PAGE 22
REGIONAL NEWS
Kious Kountry Auto Collision Center Inc., in Waukon, IA, immediately upped its liability insurance to cover the uptick in vehicles sitting on its property, waiting for parts the shop couldn’t order from dealerships in the wake of the attack.
“It’s caused huge disruptions — massive problems across the country,” said Beau Bennett, owner of Kious Kountry Auto Collision Center Inc., a 16,000-square-foot shop in Waukon, IA, that relies on two dealers for parts, as “95% of the parts I put on are OEM,” he said. Bennett had to immediately boost liability insurance as the number of vehicles stored onsite at his shop grew, held up by the sudden inability to get some of the parts to finish
“It’s not [dealers’] fault,” Bennett said. He’s worked with his vendors for 30 years and intends to stick with them. In the late night hours of June 18, continuing through June 21, Illinoisbased CDK Global Inc., a software and data provider to 15,000 automotive dealerships, was hit by several cyber attacks, leading CDK to shutter its system, including software, data
New York State Senate Passes Bill to Curb Sidewalk Parking Near Auto Repair Shops By Ben Shimkus Autobody News
The New York State Senate approved a bill requiring New York City automotive repair shops to obtain community approval while registering with the DMV. The bill passed the Senate on June 4 and now awaits consideration by the State Assembly after the chamber’s June break. The bill’s sponsor, Sen. Gustavo Rivera, D—33, and co-sponsor, Sen.
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Credit: Shutterstock
INSIDE THIS ISSUE 8
10
Columnist Mike Anderson: Post-Crash Inspections Find Multiple ‘Deformed’ but Undeployed Airbags Columnist Abby Andrews: Finding Your Collision Repair Shop’s Niche
Could Be Key to Success
4
Columnist Stacey Phillips Ronak: How to Ensure Your Collision
20
Columnist John Yoswick: Collision Shop Owners Create Work-Life
Repair Business Has a Future
Balance, Offer Superior Benefits to Attract, Retain Techs
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