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Hackers demand massive ransom as cyberattack plagues auto dealerships

Credit: Boast Volkswagen

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A cyberattack on the U.S. and Canada’s most commonly used auto dealer management software has rendered over 15,000 dealerships unable to make sales over the past few days, and those who claim to be behind the outage are demanding tens of millions of dollars as ransom.

Auto dealerships in the U.S. and Canada using the CDK Global software have been facing an outage since Wednesday, according to a person familiar with the matter in a Friday report from Bloomberg.  The outage has prevented dealerships from normal operations using the dealer management system (DMS), such as making sales, performing repairs, and following through on deliveries.

“It’s just mass chaos at this point,” said Diana Lee, CEO of marketing company Constellation, which works with many U.S. dealerships. “The dealer’s required to actually run a DMS for sales, service, parts, for every single functionality — even stocking a vehicle, you can’t do it without the DMS system. So it is a disaster.”

The company said on Thursday that it expects service to be out for several days, despite it briefly starting to work again in between cyberattacks on Thursday. The source, who asked to remain anonymous due to the privacy of the matter, also said that CDK is planning to make the payment.

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The person also said that the hackers are believed to be based in Eastern Europe, though conversations about how to handle the situation are still ongoing and could be subject to change.

The situation also stands to have a major impact on the auto industry as the end of the second quarter approaches.

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On Saturday, a CDK spokesperson told Automotive News that there weren’t any updates on the matter, while many U.S. dealerships face what is typically a very busy sales day. Dealers have said that they haven’t heard updates from CDK, while many are still attempting to operate as much as possible on what is typically the busiest sales day of the week.

Robert Serrano, the General Manager of several dealerships including New Country Toyota in Westport, Connecticut, said that his staff’s morale remained somewhat high, as they maintained plans for a busy Saturday—despite not having heard many updates from CDK on the situation.

“As of this morning, there’s been no communication,” Serrano said. “I mean, I’m hoping, and maybe this is just wishful thinking, that it comes on today because it’s the second-to-last Saturday of the month, and I’d love to bill out some cars, but right now, [it] doesn’t look that way.”

Automotive News report also spoke with Todd Edwards, one owner of the Iowa-based, family-owned dealership group, Edwards Auto Group. Edwards said that he was also expecting a busy Saturday, especially because “the general public is unaware of what’s going on.”

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Workers at the dealership group have also resorted to using paper and pencil for writing service tickets, as well as adding plans to follow up with customers via email.

“Parts is probably the hardest hit besides the actual accounting office,” Edwards said. “In sales, we’re able to transact customers but are unable to stock in trades and auction purchases.”

Ford wants more dealers involved in EV sales

What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

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Zach is a renewable energy reporter who has been covering electric vehicles since 2020. He grew up in Fremont, California, and he currently lives in Colorado. His work has appeared in the Chicago Tribune, KRON4 San Francisco, FOX31 Denver, InsideEVs, CleanTechnica, and many other publications. When he isn't covering Tesla or other EV companies, you can find him writing and performing music, drinking a good cup of coffee, or hanging out with his cats, Banks and Freddie. Reach out at zach@teslarati.com, find him on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

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Tesla brings Model Y L ‘Launch Series’ to the U.S. at $61,990

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Tesla has officially launched the Model Y L in the United States and Puerto Rico for $61,990. It is the longer-wheelbase version of the Model Y, and has been available in China since last year.

Tesla brings the Model Y L to the U.S. just months after it phased out the only pure SUV in its lineup, the Model X. It is slightly longer than the Model Y configurations that are already available in the U.S., and features a three-row, six-seat setup with Captain’s Chairs being among the many features that make this a truly fantastic offering.

The Model Y L is priced competitively at $61,990, and features 325 miles of range and a 0-60 MPH in just 4.4 seconds.

Tesla also added a handful of new features that are not available in even the Premium Model Y. Here’s a full list of its features:

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  • Heated/Ventilated Front Seats with Powered Thigh Cushion
  • Heated/Ventilated Captain’s Seats in Second Row with Powered Armrests & One-Touch Fold
  • Heated Third-Row Seats with Power Recline, One-Touch Fold & Child Seat Anchors
  • Improved Airflow, Increased Efficiency, More Range
  • 89 cubic feet of trunk space
  • Upgraded Acoustic Glass and Suspension to Minimize Road Noise
  • Adaptive Damping for a Smooth, Stable Ride
  • Staggered Tires for Enhanced Grip
  • Larger Tailgate for Better Rear Visibility and Bigger Windows Overall
  • 16″ First Row and 8″ Second Row Touchscreens
  • 19-Speaker Immersive Tesla Audio
  • 50W Wireless Charging Pads with Active Cooling and Charging Ports for All Other Seats
  • FSD Supervised and Integrated Grok AI

Tesla is also delivering these first units as a “Launch Series,” which comes with additional features, such as:

  • Door Trim Puddle Lights
  • Suede Dashboard Wing
  • Exterior and Interior Badging
  • Floor Mats
  • Sill Plates

The launch of the Model Y L in the U.S. marks a huge offering from Tesla to U.S. consumers. People have been calling for Tesla to bring a larger car to the U.S., and it needed it more than ever now that the Model X is gone.

It is a huge accomplishment for Tesla to get the Model Y L to the U.S., and after reporting strong deliveries today, it will be interesting to see how this car impacts future quarterly delivery reports.

Deliveries for the Model Y L “Launch Series” are slated for September or October of this year.

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Tesla just told us twice that Model Y L is coming to the U.S.

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Credit: Tesla

Tesla just told us twice that the Model Y L is coming to the U.S., and two social media posts definitely just tipped the company’s hand, as if they wanted it to be any other way.

The two social media posts basically confirm that the slightly longer version of the Model Y will be heading to the United States soon, and many have speculated that the company could launch the vehicle as soon as this weekend.

The first post was directly from Tesla, and it showed an incredibly long Dachshund, with words above that said, “Looking forward to the long weekend.”

Anyone who knows Tesla knows the company loves to troll its fans and have fun, and this is a perfect example of that. While not a direct acknowledgement, Tesla is very involved on social media, especially CEO Elon Musk’s platform X, and the company is well aware of what is being discussed within the community.

With recent sightings of Model Y L test mules in California, peeks of the vehicle at Giga Texas, and a large call for the car to come to the U.S., Tesla is simply stoking conversation with this.

However, the company also made another move that was recognized on social media. Tesla has a large gallery that includes photos of its products so media and others can use them. This gallery applies to the U.S. market specifically, unless otherwise specified.

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Tesla uploaded a Model Y L to the Gallery last night:

This seems to be another indication that the Model Y L is coming to the United States.

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Musk said last year that the Model Y L could make its way to the United States late this year, but it was not something that was set in stone by Tesla. The company definitely needs to establish something in the SUV market that is larger than the Model Y, and the Model Y L might be the answer.

Even still, there are consumers out there who would love Tesla to develop something even larger, like a competitor to the Tahoe or Expedition. Tesla has not really given much of an indication that it will go in that direction.

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Tesla is using vehicle microphones to improve build quality: here’s how

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Credit: Tesla

Tesla is using the vehicles’ internal microphones to improve build quality, Vice President of Engineering Lars Moravy revealed recently.

It’s no secret that Tesla is always finding ways to make its manufacturing operations more efficient, accurate, and valuable. Constantly trying to make its cars better, the company has never placed any restrictions on what it will do to improve everything from panel gaps to paint.

As Teslas have been driving autonomously on the property of the Gigafactory Texas plant for a while now, Moravy revealed to Herbert Ong in a new interview that cars rolling off production lines now autonomously navigate themselves through a bumps, squeaks, and rattles (BSR) portion of the line. This helps to identify any loose or improperly installed internal parts.

The cabin’s microphones, which are used for a variety of things in ownership, simultaneously monitor any noises inside the vehicle while it rolls through the BSR portion of the production line. Moravy actually revealed that Tesla is trying to build “Full Self-Hearing,” an AI system that will detect minor imperfections so they can be corrected before delivery.

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It’s no secret that build quality is something that Tesla struggled with as it scaled to a fully massive production operation that manufactures over 1.6 million vehicles per year. However, in recent years, especially, there have not been as many complaints. Tesla has truly improved upon its build quality and paint quality over the past several years, especially in the U.S.

Tesla’s ‘megacasts’ are key to massive build quality improvements

While those improvements have been evident, there are still some complaints; no automaker is perfect with this. But this step will now ensure that every single car that rolls off the production lines at Gigafactory Texas will be void of any creaks, squeaks, or squeals when it leaves the factory.

This measure is one of the most unique we’ve seen in terms of a strategy to avoid build quality issues, but it is not exclusive to Tesla.

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Ford uses acoustic analysis AI to find abnormalities in seat motors, climate control units, and other components. Suppliers and OEMs will also use microphone arrays or particle velocity sensors in end-of-line stations.

The full interview with Lars Moravy is available below:

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