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Cybersecurity firm Kaspersky denies it’s a hazard after the US Commerce Dept bans its software

FILE - The sign is seen above the headquarters of Kaspersky Lab in Moscow Monday, Jan. 30, 2017. The cybersecurity firm Kaspersky has denied it is a security threat after the U.S. Commerce Department banned use of its software in the United States. Kaspersky said in a statement that the Commerce Department’s decision, announced Thursday, June 20, 2024, would not affect its ability to sell and promote its cyber threat intelligance offerings and training in the U.S. (AP Photo/Pavel Golovkin, File)

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The cybersecurity firm Kaspersky denied Friday that it is a security threat after the U.S. Commerce Department banned the use of its software in the United States.

The Moscow-based company — whose CEO Eugene Kaspersky is Russian — said in a statement that the Commerce Department’s decision would not affect its ability to sell and promote its cyber security products and training in the U.S.

Kaspersky said the government had based its decision on the “geopolitical climate and theoretical concerns” rather than independently verifying if there was a risk.

The government says Kaspersky’s Russian connections mean the company poses an “undue or unacceptable risk to U.S. national security or the safety and security.”

The company conducts much of its business in Russia and, as a Russian citizen who lives in that country, Eugene Kaspersky himself is subject to Russian law, the Commerce Department said in a decision dated June 14 that was posted on the Federal Register.

The department said it had considered Kaspersky’s objections to the initial findings of its investigation into whether its products or services posed a threat and found that the decision to ban its software was “well supported.”

Aside from the company’s obligation to abide by Russian laws and decisions, its software can be exploited to identify sensitive U.S. citizens’ data and make it available to Russian government actors, the department said.

“The risks to U.S. national security addressed in this Final Determination stem not from whether Kaspersky’s products are effective at identifying viruses and other malware, but whether they can be used strategically to cause harm to the United States,” it said.

Kaspersky boasts one of the world’s most popular consumer antivirus products and a research unit widely respected for routinely exposing elite hacking groups.

In 2019, The Associated Press found that an undercover operative had targeted several cybersecurity experts in an apparent effort to gather intelligence about critics of Kaspersky.

The company says it cannot deliberately obtain sensitive data on Americans and that its operations and employees in Russia can only access aggregate or statistical data not attributable to a specific person. It said the main impact of the U.S. government’s decision would be to benefit cybercrime, while also diminishing the freedom of consumers and organizations to choose the cyber protection they want.

“We look forward to what the future holds, and will continue to defend ourselves against actions that seek to unfairly harm our reputation and commercial interests,” it said.

Cox Automotive is closely monitoring the restoration of CDKs services, for more details/updates, click here

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Cox automotive forecast: us auto sales expected to finish first half higher by 2.9%, in line with expectations for slow growth.

Tuesday June 25, 2024

Article Highlights

• June’s new-vehicle sales pace is forecast to finish near 16.0 million, up 0.1 million from May’s 15.9 million pace but down 0.1 million from last June’s 16.1 million level.
• First-half sales volume is forecast to increase by 2.9% year over year, thanks partly to strong results from Toyota, Honda and Ford; Stellantis and Tesla tumble.
• Cox Automotive holds its full-year forecast steady at 15.7 million, with the sales pace through the first half expected to be 15.6 million, up from 15.4 million in the first half of 2023.

ATLANTA, June 25, 2024 – Cox Automotive forecasts U.S. new-vehicle sales in June to show mild improvement over last year, but high prices and interest rates continue to hinder a stronger market. In June, the seasonally adjusted annual rate (SAAR), or sales pace, is expected to finish near 16.0 million. This is down slightly from last June’s 16.1 million level and a modest uptick from last month’s 15.9 million pace.

According to Cox Automotive’s Kelley Blue Book estimates, new-vehicle sales volume through the first half of 2024 is forecast to increase by nearly 225,000 units compared to the first half of 2023 – an increase of 2.9%. The sales pace through the first half is expected to be 15.6 million, up from 15.4 million in the first half of 2023.

Charlie Chesbrough, senior economist at Cox Automotive, noted: “Sales have been relatively strong over the last few months thanks in large part to lower prices. Incentives are rising, which are helping vehicle buyers, but only somewhat. The expectation of falling prices coupled with rising uncertainty around interest rate policies may lead some vehicle buyers to wait.”

Steady Full-Year Forecast Amid Growing Uncertainty

With expectations of uncertainty in the second half of 2024, Cox Automotive is holding its full-year new-vehicle sales forecast steady at 15.7 million, a gain of 1.3% from 2023, when sales finished at 15.5 million. This increase is aligned with the slow growth expected in 2024. Fleet sales are forecast to finish the year at 2.9 million, up from 2.8 million in 2023. Full-year retail sales are forecast to increase from 12.8 million in 2024 to 12.7 million in 2023.

“We remain concerned that the second half of the year cannot maintain the growth we’ve seen so far,” said Chesbrough. “Adding to the uncertainty in the market, many consumers likely believe things will be better, or at least more certain, after the November election, which adds to the hesitancy in buying. We still expect 2024 to finish a little better than 2023 – supported by more discounting and better prices, but we will be fighting an uncertain economic outlook.”

GM Remains on Top; Toyota Volume Increases

General Motors is forecast to remain the top automaker in U.S. new-vehicle sales through the first half of 2024. However, GM sales are forecast to drop 0.1% compared to the first half of 2023. Toyota, which continues to operate with very lean new-vehicle supply, will remain No. 2 after delivering a sizable 16.3% first-half year-over-year gain. Ford and Hyundai are on track to remain the No. 3 and No. 4 automakers, respectively.

Notably, Honda Motor Company – combined Honda and Acura brand sales – is forecast to move ahead of Stellantis as the fifth largest automaker by sales. With stronger inventory and popular new models, Honda is expected to post a 10.8% volume increase in the first half, compared to a 16.5% decrease for Stellantis in the same period.

June 2024 U.S. New-Vehicle Sales Forecast

Q2 2024 New-Vehicle Sales Forecast 1

All percentages are based on raw volume, not daily selling rate. There are 26 selling days this June, which is the same as last year and last month.  There were 154 selling days in H1 2023 and H1 2024.

About Cox Automotive Cox Automotive is the world’s largest automotive services and technology provider. Fueled by the largest breadth of first-party data fed by 2.3 billion online interactions a year, Cox Automotive tailors leading solutions for car shoppers, auto manufacturers, dealers, lenders and fleets. The company has 29,000+ employees on five continents and a portfolio of industry-leading brands that include Autotrader®, Kelley Blue Book®, Manheim®, vAuto®, Dealertrack®, NextGear Capital™, CentralDispatch® and FleetNet America®. Cox Automotive is a subsidiary of Cox Enterprises Inc., a privately owned, Atlanta-based company with $22 billion in annual revenue. Visit  coxautoinc.com or connect via  @CoxAutomotive  on X,  CoxAutoInc  on Facebook or  Cox-Automotive-Inc  on LinkedIn.

Media Contacts: Mark Schirmer 734 883 6346 [email protected]

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Cyberattacks Disrupt Car Sales by Dealers in U.S. and Canada

The attacks on a software provider, CDK Global, affect systems that store customer records and automate paperwork and data for sales and service.

By Neal E. Boudette

Thousands of auto dealers across the United States and Canada are suffering disruptions to their operations as a result of cyberattacks on a provider of critical software and data services used in auto retailing.

The provider, CDK Global, said it was targeted in two attacks on Wednesday, prompting the company to shut down its systems to prevent the loss of customer data and to allow testing and other measures to restore its services.

“We are assessing the impact and providing regular updates to our customers,” CDK Global said in a statement. “We remain vigilant in our efforts to reinstate our services and get our dealers back to business as usual as quickly as possible.”

CDK provides services to more than 15,000 retail locations. Its dealer management systems store customer records and automate much of the paperwork and data involved in selling and servicing cars and trucks.

Dealers said the outage had slowed sales and forced them to find alternative methods to produce the titles, contracts, leases, registration cards and other forms that must be delivered to customers, banks and state motor vehicle authorities.

“It is definitely annoying, no doubt,” said Brian Benstock, general manager and vice president of Paragon Honda in the New York borough of Queens. “But we’re still open for business. We’re still selling cars.”

He said his franchise had other systems to retrieve customer data. “We can produce contracts,” he said. “For customers, it’s pretty seamless.”

The disruption has come at a critical time for dealers as they head into the final two weekends of the month, typically a busy time for new-car sales. Many are also preparing for Fourth of July sales and other summer promotions.

Dealers said that in some cases they were reverting to writing contracts by hand, or asking customers to wait a few days to take delivery of their vehicles.

They have less leeway in servicing or repairing vehicles, when customers often expect their cars back within a few hours, but the lack of access to customer data in most cases won’t prevent technicians from performing repair work.

Neal E. Boudette is based in Michigan and has been covering the auto industry for two decades. He joined The New York Times in 2016 after more than 15 years at The Wall Street Journal. More about Neal E. Boudette

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Bark Air, an airline for dogs, faces lawsuit after its maiden voyage

By Megan Cerullo

Edited By Alain Sherter

Updated on: June 7, 2024 / 2:23 PM EDT / CBS News

Local officials in New York have filed a lawsuit against Bark Air, an airline geared to dogs , alleging it violates airport usage restrictions in Westchester County.

The suit alleges that the private terminal at Westchester Airport from which Bark operates its charter flights limits companies to selling seats on aircraft with nine or fewer seats. Larger aircraft must operate out of the airport's commercial terminal. 

Bark indicates on its website that it conveys caninines on Gulfstream G5s, which accommodate 12 to 16 passengers. Bark notes that its planes are designed to fit 15 dogs along with their human companions, but that it never sells more than 10 tickets. 

Westchester filed the suit against Bark and Talon Air, the private charter company that Bark contracted to operate its service. 

Bark, the maker of BarkBox toy and treat subscriptions for pets, announced its flight service in April. It indicated it would initially operate routes between Westchester County and the Los Angeles area as well as internationally to London.

A Bark spokesperson said the company doesn't comment on litigation, but added that "we don't believe this will impact our operations."

Westchester County attorney did not immediately respond to a request for comment.

Bark Air's sold-out maiden voyage departed New York for Los Angeles on May 23. Tickets cost $6,000 for one dog plus a human. Its website indicates that more flights, some of which are sold out, are scheduled to take off later this month.

Megan Cerullo is a New York-based reporter for CBS MoneyWatch covering small business, workplace, health care, consumer spending and personal finance topics. She regularly appears on CBS News 24/7 to discuss her reporting.

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