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With 1 more day until Episode 1000, Kyle is on his way to Syracuse and Paul is joined by Todd Caputo.  Today, we dive into a quick cybersecurity response that saved hundreds of stores from a malware attack, Ford’s $18M legal loss over a dealership sale, and the effect the current administration could have on EV adoption.

Show Notes with links:

• A major cyberattack nearly hit hundreds of dealerships in early March, but Reynolds and Reynolds' Proton cybersecurity division stopped it in its tracks.
  • On March 12, Proton detected malware disguised as an identity verification check, originating from video links provided by LESA Video Solutions.
  • The attack aimed to infiltrate dealership employees' and customers' computers through social engineering.
  • Proton blocked the malware across 1,000 dealerships, stopping it from spreading to 40,000 computers.
  • “Our team quickly identified how to shut it down … and we pushed out tools to block it,” said Brad Holton, VP of Reynolds and founder of Proton.
  • LESA confirmed the issue was resolved by March 15, launching new security measures.
  • Cybersecurity expert Erik Nachbahr called the attack a “textbook example” of threats dealerships face today, emphasizing the need for early detection and rapid response.

• A judge has ruled that Ford improperly used its right of first refusal to block Auto Dealership Partners from acquiring a dealership, ordering the automaker to pay $18 million in damages.
  • The right of first refusal allows automakers to reject a dealership buyer in a sale and substitute their own, sometimes using it to close or purchase the store.
  • Ford used its right of first refusal in 2019 to prevent the sale of a Ford dealership in Benton, Ark., but Circuit Judge Timothy Davis Fox found Ford “engaged in deceit and fraud” by misleading the original buyer about the deal’s approval.
  • Auto Dealership Partners was awarded $16 million in punitive damages and $2 million for financial harm from the altered transaction.

• The Trump administration’s plans to eliminate EV tax credits, weaken pollution rules, and cut charging infrastructure funding could slow EV adoption, increase emissions, and threaten factory investments, according to industry experts. While EVs will continue to grow, the tipping point for mass adoption may be delayed.
  • Analysts say ending federal EV support could reduce EV sales by 40% in 2030 and put factories at risk of closure.
  • President Trump and congressional Republicans aim to cut incentives, halt charging station funding, and block California’s emissions rules.
  • Princeton and Harvard studies estimate 8.3 to 9.9 million fewer EVs on U.S. roads by 2030 if policies are rolled back.
  • “It is clear based on the evidence that there is no inflection point, no significant market growth, without strong policy support.” — Gil Tal, Direc

Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.

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