Cyberattack on CDK Global, a major software provider for automobile dealerships, has entered its third consecutive day, causing significant disruptions to car sales across the United States and Canada. CDK Global supplies various software solutions to over 15,000 retail locations, including critical dealer management systems that store customer records and automate paperwork.
Cyberattack Affected Dealerships and Manufacturers
The outage has impacted a broad range of dealerships, including a portion of BMW Group dealers. Major car manufacturers such as Ford, Volkswagen, and Mercedes-Benz have confirmed their dealerships are affected. The National Automobile Dealers Association emphasized that dealers are focused on protecting customer information and understanding the incident’s scope to respond appropriately.
CDK Global’s Response
CDK Global proactively shut down most of its systems following the cyber incident on Wednesday. Despite ongoing efforts to restore services, the company has not provided an estimated resolution time. In a statement, CDK Global assured customers that they are assessing the impact and remain vigilant in reinstating services to return dealers to normal operations as swiftly as possible.
Operational Challenges
The cyberattack has created operational hurdles for dealerships, slowing down sales and forcing them to resort to alternative methods for producing necessary documentation such as titles, contracts, leases, and registration cards. Brian Benstock, general manager and vice president of Paragon Honda in Queens, New York, acknowledged the disruption but assured that business continues, with contracts being produced through alternative systems.
Timing and Customer Impact
The timing of the outage is particularly problematic as it coincides with the final two weekends of the month, typically a busy period for new-car sales. Additionally, many dealerships are preparing for Fourth of July sales and other summer promotions. Some dealerships have reverted to writing contracts by hand or asking customers to wait a few days for vehicle delivery. Although servicing and repair work continues, the lack of access to customer data complicates these processes but does not entirely prevent them.
Background on CDK Global
CDK Global was acquired by Brookfield Business Partners in April 2022 for $6.41 billion, transitioning from a publicly traded entity to a privately held company. The current cyber-attack highlights the vulnerabilities and critical importance of cybersecurity in managing large-scale data and operational systems for the automotive industry.
Future Steps
Dealerships and CDK Global are working closely to mitigate the impact of the outage and restore full functionality. The incident underscores the need for robust cybersecurity measures and contingency plans to handle potential disruptions in the future.
As the situation develops, dealerships are likely to continue facing challenges, but the industry remains resilient, adapting to ensure minimal disruption to customer service and sales operations.
