This week, car dealerships across North America experienced significant disruptions due to cyberattacks on CDK Global, a key provider of software solutions for auto dealers.
The attacks occurred on Wednesday and resulted in outages that persisted into Friday, affecting the operations of many dealerships. Prospective car buyers are likely to face delays, and dealership staff may need to handle transactions manually until the situation is resolved.
CDK Global, based in Hoffman Estates, Illinois, is crucial in the auto sales industry, offering software for daily dealership operations including sales, financing, insurance, and repairs. The company supports over 15,000 retail locations across North America.
While it is unclear if all these locations were affected by the cyberattacks, the impact has been widespread enough to disrupt many dealerships’ normal operations.
In response to the cyberattacks, CDK Global has taken extensive measures to address the situation. The company shut down all systems as a precaution, conducted extensive testing, and consulted with third-party experts.
By Wednesday afternoon, they had restored their core DMS and Digital Retailing solutions. However, another cyber incident occurred later that evening, leading to continued disruptions.
As of Friday, CDK Global had no estimated time frame for resolution, with their systems expected to be unavailable for several more days. Customer support channels also remain down.
The company warned of “bad actors” attempting phishing attacks by posing as CDK representatives. This has added another layer of complexity to the situation, requiring dealerships and customers to be vigilant against potential fraud.
The impact on major auto companies has been notable. Stellantis, Ford, and BMW have confirmed that some of their dealers were affected, necessitating a switch to manual processes such as writing up orders by hand.
Despite these challenges, dealerships continue to provide sales and service support through alternative methods. Concerns about customer privacy and data security are paramount, with the National Automobile Dealers Association actively seeking information from CDK to understand the extent of the breach and to protect customer information.
