CDK Global Faces Major Disruptions as Cyberattacks Hit Auto Dealerships Across North America
ICARO Media Group
Car dealerships across North America have been facing significant disruptions this week as CDK Global, a leading provider of software for auto dealers, was hit by back-to-back cyberattacks on Wednesday. The company, which is based in Hoffman Estates, Illinois, serves over 15,000 retail locations in the United States and Canada.
The cyberattacks have resulted in a widespread outage that continues to impact many of CDK Global's operations as of Friday. Prospective car buyers may experience delays at dealerships or have their vehicle orders written up manually, with no immediate resolution in sight.
The company has taken immediate action to address the situation. CDK Global shut down all systems as a precautionary measure, and spokesperson Lisa Finney has assured that they are actively investigating the cyber incident. By the afternoon on Wednesday, the company had restored its core Dealer Management System (DMS) and Digital Retailing solutions after executing extensive testing and consulting with third-party experts.
However, the respite was short-lived as CDK Global experienced another cyber incident on Wednesday evening. The company remains vigilant in its efforts to reinstate all services and get dealerships back to business as usual. Unfortunately, an estimated time frame for resolution has not been provided, leaving dealers and customers in a state of uncertainty.
CDK Global has implemented measures to protect its customers from potential phishing attempts. The company has warned dealerships about "bad actors" posing as CDK members or affiliates and urged caution when receiving communications claiming to be from the company.
The impact of the CDK Global outage has been felt by several major auto companies, including Stellantis, Ford, and BMW. These companies confirmed that some of their dealers have been affected by the cyberattacks. Despite the disruptions, sales operations continue, albeit with some delays and inconveniences.
Many dealerships have resorted to manual processes to serve customers during this outage. Writing up vehicle orders by hand has become the norm for some, ensuring that sales and service support continue, albeit through alternative routes.
As the investigation into the cyberattacks continues, concerns over customer privacy loom large. Little is known about the nature and scope of the cyber incident, leaving dealerships questioning what information, if any, may have been compromised. Mike Stanton, the president and CEO of the National Automobile Dealers Association, highlighted the commitment of dealers to protect customer information and their eagerness to gather information from CDK Global to respond appropriately.
The situation remains fluid, and CDK Global is working tirelessly to restore services and rectify the cyberattacks. In the meantime, dealerships and customers must adapt to the challenges posed by the outage, as the industry grapples with the aftermath of this unprecedented disruption.