Time: 2024-06-21
Hundreds of car dealerships were affected by a cyber incident at CDK Global, a major software provider for dealers in the US, disrupting operations on a busy holiday. The company shut down all systems and is working with external experts to address the issue. The companys core product, a dealer management system, and digital retailing solutions have been restored, with ongoing testing of other applications for full functionality. CDK's systems went down suddenly, causing many dealerships to struggle with everyday tasks like scheduling appointments and accessing customer records. Some dealerships resorted to paper record-keeping to manage services like oil changes.
Following the initial cyber incident, a second attack occurred, causing additional disruptions at US and Canadian auto dealerships. CDK Global shared updates with customers as the company worked to rectify the situation. The outage may last for several days, impacting sales during a crucial weekend for dealerships. The shutdown affected critical computer systems, hindering dealers from managing deals, scheduling services, and communicating with customers effectively. Despite the challenges, some dealerships are finding ways to continue business operations, albeit with manual processes in place to manage customer information securely.
Auto dealers are facing significant challenges in handling customer data privacy amid the cyberattacks. The reliance on CDK Global's software for various dealership operations has presented a major inconvenience for dealers and customers alike. With car-buying season in full swing, the disruptions could potentially drive customers to seek services from dealerships that are not experiencing similar technical issues. Dealers are exploring alternative methods to serve customers and ensure business continuity during this period. The impact extends beyond car sales to parts and service operations, adding further complexity to dealers' daily tasks.
Several automakers have stepped in to assist dealers impacted by the cyber incidents. Companies like Kia, Toyota, and Stellantis have provided support to help dealers navigate the challenges and continue serving customers. Ford has assured customers that despite the industry-wide outage, alternative processes are in place to address sales and service needs. The disruptions have underscored the importance of safeguarding customer data and ensuring business continuity in the face of cyber threats. Despite the setbacks, dealers are resilient in their efforts to maintain operations and support customers during this challenging period.
Business
