In a significant disruption to the automotive retail sector, car dealerships across North America have been forced to revert to manual processes following a series of cyberattacks on CDK Global, a major software provider. The attacks, which began on June 19, have crippled the digital systems that many dealerships rely on for daily operations, including sales, service, and inventory management.
CDK Global, headquartered in Hoffman Estates, Illinois, serves over 15,000 dealerships in the U.S. and Canada. The company proactively shut down its systems to protect sensitive customer data, leading to widespread operational challenges. Dealerships have had to adapt quickly, using pen and paper to continue transactions and maintain service operations.
The cyberattacks have caused significant delays and inconveniences for both dealerships and customers. Many dealerships have reported that while they can still process sales and service orders, the manual methods are time-consuming and less efficient. For instance, a dealership in Florida likened the situation to operating during a power outage, emphasizing the resilience and adaptability required to maintain business continuity.
Despite the challenges, some dealerships have managed to maintain a semblance of normalcy. A dealership in San Antonio, Texas, reported that their service operations continued relatively smoothly, with staff manually logging repair orders and sourcing parts online. This adaptability highlights the industry’s ability to pivot and find solutions even in the face of significant technological disruptions.
CDK Global is actively working with third-party experts to investigate the cyber incidents and restore its systems. The company has warned its customers to be vigilant against potential phishing attempts by bad actors posing as CDK representatives. While the full impact of the cyberattacks is still being assessed, the incident underscores the vulnerability of digital systems and the importance of robust cybersecurity measures in the automotive industry.
As dealerships await the restoration of CDK’s systems, the industry is reminded of the critical balance between technological advancement and the need for reliable contingency plans. The ongoing situation serves as a stark reminder of the potential risks associated with digital dependence and the necessity for preparedness in an increasingly digital world.
