Car dealerships in North America are currently facing significant disruptions due to cyberattacks on a software company widely used in the auto retail sales sector.
Last week, CDK Global, a software provider for thousands of auto dealers in the U.S. and Canada, was targeted by consecutive cyberattacks, resulting in an ongoing outage that is impacting operations.
As a result, prospective car buyers may experience delays at dealerships or have vehicle orders processed manually. CDK has indicated that it will take “several days” to complete the restoration process.
Despite the challenges, Group 1 Automotive Inc., Lithia Motors, and AutoNation, among other dealership chains, have implemented alternative processes to continue serving customers.
What is CDK Global?
CDK Global is a key player in the auto sales industry, providing software technology to dealers for day-to-day operations such as vehicle sales, financing, insurance, and repairs. The company serves over 15,000 retail locations across North America.
What happened last week?
CDK experienced cyberattacks that led to a system shutdown for investigation and restoration. The company is working with third-party experts and law enforcement to address the incident, which is expected to take several days to resolve.
Are impacted dealerships still selling cars?
Several major auto companies have reported impacts from the CDK outage but continue to conduct sales operations using manual processes or alternative methods. Dealers are prioritizing customer service and finding ways to minimize disruptions.
Dealerships owned by Group 1 Automotive Inc. in the U.S. are using alternative processes until CDK’s systems are restored. Other dealership chains are also taking steps to protect their systems and data in response to the cyberattacks.
As the situation unfolds, consumers connected to CDK are advised to monitor their credit and remain cautious of phishing attempts due to potential data breaches. Cybersecurity experts recommend taking proactive measures to safeguard personal information.
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