Search our blog for articles and insights right here, just type your interest and dive into a world of knowledge.
Popular articles
Cyber Incident Paralyzes Car Dealerships Across the US
Thousands of car dealerships faced significant disruptions on a busy holiday Wednesday due to a cyber incident involving CDK Global, a major software provider for dealerships nationwide. According to a company representative, CDK shut down all systems, conducted extensive testing, and consulted external third-party experts. Though their core product and digital retailing solutions have been restored, other applications are still undergoing testing, with updates forthcoming.
Dealership Operations Severely Affected
The outage, which began around 2 a.m. Eastern time, left dealerships unable to conduct normal business operations. Many were forced to revert to manual methods for simple tasks like oil changes. In Manhattan, a BMW store halted all new business, including appointment scheduling and servicing. When asked about the timeline for resolving the issue, a customer care representative admitted having no idea.
Other dealerships echoed similar struggles. Barbera’s Autoland in Philadelphia reported an inability to access customer records, set appointments, or print repair orders. Employees have been using makeshift solutions all day, according to a receptionist at the store, who described the situation as having "all our hands are tied."
Gradual Restoration and Industry Concerns
Some CDK services began to come back online by Wednesday afternoon, although many functions remained non-operational or not fully functional yet. The vice president of Proton, a cybersecurity firm serving the auto industry, noted that CDK provided minimal information about the outage's cause. Concerned about customer data protection, Mike Stanton, president and CEO of the National Automobile Dealers Association, emphasized the urgency of understanding the incident's nature and scope.
CDK's Role in Dealership Operations
Renowned for offering various dealership services, including online scheduling, electronic signatures, and inter-departmental messaging tools, CDK Global plays a critical role in the automotive industry. The importance of their services was underscored by the recent acquisition agreement in April 2022, when Brookfield Business Partners decided to purchase CDK in a deal valued at $6.4 billion.
