Cyberattack on CDK Global Disrupts Dealership Operations Across North America

CDK Global, a leading provider of dealership management systems (DMS) in the automotive industry, has been hit by a significant cyberattack, forcing the company to shut down its systems in the U.S. and Canada. The attack, which began on June 19, has left many dealerships unable to access critical management tools, causing widespread disruption during a crucial period for auto sales.

Impact on Dealership Operations –

In a message to its customers, CDK Global acknowledged the severity of the incident: “If you are not aware, we experienced an additional cyber incident late in the evening on June 19. We continue to act out of caution, and to protect our customers, we have taken down most of our systems. Do not attempt to access the DMS until we can confirm the system is secure. Digital Retail and CDK phones continue to be functional. At this time, we do not have an estimated time frame for resolution, and therefore our dealers’ systems will not be available likely for several days.”

This shutdown marks the second consecutive day that CDK’s systems have been offline due to cyber incidents. The prolonged downtime is expected to severely impact thousands of new-vehicle transactions daily across North America, a critical blow during summer sales promotions when dealerships strive to move inventory and meet sales targets.

Broader Implications for the Industry –

The cyberattack on CDK Global has raised significant concerns about the security of DMS platforms, which are essential for the daily operations of automotive dealerships. These systems handle everything from inventory management to customer relationship management, and any disruption can lead to substantial financial losses and operational challenges.

This incident is part of a broader trend of cyberattacks targeting critical infrastructure across various industries. In recent months, similar attacks have disrupted operations at casinos, financial institutions, and hospitals, highlighting the growing threat of cybercrime.

CDK Global’s Response and Future Steps –

CDK Global has taken extensive measures to protect its systems and customers in response to the attack. The company emphasized that its Digital Retail and phone systems remain operational, but the primary DMS platform will remain offline until security can be assured.

A spokesperson for CDK Global noted the company’s commitment to resolving the issue swiftly and securely: “We are working around the clock to address this situation and ensure that our systems are secure. Our priority is the safety and functionality of our services for our customers.”

Looking Ahead –

The disruption caused by the cyberattack on CDK Global underscores the critical need for robust cybersecurity measures in the automotive industry. As dealerships increasingly rely on digital tools and platforms, protecting these systems from cyber threats becomes paramount.

Dealerships affected by the shutdown are advised to remain patient and follow CDK’s guidance, refraining from attempting to access the DMS until further notice. The incident serves as a stark reminder of the vulnerabilities in modern automotive operations and the importance of preparedness against cyber threats.

For further updates, dealers and stakeholders are encouraged to stay in touch with CDK Global and monitor company communications. As the industry navigates this challenge, the focus will be on restoring normal operations and reinforcing security protocols to prevent future incidents.

Source: Automotive News