A recent cyberattack on CDK Global, a crucial software provider for auto dealers in the United States and Canada, has caused significant disruptions in the operations of thousands of car lots. The attacks targeted the systems that store customer records and automate paperwork and data for sales and services, leading CDK Global to shut down its systems to prevent the loss of customer data and work on restoring its services.
With more than 15,000 retail locations relying on CDK Global’s dealer management systems, dealers have been experiencing delays in sales processes and have had to resort to alternative methods to generate necessary documents such as titles, contracts, leases, and registration cards. Despite these challenges, dealers like Brian Benstock from Paragon Honda in Queens, New York, are finding ways to continue business operations and serve their customers, even if it means writing contracts by hand or asking for a few extra days for vehicle deliveries.
The timing of the cyberattack couldn’t be worse for dealers, as they are entering the final two weekends of the month – a busy period for new car sales. Additionally, with Fourth of July sales and other summer promotions on the horizon, dealers are feeling the pressure to get their systems back online quickly to avoid further disruptions.
While the outage has slowed down sales and forced dealers to find workarounds, technicians are still able to perform repair work as the lack of access to customer data does not hinder their ability to service vehicles. This situation highlights the importance of cybersecurity measures for businesses, especially those in the automotive industry, where customer data and operational efficiency are paramount.
As the automotive industry continues to digitize and rely more on software providers for critical services, the risk of cyberattacks and disruptions will only increase. It is crucial for companies like CDK Global to invest in robust cybersecurity measures to protect customer data and ensure the smooth operation of their systems. In the meantime, dealers are adapting to the challenges posed by the cyberattack, demonstrating resilience and dedication to serving their customers amidst adversity.
