CDK’s software system recently came under attack, affecting its clients and the way that they operate in the interim. This private company supplies digital management and marketing solutions to automotive dealers.
CDK Cyber-Attack Hobbles Auto Dealers Across North America
Over 15,000 auto dealers across North America use the CDK software, and several were impacted by the hack. Among them is AutoNation, Inc. (AN), a US-based automotive retailer, which indicated that the breach and system downtime affected its business. Despite the disruption, the trader continued to sell, service and buy vehicles. Reuters quoted the company, which commented:
As the incident is ongoing, the full scope, nature and impact of the incident is not yet known.
To conduct operations, this company and others, such as Group 1 Automotive Inc. (GPI), turned to paper routes and manual processing. These two companies confirmed that they implemented measures to protect their digital information. According to Reuters, Group 1 said:
The timing of the restoration of other impacted CDK applications remains unclear at this time.
On Friday 21 June 2024, a group of hackers claimed responsibility for the cyber-attack and, based on a Bloomberg report, demanded millions to cease the breach.
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To date, automotive dealers have not confirmed direct sales impacts. Citigroup Inc. (C) analysts pointed out that there is “some potential risk to late-June (US auto sales) volume from the reported CDK dealer disruptions”.
Dealerships are putting risk management measures, such as business continuity plans, in place to counter the negative effects. This disruption will likely keep on affecting smooth operations until CDK system restoration.
