CDK cyber outage continues to affect US auto dealers
Representative image for cyber attack
A significant cyber outage affecting CDK Global, a major provider of retail technology and software for automobile dealerships, has extended into its second day, causing widespread disruptions across the United States and Canada.
The incident, which began on Wednesday, has forced CDK to proactively shut down most of its systems as a precautionary measure. The company is actively working to restore its services and normalise operations for affected dealerships, though the process may take several days according to communications sent to some dealers.
The scale of the outage is substantial, with CDK serving over 15,000 retail locations across North America. While the exact number of affected dealerships has not been disclosed, the impact is being felt by various automotive brands. For instance, BMW North America confirmed that a portion of its dealer network has been affected by the outage.
This incident highlights the critical role that software providers like CDK play in the modern automotive retail landscape. Dealerships rely heavily on these systems for various aspects of their operations, from inventory management to customer relationship management and financial transactions.
The National Automobile Dealers Association (NADA) has emphasised that dealers are committed to protecting customer information and are actively seeking details from CDK about the nature and scope of the cyber incident to respond appropriately.
The outage has also affected some dealerships' communication systems. For example, Holman, a privately owned vehicle dealer, reported that its phone system has been impacted by the CDK outage.
CDK Global, which was acquired by investment firm Brookfield Business Partners in April 2022 for USD 6.41 billion, was the last major publicly traded provider of software to auto dealers and manufacturers before going private. This acquisition underscores the significant value and importance of automotive retail technology providers in the industry.
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As the situation continues to unfold, dealerships, manufacturers, and customers alike are awaiting further updates and a resolution to this significant disruption in the automotive retail sector.