Illinois, U.S.A.

CDK Global, a leading provider of software for car dealerships, is working to restore its systems after a massive outage that impacted over 15,000 clients following cyberattacks in June. The company anticipates that all dealers will be live on its Dealer Management System (DMS) by late July 3 or early morning on July 4.

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Phased restoration approach

CDK Global is taking a phased approach to the restoration process, rapidly bringing dealers live on the DMS. The company successfully transitioned two small groups and one large publicly traded auto retailer to the live DMS platform last week.

Restored customer care channels

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CDK Global has already restored its customer care channels, allowing dealers to seek help through phone calls, chat support, or by submitting eCases. The company is also actively working on bringing other applications live.

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Impact on auto sales

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The outage forced some U.S. auto dealers to revert to manual paperwork, which is expected to result in slower growth in second-quarter U.S. auto sales. Industry experts, such as Jessica Caldwell, head of insights at Edmunds, have highlighted the impact of these attacks on the automotive industry's recovery.

Targeted dealerships

The cyberattack impacted about half of Volkswagen dealers and around 60% of Audi's dealers in the United States. CDK Global's DMS plays a crucial role in streamlining operations for around 15,000 U.S. auto dealerships, enabling managers to oversee profitability, finalize deals, monitor inventory, and employee compensation.

Cybersecurity concerns

The incident raises concerns about the cybersecurity vulnerabilities faced by the automotive industry. Dealerships have increasingly become targets for cybercriminals, with a CDK report revealing that 17% of surveyed dealerships experienced cyber incidents in the past year.

CDK Global's efforts to restore its systems following the massive outage are crucial for the automotive industry's recovery. The incident highlights the importance of robust cyber defences to safeguard sensitive customer information and ensure the continuity of dealership operations.

(Inputs from Reuters)