A federal judge in Chicago has said that software vendors can bring a joint lawsuit against automotive technology supplier CDK Global in connection with data access restrictions and overcharge estimates of several hundred million of dollars. Several other industry vendors subsequently joined AutoLoop’s 2018 suit against CDK in Illinois when its Chief US District Judge, Rebecca Pallmeyer certified the suit as a class action.

The lawsuit alleges that CDK violated antitrust laws and engaged in conduct that restricted competition. The vendors, led by AutoLoop, want some USD 395 million in damages from CDK, an Austin, Texas-based company that offers software solutions for dealerships to handle sales, financing and automotive service operations. The plaintiff class includes owners and operators of dealer-management system applications for inventory control, repair orders, warranty services, and other functions. As it was described, CDK limited the access to systems of dealers that increased the costs of necessary data for vendors such as AutoLoop for their applications.

By Wednesday, neither CDK, AutoLoop, nor their attorneys had replied to emails and phone calls for an interview. Currently there is no decision made by the court on whether to certify the dealers as a nationwide class.

In preparation for a trial that Judge Pallmeyer has instructed should occur in Wisconsin where the case originated before being consolidated in Illinois, there is no set trial date. Despite that, CDK has never been found to engage in any wrongdoing at any phase of the litigation process.

The class action includes 244 software vendors that have bought data integration services from CDK or its competitor Reynolds &amp; Reynolds since October 2013. Reynolds &amp; Reynolds does not act as a defendant in this case; however, it paid nearly USD 30 million in 2018 to car dealers over similar claims. While this paper was being written, Reynolds &amp; Reynolds had not responded to the following comment requests:

CDK had traced its opposition against the class certification arguing that there was inadequate evidence to show that all the vendors had been affected.

A federal judge in Chicago has said that software vendors can bring a joint lawsuit against automotive technology supplier CDK Global in connection with data access restrictions and overcharge estimates of several hundred million of dollars.

A federal judge in Chicago has said that software vendors can bring a joint lawsuit against automotive technology supplier CDK Global in connection with data access restrictions and overcharge estimates of several hundred million of dollars. Several other industry vendors subsequently joined AutoLoop’s 2018 suit against CDK in Illinois when its Chief US District Judge, Rebecca Pallmeyer certified the suit as a class action. The lawsuit alleges that CDK violated antitrust laws and engaged in conduct that restricted competition. The vendors, led by AutoLoop, want some USD 395 million in damages from CDK, an Austin, Texas-based company that offers software solutions for dealerships to handle sales, financing and automotive service operations. The plaintiff class includes owners and operators of dealer-management system applications for inventory control, repair orders, warranty services, and other functions. As it was described, CDK limited the access to systems of dealers that increased the costs of necessary data for vendors such as AutoLoop for their applications. By Wednesday, neither CDK, AutoLoop, nor their attorneys had replied to emails and phone calls for an interview. Currently there is no decision made by the court on whether to certify the dealers as a nationwide class. In preparation for a trial that Judge Pallmeyer has instructed should occur in Wisconsin where the case originated before being consolidated in Illinois, there is no set trial date. Despite that, CDK has never been found to engage in any wrongdoing at any phase of the litigation process. The class action includes 244 software vendors that have bought data integration services from CDK or its competitor Reynolds & Reynolds since October 2013. Reynolds & Reynolds does not act as a defendant in this case; however, it paid nearly USD 30 million in 2018 to car dealers over similar claims. While this paper was being written, Reynolds & Reynolds had not responded to the following comment requests: CDK had traced its opposition against the class certification arguing that there was inadequate evidence to show that all the vendors had been affected.

Automotive tech company CDK must face antitrust class action, judge says

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.

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

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.

Also read:<a href="https://www.wionews.com/autonews/tesla-remains-a-contender-in-the-ev-market-demand-challenges-737151">&nbsp;Tesla remains a contender in the EV market demand challenges</a>

Impact on auto sales

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)

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.

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. 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 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. Also read: Tesla remains a contender in the EV market demand challenges Impact on auto sales 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)

CDK Global aims to restore car dealership systems after massive outage

U.S. auto dealerships are currently facing significant challenges due to a widespread software outage caused by a cyber attack on CDK, a major technology provider for the automotive retail industry. The outage has affected CDK's dealer management system, which is crucial for various aspects of dealership operations, including completing sales, tracking profitability, and managing employee compensation.

The impact of this outage has been substantial, with over 15,000 retail locations affected. Many dealerships have had to revert to manual paperwork processes to continue their operations. Cliff Steinhauer from The National Cybersecurity Alliance noted that this situation has considerably slowed down the auto retail industry.

According to an intelligence analyst at Recorded Future, a security firm, a hacking group known as BlackSuit is responsible for the cyberattack on CDK. However, CDK has not yet confirmed this information. The company has reported that they have begun the restoration process, but it is expected to take several days to complete.

While Cox Automotive, a market research firm, suggests that the impact may be less severe than initially feared, with most sales likely to recover in July, several large auto dealers have reported disruptions to their operations.&nbsp;

 
AutoNation, a leading U.S. auto retailer, described the outage as disruptive and detrimental to its business, although its outlets remain open and continue to sell, service, and purchase vehicles. Similarly, Lithia Motors has experienced disruptions in its CDK-hosted system in North America and anticipates negative impacts on its business operations until the systems are fully restored.

The outage has created various challenges for dealerships. For instance, Jim Seavitt, owner of Village Ford in Dearborn, Michigan, reported that while sales have not been significantly affected, the delivery process has become more labor-intensive. His dealership sold nearly 100 cars during a recent sale, but the vehicles are in limbo due to the inability to generate the necessary paperwork through CDK's system.

To mitigate the impact, many dealerships, including AutoNation and Group 1 Automotive, have implemented alternative processes such as manual paperwork to conduct their business. They have also taken precautionary measures to protect their data.

The full scope and duration of the outage remain unclear, with some dealerships, like Group 1, uncertain about when CDK applications will be fully restored. Other auto retailers, such as Asbury Automotive and Sonic Automotive, have also reported negative impacts on their operations.

Reports suggest that the hackers responsible for the attack have demanded millions of dollars in ransom to end the hack. Some dealership owners, like Village Ford's Seavitt, hope that CDK will pay the ransom to allow businesses to resume normal operations quickly.

Financial analysts, including those at Citi, have noted potential risks to late-June U.S. auto sales volumes due to these disruptions. For context, total new vehicle retail sales in the United States reached 1.1 million units in June of the previous year, according to data from J.D. Power and GlobalData.

This ongoing situation highlights the vulnerability of the automotive retail industry to cyber threats and the critical role that technology plays in modern dealership operations.&nbsp;&nbsp; &nbsp;

U.S. auto dealerships are currently facing significant challenges due to a widespread software outage caused by a cyber attack on CDK, a major technology provider for the automotive retail industry.

U.S. auto dealerships are currently facing significant challenges due to a widespread software outage caused by a cyber attack on CDK, a major technology provider for the automotive retail industry. The outage has affected CDK's dealer management system, which is crucial for various aspects of dealership operations, including completing sales, tracking profitability, and managing employee compensation. The impact of this outage has been substantial, with over 15,000 retail locations affected. Many dealerships have had to revert to manual paperwork processes to continue their operations. Cliff Steinhauer from The National Cybersecurity Alliance noted that this situation has considerably slowed down the auto retail industry. According to an intelligence analyst at Recorded Future, a security firm, a hacking group known as BlackSuit is responsible for the cyberattack on CDK. However, CDK has not yet confirmed this information. The company has reported that they have begun the restoration process, but it is expected to take several days to complete. While Cox Automotive, a market research firm, suggests that the impact may be less severe than initially feared, with most sales likely to recover in July, several large auto dealers have reported disruptions to their operations. AutoNation, a leading U.S. auto retailer, described the outage as disruptive and detrimental to its business, although its outlets remain open and continue to sell, service, and purchase vehicles. Similarly, Lithia Motors has experienced disruptions in its CDK-hosted system in North America and anticipates negative impacts on its business operations until the systems are fully restored. The outage has created various challenges for dealerships. For instance, Jim Seavitt, owner of Village Ford in Dearborn, Michigan, reported that while sales have not been significantly affected, the delivery process has become more labor-intensive. His dealership sold nearly 100 cars during a recent sale, but the vehicles are in limbo due to the inability to generate the necessary paperwork through CDK's system. To mitigate the impact, many dealerships, including AutoNation and Group 1 Automotive, have implemented alternative processes such as manual paperwork to conduct their business. They have also taken precautionary measures to protect their data. The full scope and duration of the outage remain unclear, with some dealerships, like Group 1, uncertain about when CDK applications will be fully restored. Other auto retailers, such as Asbury Automotive and Sonic Automotive, have also reported negative impacts on their operations. Reports suggest that the hackers responsible for the attack have demanded millions of dollars in ransom to end the hack. Some dealership owners, like Village Ford's Seavitt, hope that CDK will pay the ransom to allow businesses to resume normal operations quickly. Financial analysts, including those at Citi, have noted potential risks to late-June U.S. auto sales volumes due to these disruptions. For context, total new vehicle retail sales in the United States reached 1.1 million units in June of the previous year, according to data from J.D. Power and GlobalData. This ongoing situation highlights the vulnerability of the automotive retail industry to cyber threats and the critical role that technology plays in modern dealership operations.

CDK hack upends US auto industry, sending dealers back to paper forms

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. 
&nbsp;&nbsp; &nbsp; 
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.

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.&nbsp;

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.

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. 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.

CDK cyber outage continues to affect US auto dealers

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Automotive tech company CDK must face antitrust class action, judge says

CDK Global aims to restore car dealership systems after massive outage

CDK hack upends US auto industry, sending dealers back to paper forms

CDK cyber outage continues to affect US auto dealers