Around 15,000 Car Dealerships Affected by the CDK Global Outage

Since Wednesday, around 15,000 car dealerships across the U.S. have had to resort back to basics to run their businesses after a system outage at retail software provider CDK Global. The company has said the problem could take several days to fully resolve.

On Saturday, CDK Global announced that it has started restoring its software. The company is widely used by car dealerships that rely on them for managing tasks such as record-keeping of deals and service scheduling.

A CDK spokesperson told CNN, “We anticipate that the process will take several days to complete, and in the interim we are continuing to actively engage with our customers and provide them with alternative ways to conduct business.”

Last Wednesday, the firm closed most of its systems to ensure customer safety following a cyberattack, according to Lisa Finney, a company spokesperson. Even though some systems were up and running again that afternoon, CDK took them offline again later that evening due to another cyberattack, as detailed in a letter sent to customers.

Following the attacks last week, CDK Global told its customers, “We continue to act out of caution, and to protect our customers in response to the cyber incidents that occurred on June 19. In addition to our customer systems, many integration points have been disabled.”

CDK Global is currently probing the shutdown caused by the two cyber events that brought its systems to a standstill. The company has yet to identify the individuals or groups responsible for these attacks.

However, according to Bloomberg, an insider revealed on Friday that a group claiming to be hackers, likely based in Eastern Europe, is insisting on a payout of tens of millions of dollars. The source indicated that CDK Global is considering paying the ransom.

During the ongoing software outage, car manufacturers and dealerships are swiftly implementing temporary solutions to maintain business as usual. On Saturday, CDK Global sent out an automated warning message through its toll-free number, advising dealership staff to stay alert for phishing attempts and take steps to protect sensitive material, like passwords.

In a statement, Mike Stanton, the president and CEO of the National Automobile Dealers Association, said the group “continues seeking information from CDK on the nature and scope of the cyber incident, so dealers are able to respond appropriately.”

He added, “Thousands of franchised new-car dealerships rely on CDK to run their businesses and this outage has impacted dealers’ ability to provide a seamless customer experience and process transactions efficiently.”

As the summer season kicks off, the National Automobile Dealers Association warned that the closure of CDK’s systems could disrupt business operations and lead to delays in dealership activities, including shipping.

Ford, the automobile manufacturer, is collaborating with dealers to establish alternative software systems and implement other solutions. A spokesperson highlighted that the impact of the outage will differ among dealerships. Ford advised customers to reach out to their local dealership for further information.