Earlier this week, CDK Global, a company that provides software solutions for auto dealerships, experienced two major cyberattacks. These attacks have had a significant impact on the operations of nearly 15,000 dealerships that rely on CDK’s software suite to manage various aspects of their business.
The software provided by CDK Global is crucial for dealership operations, as it is used by service advisors to write up repair orders, mechanics to record time and make repair notes, and even for employees to clock in. Without access to this software, dealerships are facing major challenges in conducting their day-to-day activities.
A parts and service manager from a Kia dealership, who chose to remain anonymous, shared his experience with Motor1, highlighting the extent of the disruption caused by the cyberattacks. He mentioned that the software outage is affecting every aspect of dealership operations, from technician work to finance activities, making it one of the biggest challenges he has faced in his years in the industry.
The first cyberattack occurred on Tuesday, leading CDK Global to shut down its systems as a precautionary measure. However, a second attack hit on Wednesday, further delaying the restoration of services. As of Friday, CDK’s systems are still down, and it may take a few more days before operations return to normal.
In addition to service-related issues, the manager mentioned that new-vehicle sales are also impacted because the finance team is unable to process paperwork electronically. Some dealerships have resorted to manual processes, such as using old-fashioned forms and handwritten notes, to keep the sales process moving. However, this workaround is not sustainable in the long run, especially when it comes to dealing with loan vendors who require digital documentation.
Dealerships that rely on CDK systems are trying their best to cope with the situation by resorting to manual workarounds. For instance, they are manually recording clock-in times and writing up repair tickets to ensure that essential services can still be provided to customers. However, without access to the software, certain tasks like creating prework orders or looking up vehicle information have become impossible.
The manager mentioned that they initially tried to collect credit card information from customers to process payments once the system is back online, but they have now stopped doing so due to security concerns. While larger repair jobs are still being handled manually, smaller repairs are being postponed until the system is restored.
As of now, there is no information on the source of the cyberattacks or when CDK systems will be back online. Dealerships are facing significant challenges in managing their operations and serving customers effectively during this downtime. The impact of these cyberattacks highlights the vulnerability of the automotive industry to cyber threats and the importance of robust cybersecurity measures to prevent such disruptions in the future.