Many auto dealers in the United States faced challenges as a result of CDK’s software system outage caused by a cyber attack. CDK, a company that provides software solutions to over 15,000 retail locations in North America, was working to restore its systems following the attack.
AutoNation, a prominent auto retailer in the U.S., acknowledged that the outage had disrupted its operations and had a negative impact on its business. Despite the challenges, AutoNation’s outlets remained open for customers, allowing them to continue selling, servicing, and buying vehicles. The company stated that it was still assessing the full extent and impact of the incident as it unfolded.
In response to the cyber attack, both AutoNation and Group 1 Automotive resorted to using alternative processes, such as manual paperwork, to maintain their business operations. Additionally, they emphasized that they had taken necessary precautions to safeguard their data while CDK worked on restoring its systems. However, the timeline for the complete restoration of CDK’s affected applications remained uncertain.
Reports indicated that the hackers responsible for the CDK cyber attack had demanded a significant ransom to halt the ongoing hack. While auto retailers have not disclosed specific details regarding the impact on their sales, analysts have raised concerns about potential repercussions on late-June auto sales volumes due to the disruptions caused by CDK.
Sonic Automotive expressed concerns that the CDK outage could have adverse effects on its business until normal operations were reinstated. Similarly, Penske Automotive took proactive measures by implementing business continuity plans at its Premier Truck Group business to mitigate the impact of the outage.
The cyber attack on CDK’s software systems serves as a reminder of the increasing threats faced by businesses in the digital age. As companies across various industries rely heavily on technology for their day-to-day operations, ensuring robust cybersecurity measures and response plans are in place is crucial to safeguarding against potential cyber threats and minimizing disruptions to business activities. The incident underscores the importance of preparedness and resilience in the face of evolving cyber risks in today’s interconnected world.