A cyberattack on CDK Global, a software provider used by thousands of car dealers and service centers, has caused major disruptions in the automotive industry. CDK Global offers a dealer management system that helps dealers with transactions, financing, parts tracking, and customer relations. The attack has led to system outages, forcing dealerships to resort to manual processes and causing delays in car purchases and service.
The cyber incident has affected both dealers and customers, with new car purchases being delayed and cars stuck in service departments. Larger dealership groups like AutoNation and Lithia Motors are working around the issue using manual processes, but the impact on their business operations remains uncertain. Dealerships are considering alternative software providers like SAP, Reynolds and Reynolds, and Dominion Enterprises due to trust issues with CDK Global.
Consumers may remember the poor car-buying experiences caused by the cyberattack and choose to take their business elsewhere. Dealerships are facing challenges in calculating leases by hand and may have to halt offering them completely. The outage comes at a critical time for dealers, as they aim to hit their sales goals at the end of the month and quarter.
As the automotive industry grapples with the aftermath of the cyberattack, dealerships and customers are hoping for a swift resolution to minimize the impact on their business and buying experiences. The situation highlights the importance of cybersecurity in an increasingly digital world and the need for proactive measures to prevent future attacks. Stay tuned for updates on how the industry responds to this crisis and the implications for dealers and customers alike.