Good morning, it’s Friday, June 21, 2024, and here are the latest updates on the cyberattack that has disrupted car dealerships operations in the U.S. Let’s dive into what happened and how the industry is responding.
This week, America’s car dealerships were hit by a massive cyberattack that targeted CDK Global, a computer services provider. As a result, dealerships across the U.S. and Canada have been facing challenges for the past two days. The attack, which occurred on Wednesday, June 19, forced dealers to resort to using pen and paper for all administrative tasks, impacting their ability to sell and repair cars for customers. CDK Global provides software to nearly 15,000 dealers to manage sales, payroll, and office operations.
In response to the attack, dealerships have been actively seeking information from CDK to understand the scope of the incident and how to address it. The fallout from the cyber incident is expected to last for several days as CDK works to resolve the issue and restore services. Amidst the chaos, questions have been raised about the cybersecurity measures in place at the computer provider, highlighting the need for a continued focus on cybersecurity in the automotive industry.
Meanwhile, Ford is facing its own challenges as it grapples with quality issues that have led to numerous recalls in recent years. The automaker has announced that it will take a hit on its profits in order to address these issues, implementing additional quality checks on newly redesigned models to reduce warranty costs in the long run. This proactive approach may result in a temporary revenue dip for Ford, but the company is optimistic about the benefits it will bring in terms of improved product quality.
On the topic of quality control, Toyota has issued a stop-sale order on two of its models, the Toyota Grand Highlander and the Lexus TX, due to issues with the side airbags. The recall affects approximately 145,000 vehicles sold in the U.S., prompting Toyota to temporarily halt production of the affected crossovers until a remedy is determined. Customers who believe their vehicles may be impacted by the recall can use the NHTSA app or website to check their VIN for more information.
In other news, American Airlines is facing contract negotiations with its flight attendants, with talks reaching a standstill this week. The union representing American Airlines flight attendants has indicated that strike action may be on the horizon if a favorable agreement is not reached. While the airline remains committed to negotiating with the union, the possibility of strike action looms as negotiations continue.
As the automotive industry grapples with cyberattacks, quality issues, and labor disputes, it’s clear that challenges persist across the sector. Stay tuned for more updates on how these issues unfold and impact the industry in the coming days.