Car Dealerships in Crisis: Second Cyberattack Hits Industry during Peak Buying Season

Money | June 21, 2024, 12:44 a.m.

Auto retailers across the U.S. are facing major disruptions due to a cyberattack at CDK Global, a software provider used by thousands of dealers. CDK informed customers of the incident, causing a shutdown of most systems with no estimated resolution timeframe, leaving dealers without access to crucial functions like transactions and customer records. The outage also impacted Canadian dealerships, forcing them to resort to pen and paper for deals. Publicly listed dealership groups like AutoNation Inc. saw their shares decline following the attack. Dealers utilizing CDK competitors also experienced disruptions. While some dealers adapted by handling tasks on paper, others faced challenges in completing transactions. CDK has not provided a timeline for system restoration, leaving dealers uncertain about the future impact of the incident. The National Automobile Dealers Association is actively seeking information about the cyberattack from CDK.