Chaos in the Automotive Industry as CDK Outage Continues to Disrupt Car Dealers

Money | June 30, 2024, 8:04 a.m.

The ongoing systems outage at software provider CDK Global, caused by a cyberattack, is leading to significant financial losses for car dealerships in the US. The blackout has disrupted customer interactions, orders, and sales tracking, impacting workers' ability to earn a living. Estimates suggest that if the outage continues for three weeks, affected car dealers could suffer direct losses of nearly $944 million. CDK Global has reported progress in bringing some dealerships back online, with plans to resolve the issue by July. Automotive retail workers have expressed concerns about the impact on their livelihoods, with some being unable to work or unsure if they will be paid. The outage highlights how a cyberattack on record-keeping software can cripple an entire industry and threaten job security. Despite challenges, some dealerships are finding alternative ways to manage operations, emphasizing the importance of adapting to unexpected disruptions.