Experts Warn CDK Cyberattack Outage Could Impact June Car Sales by 100,000 Units
Money | June 30, 2024, 4:34 a.m.
A cyberattack on CDK Global is projected to significantly impact vehicle sales for auto dealerships in June, with an estimated decrease of over 100,000 units compared to the same period last year. This disruption is not due to weak demand but rather the reliance of many dealerships on CDK software for transactions. The outage, caused by a ransom event, has left dealers without full access to their systems for over a week, potentially affecting consumer loan approvals and finalizing transactions. J.D. Power estimates a 7.2% decrease in new vehicle sales for June, with the potential for delayed sales to occur in July once CDK systems are restored. Some dealerships are conducting business manually, while others using alternative software are experiencing an uptick in sales. The impact of this cyberattack highlights the critical role of DMS in auto dealership operations and underscores the importance of cybersecurity in the industry.