News Report:
Retail software provider CDK Global is facing a major setback as its software remains offline, affecting nearly 15,000 car dealerships across North America. The company has stated that it will likely take several days for their systems to be restored and fully operational.
The software outage has disrupted dealership operations, impacting everything from scheduling to records management. CDK has begun the process of restoring its software but anticipates that it will be a gradual process. In the meantime, the company is working with its customers to provide alternative ways to conduct business.
CDK is working to investigate the cyber incidents that led to the system shutdown but has not confirmed the identity of the perpetrators. Reports have surfaced of an Eastern European-based hacker group demanding a ransom to end the outage, but CDK has not commented on this.
Car manufacturers and dealerships are scrambling to implement temporary solutions to maintain their retail operations during the outage. CDK has advised dealership employees to be cautious of phishing scams and to secure sensitive information.
Mike Stanton, the president and CEO of the National Automobile Dealers Association, expressed concern over the impact of the outage on dealers’ ability to provide a seamless customer experience. The system shutdown could lead to business slowdowns and shipping delays as the summer season approaches.
Car manufacturer Ford is working with dealers to set up alternative software systems to mitigate the effects of the outage. Several dealerships on the East Coast are manually processing sales forms and facing challenges with vehicle registrations due to the lack of access to CDK’s software.
Other companies, such as Penske Automotive and Sonic Automotive, are also working on response plans to minimize the disruption caused by the CDK outage. While Penske’s auto dealers do not use CDK Global, its Premier Trucking Group division relies on CDK’s systems. Sonic Automotive acknowledged that the incident will likely have a negative impact on its financial and business operations.
As dealerships continue to navigate the challenges posed by the software outage, the industry is grappling with the implications of the ongoing disruption.
