In a significant disruption to the U.S. automotive industry, CDK Global, a leading provider of dealer management software, is grappling with the aftermath of a cyber attack that has rendered its systems inoperable. This outage, which has persisted for over a week, has forced auto dealers across the nation to revert to manual paperwork, impacting operations and financial processes.
Over 15,000 retail locations in the United States, including dealerships of major automakers like Volkswagen, Audi, Honda, Toyota, and Hyundai, rely on CDK Global’s dealer management software as a critical tool. The outage has particularly hit around half of Volkswagen dealers and approximately 60% of Audi dealers, according to sources familiar with the matter.
The company’s internal memo, seen by Reuters, indicated that CDK does not expect to restore its systems before the end of the month. This has prompted CDK to advise dealers to devise alternate plans for their month-end financial closing processes.
The disruption has left many dealers scrambling to maintain business continuity. Dealers accustomed to digital tools for inventory management, sales processing, and customer relationship management have had to switch to manual processes, which are slower and prone to errors. This shift is not only inconvenient but also increases the workload on dealership staff, potentially affecting customer satisfaction and sales performance.
Automakers have been closely monitoring the situation. Honda, for example, has instructed its affected dealers to use alternative tools and processes to continue their operations. Toyota and Hyundai are also assessing the impact and exploring interim solutions to support their dealers.
CDK Global has yet to provide a public comment on the specifics of the cyber attack or the expected timeline for full restoration of services. The company’s silence has added to the uncertainty and frustration among dealers who rely heavily on CDK’s software for their daily operations.
The situation underscores the vulnerabilities within the automotive industry’s reliance on centralised digital systems. As cyber threats become increasingly sophisticated, the need for robust cybersecurity measures and contingency planning ismore critical than ever.
The ongoing outage at CDK Global highlights several key issues for the automotive industry:
The automotive industry must manage the immediate fallout and consider long-term strategies to mitigate such risks in the future while CDK Global works to resolve the outage. For now, dealers must navigate the challenges of operating without their primary management software, relying on manual processes to keep their businesses running.
