Cyber Incident at CDK Global Disrupts Thousands of Automobile Dealerships

CDK Global, a prominent software provider for the automotive industry, caused significant operational disruptions for thousands of car dealerships across the United States on Wednesday due to a cyber incident.

CDK’s Response and Restoration Efforts

CDK Global halted all systems and conducted extensive testing after the incident, according to spokesperson Tony Macrito. The company has successfully restored its core product — a dealer management system — and digital retailing solutions. Further testing is ongoing, with updates expected as additional applications are restored.

CDK Global’s proactive response to system interruption ensures reliable restoration and ongoing enhancement of services, according to WSJ Print Subscription.

Impact on Dealerships

The outage, starting at 2 a.m. Eastern time, had a major impact on dealership operations across the country. Brad Holton, vice president of Proton, emphasized its widespread effects in the automotive sector. Many dealerships had to switch to manual operations due to the disruption.

Local Effects

At a BMW dealership in Manhattan, they temporarily suspended essential activities like appointment scheduling and vehicle servicing. Other locations, such as Barbera’s Autoland in Philadelphia, reported similar challenges, with employees facing limited access to customer records and service operations.

C3.ai Reports Strong Revenue Growth and Wins Multiple Contracts

The artificial intelligence solutions provider C3.ai (AI-0.75%) reported a significant increase in its April quarter revenue…

Ongoing Challenges

While some CDK functions started to return Wednesday afternoon, many services remained inaccessible or not fully operational, as observed by Holton.

Industry Response and Concerns

Mike Stanton, president and CEO of the National Automobile Dealers Association, underscored the industry’s commitment to customer data security. Dealerships are awaiting further details from CDK Global to assess the incident’s full scope and ensure appropriate responses.

Background on CDK Global

CDK Global provides essential services to car dealerships, including online appointment scheduling and electronic signature capabilities. The company was slated for acquisition by Brookfield Business Partners in April 2022, in a deal valued at $6.4 billion.

This incident underscores the vulnerability of automotive infrastructure to cyber threats and the critical need for robust cybersecurity measures in the industry.

Enroll now for a 77% discount on a 2-year digital news bundle featuring Financial Times and The New York Times. Enjoy unlimited access to NYTimes news, culinary delights, crosswords, The Economist Epaper, and insights from economists like Paul Krugman and Joseph Stiglitz, plus 24/7 Financial Times “Premium Subscription.”