Cyberattacks Disrupt North American Car Dealerships Following CDK Global Incident

Car dealerships in North America are facing significant disruptions following cyberattacks targeting CDK Global, a key software provider in the auto sales sector. Last week, CDK Global, based near Chicago in Hoffman Estates, Illinois, experienced consecutive cyberattacks leading to widespread outages affecting operations at over 15,000 retail locations across the U.S. and Canada.

The series of cyber incidents at CDK Global prompted a complete shutdown of its systems as a precautionary measure. The company, led by spokesperson Lisa Finney, initiated an investigation with third-party experts and law enforcement to address the ongoing cyber incidents. While the restoration process is underway, CDK Global anticipates that it may take several days to fully recover functionality.

Major automotive retailers like Stellantis, Ford, and BMW have confirmed the impact of the CDK outage on some of their dealerships, leading to delays and disruptions in sales operations. Many dealerships have resorted to manual processes such as handwritten orders to serve customers amid the technical challenges.

Group 1 Automotive Inc., a prominent automotive retailer with operations in the U.S. and the UK, disclosed that its U.S. operations reliant on CDK’s systems were significantly disrupted by the cyber incidents. The company has implemented alternative processes to maintain business operations until CDK’s systems are fully restored.

Concerns over customer privacy have escalated following the cyberattacks, with uncertainties surrounding potential data breaches. Cybersecurity experts emphasize the importance of monitoring credit and staying vigilant against phishing attempts for individuals connected to CDK or its affiliated dealerships.

The National Automobile Dealers Association, under the leadership of President and CEO Mike Stanton, is closely monitoring the situation to ensure appropriate responses are taken to safeguard customer information and address the fallout from the cyber incidents. As the automotive industry navigates through the aftermath of the CDK Global cyberattacks, dealerships are working diligently to mitigate the impact on both operations and customer data.

Grantham-Philips, a prominent business reporter covering trending news for The Associated Press, reports on the unfolding developments from New York.