A severe cyberattack has left CDK Global, a major software provider for U.S. automobile dealerships, offline for three days in a row, dealing a crippling blow to the automotive industry. Managing sales and services, payroll, and inventory are just a few of the many issues that about 15,000 dealers across the country are now facing as a result of the attack.
The disruption, reportedly orchestrated by hackers demanding substantial ransom, has thrust dealerships into chaos, forcing many to resort to archaic methods like spreadsheets and handwritten orders to continue operations. Jeff Ramsey of Ourisman Auto Group lamented potential business losses, fearing customers might seek services elsewhere due to the outage.
CDK Global, acquired by Brookfield Business Partners in 2022, has not disclosed a timeline for system restoration, leaving dealers like Tom Maoli’s New Jersey-based group to manage everything manually. Maoli highlighted critical issues such as the inability to track parts inventory, which disrupts the supply chain and complicates vehicle repairs.
Ford and Lincoln have stepped in to support their dealers with alternative processes, ensuring sales and service operations continue despite the industry-wide outage. However, the overall impact on dealership revenues and customer satisfaction remains to be determined.
The incident highlights the vulnerabilities of industries dependent on digital infrastructure and points to concerns that the automotive supply chain needs a stronger cybersecurity stance.
As the automotive sector waits for CDK Global to get things back to normal, cybersecurity experts are calling for enhanced safeguards against such attacks.
