Friday, July 19, 2024

Cyberattack on CDK Global’s car dealer software causes nearly 2-week restoration delay

CDK Global Cyberattack Impact Continues: Some Car Dealerships Still Struggling

CDK Global, a provider of software services to car dealerships in the U.S., is still grappling with the aftermath of a major cyberattack. The ransomware attack has caused disruptions for over 15,000 dealerships that rely on CDK’s systems for sales, inventory management, and customer relations.

Despite ongoing challenges, CDK announced progress in restoring its systems for all clients. Some dealerships have been brought back online, and efforts are underway to restore additional applications such as Customer Relationship Management and Service solutions. The company has also resumed fielding customer service calls, offering extended hours starting Monday.

Unfortunately, the attack is expected to impact dealerships’ June sales significantly, with a forecast from J.D. Power predicting a drop of over 7% compared to the same period last year. This disruption comes at a crucial time for the auto industry, as June is typically a busy selling season.

Tyson Jominy, a vice president at J.D. Power, commented that while June sales have been affected, transactions delayed by the attack could be completed in July. The ongoing challenges faced by CDK and its dealership clients underscore the far-reaching impact of cyberattacks on businesses and consumers alike.

For more updates on this developing story, stay tuned to CBS MoneyWatch for the latest developments.

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