Cybersecurity Measures Critical for Car Dealerships After CDK Global Outage

CDK Global, a leading provider of technology solutions for the automotive industry, announced that its systems are back online after a cyber incident caused a software blackout that affected nearly 15,000 car dealerships in North America. The outage began on June 19 and lasted for days, making it difficult for dealers to manage various aspects of their operations.

The company stated that it is actively working to bring other applications back online and expects the Customer Relationship Management system to be operational by July 4. If the outage had continued, it could have resulted in significant financial losses for car dealerships. CDK’s system collapse could have led to about $944 million in direct losses due to business interruptions for affected car dealers if it lasted a full three weeks.

Despite CDK’s efforts to restore its software, car buyers and dealers were still at a standstill for days. The outage made it difficult for dealers to track customer interactions, orders, and sales, impacting their ability to earn income. For example, Bernard Irvin, a salesperson at a Ford dealership in South Carolina expressed concerns about the outage affecting payroll at his dealership.

However, the progress made by CDK in restoring its software is an encouraging sign that operations can soon return to normal for car dealerships across North America. This incident serves as a reminder of the importance of having robust cybersecurity measures in place to prevent such incidents from occurring in the future.