CDK Global Restores Software After Cyberattack

Nearly 15,000 dealerships nationwide are back online as CDK Global works to restore other applications in the coming days.


CDK Global said July 2 nearly 15,000 car dealerships across North America are back online to its core management system, following a cyberattack that caused a two-week software blackout.

The outage, which began June 19, resulted from two cyber incidents that crippled CDK Global's systems, essential for managing dealership operations such as scheduling and records.

Effects of the cyberattack were also felt by independent collision repair shops that buy parts from local dealerships, as they were unable to obtain some parts, leaving customers' vehicles in the lurch.

CDK Global reported being ahead of the anticipated recovery schedule. "We are happy to report that we are ahead of the anticipated schedule," an automated message on CDK’s customer care phone line stated.

The potential financial impact of the outage is staggering. According to the Anderson Economic Group, if the outage had extended to three weeks, the resulting business interruptions could have caused direct losses of approximately $944 million for affected car dealers.

CDK Global's swift action to restore its software has been crucial in preventing further economic damage. The company is now actively working to bring additional applications live, with plans to roll out its Customer Relationship Management system by July 4.

The prolonged outage had significant repercussions for auto dealerships, making it challenging for dealers to track customer interactions, orders and sales.

"It's going to affect payroll here," Bernard Irvin, a salesperson at a Ford dealership in Greenville, SC, previously told CNN. "Why wouldn’t I receive my normal pay? I don’t really understand what this is all about."

As operations begin to return to normal, dealerships are hopeful for a swift and complete recovery, mitigating the adverse effects experienced over the past two weeks.

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