CDK, a leading provider of software to car dealerships, is making progress in resolving the cyber incident that forced it to briefly shut down its systems in June. The company announced that it expects all dealers to be live on its dealer management system (DMS) by late July 3 or early morning on July 4. CDK is following a phased approach to restore its systems and is rapidly bringing dealers back online.
Notably, CDK has already brought two small groups and one large publicly traded group of auto retailers live on DMS as part of its restoration process. While the outage caused disruptions in the industry, with some U.S. auto dealers resorting to manual paperwork, CDK’s efforts aim to minimize the impact on sales.
The cyber attack incident affected a significant portion of Volkswagen and Audi dealerships in the United States. According to Reuters, about half of Volkswagen dealers and approximately 60% of Audi’s dealers were impacted by the attack. This highlights the far-reaching consequences of such incidents on the automotive industry.
The disruptions experienced by dealerships had immediate consequences for the industry’s sales performance in the second quarter. Experts have predicted slower growth in U.S. auto sales during this period as dealers struggled to access crucial software due to the CDK incident. Jessica Caldwell, head of insights at Edmunds, explained that while the impact varied from dealer to dealer, this event represents a significant hurdle on the automotive industry’s path to recovery.
The restoration of CDK’s systems is crucial for the smooth functioning of car dealerships across the country. These systems support more than 15,000 retail locations, making CDK a fundamental technology and software provider for the industry. As customer care channels are being restored and other applications are actively being brought live, CDK aims to minimize any further disruptions faced by dealerships and ultimately support the recovery of the automotive industry.
In conclusion, CDK’s ongoing efforts to restore its dealer management system after the cyber incident have significant implications for the automotive industry. As dealerships return to using crucial software and technology, the industry can begin to recover from the disruptions caused by the CDK incident. However, it is important to remain vigilant against cyber attacks as they continue to pose a threat to the automotive sector.
