Automotive
CDK cyberattack cripples auto dealerships, slows sales
Written by Laura Miller
June 25, 2024
A cyberattack on CDK Global has shut down the systems at automotive dealerships and slowed down sales across the US.
CDK provides data and technology to the automotive, heavy truck, and heavy equipment industries. Its integrated software platforms are used at dealerships for all parts of the business, including sales, financing, parts supply, repair, and maintenance.
The company was hit with a series of cyberattacks from an unknown source beginning on Wednesday, June 19. The attacks crippled its software systems at some 15,000 dealerships, according to reports.
The dealerships have been forced to use alternative measures to keep business going, including reverting to the old ‘pen and paper.’ This has slowed down business and sales considerably.
According to an Automotive News report, CDK told dealerships the outages would likely last through at least the end of the month.
As one Reddit user who works in the parts department at a US dealership explained, “CDK Global is the brains of a car dealership. Literally everything we do is controlled by this software.” According to him, “The CDK outage is a lot bigger than people realize.”
Laura Miller
Read more from Laura MillerLatest in Automotive
North American auto assemblies up again in March
After a hard drop in December — the worst since July 2021 — assembly numbers have climbed three months in a row. Sentiment remains tempered, though.
Volvo plans to lay off up to 800 workers at US truck plants
The company cited uncertainty about freight rates and demand, regulatory changes and the impact of tariffs.
Tariff fallout: Canada strikes back, Stellantis idles, GM boosts production
Canada imposes auto tariffs, while automaker Stellantis temporarily idles some plants.
Price on Trade: Auto tariffs, auto parts, and Hyundai – a world of rapid changes
Trump's new auto tariffs will apply to passenger vehicles (including sedans, sport utility vehicles, crossover utility vehicles, minivans, and cargo vans), light trucks, and certain automobile parts (including engines and engine parts, transmissions and powertrain parts, and electrical components).
US chassis makers seek duties on imports from Mexico, Thailand, and Vietnam
Upon the request of US chassis manufacturers, the Commerce Department this week initiated investigations into the alleged dumping and subsidization of chassis imported from Mexico, Thailand, and Vietnam.