Ongoing Software Outage Raises Concerns

CDK Global Cyber Attack Impacts Auto Dealerships

Ongoing Software Outage Raises Concerns

CDK Global, a leading provider of retail software to the automotive industry, is experiencing an ongoing software outage caused by a cyber attack. The outage has disrupted operations at dealerships across the country, with some resorting to manual paperwork to process sales and service.

Industry Impact

CDK Global provides software and services to over 15,000 retail dealerships, including major automotive manufacturers like General Motors and Toyota. The outage has disrupted the ability of dealerships to manage customer records, automate processes, and process transactions. Many dealerships have been forced to close or severely limit operations, resulting in lost sales and inconvenience for customers.

The attack is also raising concerns about the security of customer data stored by CDK Global. The company says it is working with cybersecurity experts to investigate the attack and minimize the impact on dealerships and their customers.

Financial Implications

The outage is expected to have a significant financial impact on both CDK Global and its dealership customers. The company reported revenue of $2.8 billion in 2021, and the outage could result in substantial losses. Dealerships are also facing lost sales and increased expenses as they transition to manual processes.

Long-Term Impact

The long-term impact of the attack on CDK Global and the automotive industry remains to be seen. However, the outage is a reminder of the importance of cybersecurity in today's digital world. It also highlights the need for businesses to have robust backup plans in place to mitigate the impact of such attacks.

CDK Global has stated that it is committed to resolving the outage as quickly as possible and providing updates to its customers. The company's stock price has fallen by over 10% since the attack was disclosed.