Car dealerships in North America revert to pens and paper after cyberattacks on software provider
Car dealerships across North America are still wrestling with disruptions that started last week
NEW YORK — Car dealerships in North America are still wrestling with major disruptions that started last week with cyberattacks on a company whose software is used widely in the auto retail sales sector.
CDK Global, a company that provides software for thousands of auto dealers in the U.S. and Canada, was hit by back-to-back cyberattacks Wednesday. That led to an outage that has continued to impact operations.
For prospective car buyers, that's meant delays at dealerships or vehicle orders written up by hand. There's no immediate end in sight, but CDK says it expects the restoration process to take “several days” to complete.
On Monday, Group 1 Automotive Inc., a $4 billion automotive retailer, said it is using “alternative processes” to sell cars to its customers. Lithia Motors and AutoNation, two other dealership chains, also disclosed that they implemented workarounds to keep their operations going.
Here is what you need to know.
CDK Global is a major player in the auto sales industry. The company, based just outside of Chicago in Hoffman Estates, Illinois, provides software technology to dealers that helps with day-to-day operations — like facilitating vehicle sales, financing, insurance and repairs.
CDK serves more than 15,000 retail locations across North America, according to the company.
CDK experienced back-to-back cyberattacks on Wednesday. The company shut down all of its systems after the first attack out of an abundance of caution, according to spokesperson Lisa Finney, and then shut down most systems again following the second.
“We have begun the restoration process," Finney said in an update over the weekend
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