Car Dealerships Nationwide Reportedly Froze After Cyberattack

From 100PercentFedUp - READ ORIGINAL

Some media, including videos, may only be available to view at the original.  

Share this:

A cyber attack on CDK Global has paralyzed car dealerships nationwide who use the company’s software to operate their businesses.

The cyberattack reportedly froze 15,000 car dealerships across the country.


“We cannot process paperwork. Everything is frozen, everything is tied up — we cannot move money back and forth to pay off cars, to finance our customers’ transactions,” Tom Maioli, who owns Celebrity Motor Car Company, which operates five luxury car dealerships across New York and New Jersey, told CBS MoneyWatch, according to CBS News.


CBS News reports:

For one family in New Jersey, the outage meant they couldn’t drive away with their new Audi Q5. Daniel Lanni told Bloomberg his family was expecting the vehicle to be delivered on June 19, but that it now remains unclear when they’ll take possession.

“The kids were really excited,” Lanni, a 41-year-old commercial real estate broker, told Bloomberg. “They’re upset and now they’re just regularly asking about it.”

On Wednesday, CDK Global took down its services as a precaution, effectively bringing sales to a halt for its customers. A second cyberattack this week has compounded the problem.

CDK has indicated that the outage could last several days and has not publicly announced when it expects its services to be fully restored. The financial repercussions of the tech failure are expected to be substantial given that CDK powers sales for roughly half of the car dealerships in the U.S.

According to Reuters, a group of hackers claiming responsibility for the cyberattack “has demanded millions of dollars in ransom to put an end to the hack.”

“The group behind the attack is believed to be based in eastern Europe, according to the report, which cited people familiar with the matter,” Reuters stated.

Per Reuters:

The auto retail technology and software provider planned to pay the ransom, Bloomberg News reported.

CDK, which provides software to car dealerships, did not immediately respond to a Reuters request for comment.

U.S. auto retailers Sonic Automotive (SAH.N), and Penske Automotive (PAG.N), flagged a hit to their operations on Friday, as CDK experienced a third consecutive day of outage.

In an emailed statement, Ford said that there was an industrywide system outage for dealers who use CDK.

“However, many Ford and Lincoln customers are able to receive sales and service support due to alternative processes available to our dealers,” Ford said.

Sonic said its dealerships were open and it was working to minimize the disruption. The company said it was unable to determine if the outage would affect its financial condition, but that it did have a “negative impact” on its operations.

Penske said its Premier Truck Group business, which sells new and used commercial trucks, also uses CDK’s disrupted dealer management system.

Notify of

Inline Feedbacks
View all comments