CDK Global is pleased to announce that the majority of its nearly 15,000 car dealerships in North America are now back online to its core management system following a cyber incident that caused a software blackout. The outage began on June 19 and affected systems across the continent, causing significant disruptions for auto dealerships that rely on CDK’s software to manage various aspects of their operations, including scheduling and records.
Despite initial challenges in restoring its software, CDK has made progress in bringing other applications back online. The company expects its Customer Relationship Management system to be operational by July 4. If the outage had continued, it could have resulted in significant financial losses for car dealerships. In fact, CDK’s system collapse could have led to about $944 million in direct losses due to business interruptions for affected car dealers if it lasted a full three weeks.
The outage made it difficult for dealers to track customer interactions, orders, and sales, impacting their ability to earn income. For example, Bernard Irvin, a salesperson at a Ford dealership in South Carolina expressed concerns about the outage affecting payroll at his dealership. However, with progress being made in restoring its software, CDK is optimistic that operations can soon return to normal for car dealerships across North America.