CDK Global, a leading software provider for automotive dealerships across North America, is currently experiencing a significant disruption due to a cyberattack accompanied by a ransom demand. The company has notified its clients that full system restoration may not occur until the end of the month, with normal dealership operations not expected to resume until Sunday, June 30th. Media sources report that CDK is actively working to bring critical applications back online and has advised clients to consider alternative measures for their end-of-month financial closing processes.
The impact of this disruption extends deeply into both automotive and truck dealerships, as well as specialized vehicle maintenance garages. The shift back to manual operations, hastily readopted in response to the outage, is severely limiting their ability to process orders, directly affecting sales and service operations.
In an industry where technology is integral to the efficiency of services and sales, this incident highlights the substantial vulnerabilities that dealerships and garages face in the event of IT failures. The criminal group believed to be based in Eastern Europe is demanding a ransom in the tens of millions of dollars. Ongoing negotiations leave the situation unresolved and subject to further developments.
CDK Global, known for its cloud-based management software—a technology that allows data storage and access via the internet rather than through a local computer system—handles vital operations such as vehicle procurement, sales, financing, insurance, and the maintenance and repair of vehicles. The company claims to have a three-tier cybersecurity strategy aimed at preventing, protecting against, and responding to cyber threats. Nevertheless, this breach raises questions about the effectiveness of these security measures and the future challenges in bolstering the defenses of critical infrastructure within this sector.
