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Auto Dealers Grapple With Ongoing Software Outage

Auto Dealers Grapple with Ongoing Software Outage

System-Wide Disruptions Due to Cyber Attack

Auto dealers in North America have been grappling with a major software outage since Monday due to a cyber attack on CDK Global, a company that provides software and technology solutions to the automotive industry. The outage has led to disruptions in vehicle sales, repairs, and financing operations, with some dealerships resorting to manual paperwork.

Extended Outage Expected

CDK Global has stated that it anticipates the software outage to last for several days while the company works to restore its systems and ensure their stability. This extended outage is causing significant inconvenience and financial losses for auto dealerships, who rely heavily on software for managing their operations.

Previous Acquisition Agreement

Notably, CDK Global agreed to be acquired by investment company Brookfield Business Partners in April 2022 for approximately $8.7 billion in cash. This acquisition, however, has not yet been completed, and it is unclear how the cyber attack may impact the deal's timeline or closing date.

Industry Impact

The ongoing software outage at CDK Global is having a significant impact on the car industry in North America. Dealerships are facing delays in vehicle transactions, reduced efficiency, and potential revenue losses. The outage is also affecting the ability of customers to access their vehicle information and services.

The situation is still developing, and CDK Global is providing updates on its website and through other communication channels as more information becomes available.


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