Cyber attack on auto dealership software impacts car sales across Colorado

CBS Colorado

3 Jul 202402:36

Summary

TLDRA cyber attack on CDK Global, the software backbone for 15,000 auto dealerships nationwide, disrupted the industry, forcing many to revert to manual processing. Despite the setback, dealerships banded together, fostering unexpected camaraderie. The software is now back online, but a backlog of work and ongoing investigation into potential customer data breaches remain. The industry is expected to bounce back, with next month predicted to be busy.

Takeaways

🚨 A cyber attack on CDK Global, a software provider for 15,000 auto dealerships, caused significant disruption in the industry.
📋 Many dealerships had to revert to manual processing of transactions using paper and pen during the software outage.
🤝 The crisis led to an unusual collaboration among competitors, with dealerships banding together to navigate the situation.
🔄 Despite the attack, the industry quickly adapted and is expected to recover, with sales expected to pick up next month.
🛠 The incident highlighted the importance of the software as the backbone of dealers' technology platforms.
🏢 Auto dealerships faced operational challenges, with some being completely incapacitated during the software downtime.
👥 The auto dealership community demonstrated camaraderie and support during the crisis, turning rivals into friends temporarily.
🗓️ There is a significant cleanup and catch-up process that dealerships need to undertake now that the software is back online.
🕵️‍♂️ An ongoing investigation is looking into whether customer data was compromised during the hack.
📈 The impact on sales is considered a temporary setback, with the industry expected to bounce back strongly.
📢 The Colorado Auto Dealers Association believes that the burden of the breach should remain internal and back-office, minimizing customer impact.

Q & A

What was the primary issue faced by auto dealerships in the past couple of weeks?
-A cyber attack on CDK Global, which provides software for 15,000 auto dealerships nationwide, crippled the industry, affecting the processing of transactions and other operations.
How did the dealerships cope with the software outage?
-Many dealerships had to revert to the old way of processing transactions, using paper and pen, which resulted in a messy and inefficient system.
What unexpected outcome arose from the crisis in the dealership industry?
-An unusual sense of camaraderie developed among dealerships, which are typically known for their cutthroat competition, as they banded together to navigate the crisis.
What is the role of CDK Global in the auto dealership industry?
-CDK Global provides essential software that serves as the backbone of the dealers' technology platform, enabling smooth operations and transactions.
How did the crisis affect the relationships between dealerships?
-The crisis led to a shift from competition to cooperation, with dealers who were previously rivals becoming friends and helping each other adapt to the situation.
What was the immediate aftermath of the software outage for the dealerships?
-Once the software was back online, dealerships had to do a lot of catch-up work to process the backlog of transactions that had accumulated during the outage.
What is the view of Matthew Grubbs from the Colorado Auto Dealers Association on the impact of the breach?
-Grubbs believes that the dealerships adapted well to meet customer needs, and that most of the burden of the breach should be internal and back office, with minimal impact on customers.
Is there an ongoing investigation regarding the breach?
-Yes, there is an ongoing investigation to determine whether or not customer data was breached during the hack over the past couple of weeks.
What is the expected impact on sales due to the software outage?
-While there may have been some initial slowdown in sales, it is expected to be a minor bump in the road, with the next month predicted to be very busy as the industry recovers.
How did the dealerships manage the situation in terms of customer service?
-The dealerships had to be patient and ensure that customer needs were met despite the challenges, adapting quickly to the situation to maintain service quality.
What is the significance of the new lottery mentioned in the script?
-The script does not provide specific details about the new lottery, but it suggests that it is an unseen development in the dealership industry, possibly related to the crisis and the need for innovative solutions.

Outlines

00:00

🚗 Cyber Attack Impact on Auto Dealerships

A cyber attack on CDK Global, a software provider for 15,000 auto dealerships, has severely impacted the industry, causing a backlog of transactions that had to be manually processed with pen and paper. The incident brought competitors together in an unusual show of unity, as they adapted to the crisis by forming new relationships and sharing strategies. Despite the disruption, the Colorado Auto Dealers Association believes that the impact on sales is temporary and that the industry will bounce back quickly. There is ongoing concern about potential breaches of customer data, and the dealerships are now working to catch up on the backlog and restore normal operations.

Mindmap

Keywords

💡Influx

Influx refers to a large number of people or things entering or affecting a place or situation in a relatively short period of time. In the context of the video, it is used to describe the increase in people on the farm, possibly due to an event or situation that attracted them there.

💡Cyber Attack

A cyber attack is an attempt to damage or disrupt digital systems, often with malicious intent. The video discusses a cyber attack on CDK Global, which provides software for auto dealerships, highlighting the severity of the disruption it caused within the industry.

💡CDK Global

CDK Global is a company that provides integrated information technology and digital marketing solutions to the automotive retail industry. The script mentions a cyber attack on CDK Global, emphasizing its role as the backbone of the dealers' technology platform and the impact of the attack on the industry.

💡Auto Dealerships

Auto dealerships are businesses that sell new or used cars at retail. The video focuses on the challenges faced by these dealerships due to the cyber attack on their software provider, CDK Global, and how it affected their operations.

💡Backbone

In the context of the video, 'backbone' refers to the essential infrastructure or system that supports a particular activity or organization. It is used to describe the critical role of CDK Global's software in the functioning of auto dealerships.

💡Incapacitation

Incapacitation in this context means the state of being unable to function or operate effectively. The script indicates that some auto dealers were completely incapacitated due to the cyber attack, unable to process transactions or carry out their usual business activities.

💡Adaptation

Adaptation is the process of adjusting to new conditions or requirements. The video script highlights how auto dealerships had to adapt quickly to the situation by reverting to manual methods of processing transactions, demonstrating their resilience in the face of the cyber attack.

💡Catch-up

Catch-up refers to the act of reaching the same level or standard as others after falling behind. In the script, it is mentioned that once the software was back online, dealerships had to do a lot of catch-up to process the backlog of transactions that had accumulated during the outage.

💡Breach

A breach is a violation of security or a failure to uphold an agreement. The video mentions an ongoing investigation into whether customer data was breached during the cyber attack, indicating a potential compromise of sensitive information.

💡Internal and Back Office

Internal and back office refer to the behind-the-scenes operations and management of a business. The script suggests that most of the burden of the cyber attack's aftermath should be handled internally, within the back office, to minimize the impact on customers.

💡Patience

Patience is the capacity to accept or tolerate delay, trouble, or suffering without getting angry or upset. The video emphasizes the virtue of patience as dealerships and their customers navigate the challenges posed by the cyber attack and the subsequent recovery process.

Highlights

Influx of people on the farm, indicating a significant event or change.

The cafe is taking safety measures in case the creator wants something back.

Auto dealership software is back online after being down.

The software outage crippled many repair centers and showrooms across the state.

Andrew Haubner reports on potential delays in the industry.

Dealerships had to revert to manual processing of transactions using paper and pen.

The new lottery introduced in the dealership industry is unseen.

Johnson discusses the unusual situation of dealerships banding together.

Tickets started stacking up, indicating a backlog in the system.

A cyber attack on CDK Global affected software for 15,000 auto dealerships nationwide.

CDK Global is the backbone of the dealers' technology platform.

Some dealers were completely incapacitated by the cyber attack.

Dealerships, known for competition, came together quickly to adapt.

Matthew Grubbs from the Colorado Auto Dealers Association sees minimal upheaval.

The burden of the breach should be internal and back office.

Patience is needed as everyone gets back up and running.

Sales may have slowed down, but next month is expected to be very busy.

There is an ongoing investigation about potential customer data breach.

Andrew Hoeppner is covering the story from Colorado First.

Andrew covers Jefferson County and invites story ideas through CBSCOLORADO.COM.