Major cyberattack still hampering car dealerships

Summary

A cyberattack on CDK Global, a key software provider for US car dealerships, has significantly impacted sales operations, with some dealerships reporting a 50% drop in new car sales. The ransomware attack locked systems at around 15,000 dealerships, disrupting services from sales to warranty work. JD Power estimates a possible 5% decrease in June retail sales compared to the previous year. Despite the disruption, customers are advised to be patient or seek dealerships not using CDK Global's software, as the company aims to restore all systems by July 4th.

Takeaways

• 🚗 A cyber attack on CDK Global, a key software provider for car dealerships, has significantly impacted the ability of many US car dealerships to sell cars.
• 📉 JD Power estimates that the cyber attack may have caused a drop in June retail sales by more than 5% compared to the previous year.
• 🔒 The attack involved hackers holding the CDK Global system for ransom, affecting approximately 15,000 dealerships nationwide.
• 💰 The ransom demanded by the hackers was reportedly in the millions of dollars, as reported by Bloomberg.
• 📊 The DMS (Dealer Management System) targeted by the attack is crucial for linking together new and used vehicle sales, finance offices, and service departments.
• 🛠️ Consumers may face difficulties in getting routine services like oil changes and warranty work due to the system being locked.
• 📉 New car sales at one New Jersey Lexus dealership were reported to be down by 50% for the month due to the cyber attack.
• ⏱️ The lack of the usual fast software system has doubled the time required for dealerships to process sales and services.
• 💼 CDK Global has not confirmed whether the ransom was paid but is actively working on restoring the system for all dealers.
• 🎉 The company expects all dealer connections to be live by the morning of July 4th, aiming to resume normal operations in time for the holiday sales.
• 🛍️ Consumers looking to buy a car might consider dealerships that do not use CDK Global's software or wait until the system is restored post-holiday.

Q & A

What is the main issue faced by US car dealerships in the script?

US car dealerships are struggling with the aftermath of a cyber attack on CDK Global, a key software provider, which has hampered their ability to sell cars.

How did the cyber attack impact June retail sales according to JD Power estimates?

JD Power estimates suggest that the cyber attack may have caused June retail sales to drop by more than 5% compared to the previous year.

What is the name of the software provider that was targeted by hackers?

The software provider targeted by hackers is CDK Global.

What services does CDK Global's software typically provide to car dealerships?

CDK Global's software helps run service departments, process financing for car purchases, and more at car dealerships.

How many dealerships were affected by the cyber attack according to the script?

The cyber attack locked up the system at approximately 15,000 dealerships nationwide.

What was the ransom demand reported by Bloomberg?

The ransom demand by the hackers was reported to be in the millions of dollars to release the locked system.

What is the role of the DMS system in automotive dealerships as mentioned by Tyson Jany?

The DMS system is the backbone of an automotive dealership, linking together new and used vehicle sales, the finance office, and the service department.

How has the cyber attack affected consumers at the dealerships?

Consumers may be having trouble getting oil changes and warranty work done at dealerships as a result of the impact on the DMS system.

What was the experience of Ernest and Leand Ein Holtz at the Lexus dealership?

Ernest and Leand Ein Holtz had to wait for hours at the Lexus dealership as the finance manager had to manually input information and provide a paper receipt due to the system being down.

What is the expected timeline for CDK Global to restore its systems?

CDK Global expects all dealer connections to be live by the morning of July 4th.

What advice does the script give to consumers who are in the market for a new car?

The script advises consumers to be patient, consider dealerships that do not use CDK Global's software, or wait until after the July 4th holiday when CDK Global expects to have its systems restored.