David Paul Morris/Bloomberg/Getty Images
A new Ford vehicle for sale at a dealership in Colma, California. CDK Global, which provides software to approximately 15,000 auto dealerships, was hit by a cyber attack.
new york
CNN
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Retail software provider CDK Global is grappling with a systems outage that has paralyzed about 15,000 auto dealerships across North America since Wednesday and said it will likely take days for its software to be back online and operational.
The data provider’s software, used by dealerships to manage everything from schedules to records, said it had begun restoring the software on Saturday.
“We expect this process will take several days to complete and in the meantime we will continue to actively engage with our customers and offer them alternative ways to do business,” a CDK spokesperson told CNN on Saturday.
CDK said it was investigating the outages after two cyber incidents caused its systems to go offline. The company did not disclose who was behind the incidents.
Bloomberg previously reported that the company was in negotiations with a group of Eastern Europe-based hackers who were demanding a ransom of tens of millions of dollars to end the outage.
CDK did not respond to CNN’s request for comment on the reported ransom on Sunday.
Many automakers and dealerships have rushed to implement temporary solutions to maintain retail operations while computer software remains offline.
CDK sent an automated message via its toll-free number on Saturday, advising dealership employees to be aware of phishing scams and take precautions to protect sensitive information such as passwords.
“The association continues to seek information from CDK regarding the nature and scope of the cyber incident so dealers can respond appropriately,” Mike Stanton, president and CEO of the National Automobile Dealers Association, said in a statement to CNN.
“Thousands of franchised new car dealers rely on CDK to run their businesses and this outage impacts their ability to deliver a seamless customer experience and process transactions efficiently,” he added.
The outages could slow business at dealerships and delay shipments as the summer season gets underway. U.S. dealer sales are expected to exceed $1.2 trillion in 2023, according to the National Automobile Dealers Association.
Automaker Ford told CNN it was working with dealers on alternative software systems and other workarounds. A company spokesman stressed that the impact of the outages varies by dealer. Ford encouraged customers to contact their local dealers for more information.
Dealers on the East Coast told CNN on Sunday they were filling out sales paperwork manually. Some said they were having trouble registering their purchases with their states because they rely on CDK’s software to send registration information to their state’s Department of Motor Vehicles. One used-car dealer told CNN he was submitting paperwork manually and sending runners with it to the car registry. Another dealer said he was continuing to sell cars but was unable to complete transactions on time.
Penske Automotive said in a Securities and Exchange Commission filing Friday that its auto dealers do not use CDK Global, but that its Premier Trucking Group unit, which primarily provides services to businesses, uses CDK’s dealer management system. Penske said it is working to implement a response plan and that its 48 PTG locations remain open.
Sonic Automotive said in a separate SEC filing that it too was continuing operations but had put in place “workarounds to minimize disruptions from the CDK outage.” The company added that the incident would likely have an adverse effect on Sonic’s financial and business operations.
Premier Truck Group did not provide details about its response plans, and Sonic did not respond to CNN’s request for comment.
