Retail technology and software provider CDK Global is actively working to restore systems used by over 15,000 retail locations across North America. The company announced on Sunday that it expects the restoration process to take several days. In the meantime, CDK is engaging with its customers and providing alternative methods for conducting business to mitigate the disruption.
Last Wednesday, CDK Global briefly shut down all its systems to investigate a cyber incident. This outage has significantly impacted U.S. auto retailers, including Sonic Automotive and Penske Automotive, which reported operational hits as the outage continued into its third day on Friday. According to Bloomberg, hackers responsible for the cyberattacks have demanded millions of dollars in ransom to cease their activities.
CDK Global, a key software provider for car dealerships, told a dealer through a letter that the system restoration might take several more days. This prolonged downtime underscores the severity of the cyber incident and its wide-reaching impact on the automotive retail sector.
In a significant move, Brookfield Business Partners acquired CDK Global in April 2022 for a staggering $6.41 billion, effectively transitioning the last major publicly traded software provider to auto dealers and manufacturers into a private entity. This acquisition serves as a testament to the pivotal role that CDK plays in the automotive industry, which is now grappling with the far-reaching consequences of this cyberattack.
