CDK Global faces significant challenges after two cyberattacks on June 19, with the fallout expected to continue beyond June 30. CEO Brian MacDonald has defended CDK’s handling of the situation amid the already filed lawsuits, compounding the company’s problems.
In his first public statement since the attacks, MacDonald emphasized that the company is working diligently to restore its dealership management system. “Personally, I have spoken to and continue to communicate directly with many dealers, OEMs, and partners,” MacDonald said in a statement to Automotive News. “I will continue to do so until we see this through.”
MacDonald noted that CDK collaborates with top third-party experts to resolve the issue and restore normal customer operations. The company provides regular updates through emails and phone recordings, and its executive leadership team engages with dealer groups through daily discussions, emails, and phone calls. Sales and customer success teams also contact dealers to support their sales and service efforts during this period.
However, some customers have expressed dissatisfaction with CDK’s communication during the crisis. Judy Farcus Serra, CFO at Headquarter Automotive in Florida, criticized the company for infrequent updates. She stated that she believed CDK could have done a better job of providing more information over the last six or seven days. She also highlighted the importance of transparency, especially regarding potential data breaches.
Furthermore, Craig Stevens, partner and co-lead of the crisis management practice at DCI Group, emphasized the importance of clear and transparent communication in crises. However, Stevens added that while ransomware attacks pose reputational risks, companies can recover by addressing the root cause of the issue and maintaining transparent communication throughout the crisis.
As CDK Global works to resolve the cyberattack and restore its systems, the company strives to manage its reputation and maintain customer trust amidst ongoing challenges and legal actions.
