Earlier this month, Hurricane Beryl made its way to the city of Houston and surrounding areas causing death, damage, and left many residents without power. Among those impacted were local car dealerships. Ben Keating, owner and president of Keating Auto Group, which has 11 dealerships in the affected area, is joining us on the latest episode of Inside Automotive with an update on post-hurricane operations.
Key Takeaways
1. Keating Auto Group faced significant challenges, with eight out of 11 dealerships losing power for up to a week due to Hurricane Beryl. Additionally, two buildings suffered wind and water damage, compounding operational difficulties.
2. Despite the extensive power outage, the dealerships managed to recover quickly, with all locations back up and running. Keating emphasized his team’s resilience in navigating these tough times and getting operations back on track.
3. The CDK outage added another layer of complexity, affecting inventory management and sales processes. Despite these challenges, Keating highlighted the team’s ability to continue operations manually and eventually restore systems.
4. Moreover, the hurricane and CDK outage combined led to a substantial financial hit, particularly in lost revenue during critical sales periods. Keating discussed the long-term financial implications and the struggle to meet monthly performance incentives due to these disruptions.
5. Nevertheless, Keating shared insights on the vulnerabilities exposed by the CDK outage and the importance of cybersecurity. He mentioned the significant investments in cybersecurity to protect the dealership network, emphasizing ongoing concerns despite these measures.
"The big takeaway is our dependence on computer systems and data. Despite all the safeguards we have in place, I still feel very vulnerable because we have 2,300 gateways out there. It's a delicate situation, and I don’t know the solution." – Ben Keating.
