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CDK Global’s cyberattack recovery and broader industry impact

In a significant step forward, CDK Global has announced the successful launch of a small initial test group of dealers on its new Dealer Management System (DMS). Lisa Finney, CDK spokesperson, shared the exciting development, noting, “We have successfully brought a small initial test group of dealers live on the DMS. Once validation is complete, we will begin phasing in other dealers.”

This milestone marks a crucial phase in CDK’s broader strategy to enhance its suite of solutions for automotive dealers. The phased approach ensures the DMS is rigorously tested and validated before wider implementation, minimizing disruptions and ensuring a seamless user transition.

Finney also highlighted CDK’s ongoing efforts to expand its service offerings. “We are actively working to bring live additional applications, including our Customer Relationship Management (CRM) and Service solutions, as well as our Customer Care channels,” she said. This expansion aims to provide dealers with a comprehensive, integrated platform to streamline operations and improve customer interactions.

“We understand and share the urgency for our customers to get back to business as usual,” Finney emphasized. “We will continue providing updates as more information becomes available.”

CDK’s proactive approach and commitment to supporting its dealer network underscore its dedication to enhancing the automotive retail experience. As the rollout progresses, dealers can expect a more efficient, integrated, and user-friendly system to drive their businesses forward.

Despite this progress, CDK informed over 15,000 affected dealerships on June 25 that full system restoration is not expected before June 30, potentially disrupting their month-end financial processes. Dealerships have had to rely on pen and paper and workarounds with third-party software since their CDK systems went offline.

The cyberattack’s impact is also expected to affect the broader automotive market. A new forecast from J.D. Power and GlobalData estimates that June car sales could drop significantly due to the disruption. The industry’s seasonally adjusted annualized sales rate is projected to be between 14.7 million and 15.4 million vehicles, down from 16.22 million in June 2023.

CDK Global continues to navigate the challenges posed by the cyberattack, working diligently to restore services and support its customers while the automotive industry braces for the broader implications of the event.

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