CDK Global, a major provider of dealership management systems (DMS), has informed its clients that a complete resolution to the current system outage will not occur before June 30. This announcement comes after the company was hit by two significant cyberattacks, resulting in a prolonged disruption now in its seventh day.
Table of Contents
1. Impact on Dealerships and Sales
The outage is causing considerable concern among U.S. car dealerships as the second quarter comes to a close. With systems down, both new and used vehicle sales are expected to be adversely affected. The disruption has dealers worried about the implications for their end-of-month financial processes and overall sales performance.
A top economist has noted that this incident adds to consumer hesitancy around purchasing big-ticket items like vehicles, due to perceived inconveniences during the buying process amid the outage.
2. Company Statement
In a recent communication to its dealers, CDK Global stated:
“We do feel it is important to share that we do not believe that we will be able to get all dealers live before June 30. Should you need to make alternate plans for your month-end financial close process, you should do so,”
This statement underscores the severity of the disruption and the ongoing efforts by CDK Global to restore functionality.
3. Progress and Future Steps
Despite the challenges, CDK Global has reported making significant progress in addressing the cyberattacks. However, the complexity of the situation means that a full system restoration will take more time.
Dealers are advised to prepare for alternative methods to manage their end-of-month processes and sales reporting. The prolonged outage highlights the critical importance of robust cybersecurity measures and contingency planning within the automotive retail sector.
4. Conclusion
As the industry navigates this disruption, the resilience and adaptability of dealerships will be crucial in maintaining operations and customer satisfaction. CDK Global’s ongoing efforts to resolve the issue will be closely monitored by all stakeholders involved.
