CDK Global, the software provider for 15,000 car dealerships in North America, faced a cyber attack on Tuesday evening, forcing shutdowns and leaving employees to use spreadsheets and sticky notes during the outage.

The breach disrupted operations for auto dealerships across the U.S. and Canada as CDK Global shut down most of its systems to investigate the incident. The attack highlights the growing threat of cyber assaults on car dealerships, which hold vast amounts of sensitive customer data. Although some systems were restored by Wednesday afternoon, the timeline for full recovery remains uncertain.

CDK Global, known for its comprehensive software covering sales, payments, inventory, and servicing at car dealerships, had to shut down most of its systems as a precautionary measure following the cyber attack. The incident created significant operational challenges for dealerships, necessitating manual alternatives like spreadsheets and sticky notes to maintain essential functions.

The interruption impacted approximately 15,000 retail locations throughout North America, underlining the vast reach of CDK Global’s services. Auto dealerships that rely heavily on CDK’s platforms faced unavoidable disruptions in their daily operations, struggling to maintain service quality and customer satisfaction amid the chaos.

Cyber attacks targeting car dealerships have been on the rise, given the treasure trove of personal and financial information they manage. In a 2023 report by CDK Global, it was revealed that 17% of 175 surveyed dealers experienced a cyber-related incident within the previous year, emphasizing the increasing threat landscape.

While the immediate response involved shutting down systems to prevent further damage and loss, CDK Global has been actively working to restore functionality. By Wednesday afternoon, some systems were back online, but the company has not provided a specific timeline for when all services will be fully operational again.

The company is diligently investigating the origins and methods of the cyber attack, though details about who or which group carried out the attack remain unknown at this time. The lack of clarity on the perpetrator adds another layer of complexity to the ongoing efforts to secure the systems and data.

The challenges presented by the shutdown are compounded by the need for additional security measures moving forward. Dealerships are facing increased pressure due to the frequency and sophistication of these attacks.

For affected dealerships, the priority is damage control and continuity of operations. The abrupt need to switch to manual processes such as using spreadsheets and sticky notes underscores the critical reliance on digital systems in the modern auto dealership environment.

Customers, too, are affected as delays in servicing, sales processing, and vehicle inventory management are inevitable consequences of the compromised digital infrastructure. Establishing trust and maintaining smooth operations will be pivotal for dealerships in the face of potential customer dissatisfaction.

The broader industry implication is a heightened urgency for comprehensive cybersecurity strategies. Both CDK Global and its clients need to fortify their defenses and ensure robust recovery plans are in place to mitigate the fallout from such cyber incidents.

As investigations continue and restoration efforts proceed, the auto dealing community will be closely monitoring the developments. The incident serves as a stark reminder of the vulnerabilities inherent in dependent digital ecosystems and the critical importance of preparedness against cyber threats.