Cyberattack Puts Car Sales in 'Park' at Thousands of Dealerships

Cyberattack Puts Car Sales in 'Park' at Thousands of Dealerships

4 minute read
Published: 6/22/2024

CDK Global's two cyber incidents have left 15,000 car dealerships across the U.S. and Canada resorting to sticky notes and Excel sheets, halting sales and sparking legal threats.

As car dealerships grapple with handwritten orders and Excel spreadsheets in the wake of CDK Global's multi-day system outage, the automotive industry faces a digital stone age scenario. With essential software crippled, thousands of dealerships are seeing significant financial losses and disrupted operations, prompting legal considerations and heightened cyber paranoia. Meanwhile, CDK Global's collaboration with third-party experts offers no immediate resolution, extending the digital chaos for untold days.

Since the software outage began, dozens of car dealerships have reported sharp declines in sales stemming from their sudden return to manual processing. As types of digital operations, from financing to scheduling, depend heavily on CDK Global's dealer management system (DMS), this has left dealership employees scrambling to adapt to archaic methods. Imagine trying to sell a car using sticky notes and spreadsheets—it's as if they're stuck in the 90s!

"We went from the 21st century back to the Stone Age overnight," said one dealership owner. "Customers used to getting a car in hours are now looking at days or even weeks. Not the kind of vintage experience people want." With the DMS that executed everything from paperwork to service communications on the fritz, dealerships have turned to hand-written orders, sticky notes, and Excel sheets to keep business limping along.

While CDK Global stated that shutting down their systems was a necessary cautionary measure, the lack of a clear timeline for resolution has only aggravated the situation. The company is currently working with third-party experts to restore functionality but has been unable to provide an estimated time for when services will be back online. This uncertainty continues to fuel frustration among dealers and service staff. Some claim the downtime is wreaking havoc not just on their bottom lines, but also on customer satisfaction and long-term loyalty. One dealer even joked that they might have to bring back the typewriter from the basement.

Not surprisingly, the financial implications of this outage are expected to be substantial. With every passing hour, dealerships are bleeding potential revenue. At this rate, they might be better off selling lemonade to make up for the losses! Some are already considering legal actions against CDK Global in an attempt to get redress for the disruptions and financial tumult caused by the incident.

"We're looking into our legal options," one dealer mentioned, wishing to remain confidential due to sensitive ongoing discussions. "We can’t afford to sit idle when the bread and butter of our business is at stake. Lawyers for other dealerships may follow suit as the depth of disruption is fully realized. After all, we can't just sit around and twiddle our thumbs while waiting for everything to magically fix itself."

The cyber incidents have additionally put dealers on high alert for further security threats. Phishing attempts and other cyberattacks could exploit vulnerabilities that have been laid bare by the outage. Dealerships are now investing time and resources not just in managing sales and services despite the outage, but also in bolstering their cybersecurity measures as a counteroffensive strategy. Perhaps it's time to trade in sticky notes and Excel spreadsheets for something a bit more digital and less 1980s.

Even simple transactions have turned into logistical nightmares. The clutter of sticky notes and the frequent back-and-forth to match records is making mistakes almost inevitable, leading to customer complaints and further operational delays. "It's like playing chess while blindfolded," lamented another dealership employee.

CDK Global's services are ingrained in the day-to-day activities of these dealerships, and its absence has exposed just how reliant the industry is on digital tools. The outages have left many pondering over developing alternate, perhaps in-house, DMS solutions to at least diversify their operational risk. Maybe it’s time for dealerships to dust off those old typewriters and fax machines, just in case.

Meanwhile, the public relations department at CDK Global is in overdrive, trying to juggle multiple tasks at once, including placating its frustrated clientele and working towards a resolution. 'We understand the severity of the situation,' a CDK spokesperson stated. 'Our focus is on ensuring we get it right, not on quick fixes. We promise our customers that we won't leave them high and dry.'

In light of these upheavals, some dealerships are pushing for changes in how such critical systems are managed and backed up. 'We're almost certainly going to rethink our disaster recovery plans and cyber insurance policies,' said another dealership operator. 'This has been a wakeup call for all of us in the industry. Time to dust off those old backup drives and pretend it's Y2K again.'

As the outage continues, the pressure mounts for solutions. While CDK Global endeavors to rectify the situation, the dealers remain in a state of cautious optimism, hoping that this digital darkness has an end in sight. Until then, it's back to the basics with pens, papers, and an ample supply of Excel knowledge.