Major Cyber Incident Paralyzes Thousands Of US Auto Dealerships

The company supplying software for managing sales and services to thousands of auto dealerships across the US reported yet another cyber disruption on Thursday, disrupting sales of new and used vehicles.

X user Car Dealership Guy reports that CDK Global sent an email to auto dealers informing them of “an additional cyber incident late in the evening on June 19th.”

“Out of continued caution and to protect our customers, we are once again proactively shutting down most of our systems,” the email read.

CDX told its clients, which includes almost 15,000 dealerships, “At this time, we do not have an estimated time frame for resolution, and therefore, our dealers’ systems will not be available at a minimum on Thursday, June 20th.”

I’m absolutely speechless.

ANOTHER automotive “cyber incident” occurred last night.

CDK again the victim.

Dealerships contribute 3-3.5% of GDP and CDK power over 50% of them.

All systems are shut down. Again.

This feels like a bad dream. pic.twitter.com/y6SstS8D6H

— Car Dealership Guy (@GuyDealership) June 20, 2024

The auto industry is a powerhouse in the US economy, contributing 3-3.5% of the nation’s GDP. It employs over 1.7 million people at automakers, suppliers, and thousands of dealerships.

Clarification:

The entire auto industry makes up 3-3.5% of GDP and CDK powers over 50% of dealerships.

— Car Dealership Guy (@GuyDealership) June 20, 2024

Here’s what X users are saying about the cyber incident:

This sucks. We had a showroom full of customers yesterday but couldn’t complete a car deal. I’m sure they all just went across the street bought.

— Alexander the NotsoGreat (@Alex51916166) June 20, 2024

Someone wants to make car prices go down, just saying 🙃

— cirquo (@cirquo) June 20, 2024

CDK sucks, used it for 10 years. Just switched to Tekion 2 weeks ago. No opinion on T yet. Haven’t used it long enough.

— Shawn Cronkrite (@Shawn_cron) June 19, 2024

Still not able to login in Canada 🤬

— 🏆 Kimberly 🇨🇦 (@VGKim81) June 19, 2024

People who aren’t in the car business have no idea how bad this is. Dealerships on cdk very literly cannot sell cars right now and I can’t imagine service would even be able to work. Cdk holds all their inventory, costs on inventory, generates their contracts, labor costs and ros https://t.co/W8o6HuLWDN

— kelsey r (@Kayybee83) June 20, 2024

Hmmm.

CDK was acquired in 2022 by Brookfield Business Partners, LP:https://t.co/f18f4bE0Io

Brookfield trades under symbol BBU, but the news about CDX isn’t being tied to them yet. Interesting… 🤔 https://t.co/aRFYXLMfQs

— Richard Vermillion, JM, MBA (@VermillionRich) June 20, 2024

*Developing…