Car Dealerships Face Financial Losses in CDK Global Software Outage: How the Cyber Incident Affected Dealerships Across North America

CDK Global has reported that its software is now back online after a cyber incident caused a software blackout. The outage began on June 19 and affected the company’s systems that service car dealerships across North America. Car dealerships rely on CDK’s software to manage various aspects of their operations, from scheduling to records.

The outage made it difficult for dealers to track customer interactions, orders, and sales, impacting their ability to earn income. For example, Bernard Irvin, a salesperson at a Ford dealership in South Carolina, expressed concerns about the outage affecting payroll at his dealership.

If the outage had continued, it could have resulted in significant financial losses for car dealerships. CDK’s system collapse could have led to about $944 million in direct losses due to business interruptions for affected car dealers if it lasted a full three weeks. The company stated that it is actively working to bring other applications back online and expects the Customer Relationship Management system to be operational by July 4.