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CDK Global: Car Dealers Hit by Major Computer System Outage
CNN –
A cyber incident at data provider CDK Global, whose software is used at 15,000 auto dealerships, disrupted operations Wednesday at U.S. and Canadian dealerships, the company said.
“We are actively investigating a cyber incident,” CDK spokeswoman Lisa Finney said in a statement shared with CNN. “Out of an abundance of caution and concern for our customers, we have shut down most of our systems and are working diligently to get everything up and running as quickly as possible.
CDK operates several different types of products that auto dealers use to handle things from keeping records of deals transacted to scheduling and communicating about services. Not every dealer uses CDK products, and even those that do may not use them for everything, but this has been an issue for many.
“We have customers coming in today who have had deals saved in the system,” said Jeff Ramsey, an executive at Maryland-based Ourisman Auto Group.
To protect customer privacy, customer data is no longer written on a piece of paper that sits on the table. Instead, information about customer deals and appointments is kept on a server that is now impossible for its sellers to access.
Ramsey said he understands, however, that CDK is doing what it deems necessary to protect this sensitive data. But in the meantime, it’s a big hassle and can cost your dealerships some business. Customers who are slow to close a sale at one of their dealerships can simply find a nearby dealership that is not experiencing these issues and purchase a new vehicle there.
It’s car buying season, so it’s a real concern.
“It’s the summer months,” he said. “This is where we need systems to work.”
Ramsey and Brian Benstock, general manager of Paragon Honda and Paragon Acura in Long Island City, New York, said they continued to do business and sell cars despite the problems.
“My sales team can handwrite the buyer’s order,” Benstock said.
The biggest hassles will be for the dealership’s accountants and business owners, he said. Many of his employees have been in this business since before it became networked and computer-dependent, he said, but it’s still a problem and he’s still concerned about customer data.
A statement released by CDK later in the afternoon said that part of the company’s system had been restored to operation, but not all of it yet.