CDK mandates DMS transition after cyber incident

CDK, a leading provider of software to car dealerships, has set a deadline for all dealers to transition to its dealer management system (DMS) by late July 3 or early morning on July 4. This directive comes after CDK experienced a cyber incident in June, prompting a temporary halt to all systems for investigation purposes.

Currently, CDK is in the process of gradually restoring its systems and ensuring that dealers are swiftly brought online on the DMS platform. Customer care channels have been reinstated, and efforts are underway to make other applications operational to facilitate a smooth transition.

As part of its phased restoration plan, CDK has successfully onboarded two small groups and one large publicly traded auto retailer group to the DMS. However, the disruption caused by the cyber incident led to some U.S. auto dealers resorting to manual processes while CDK worked on restoring systems for over 15,000 retail locations nationwide.

Industry experts anticipate a slowdown in second-quarter U.S. auto sales due to the challenges faced by dealers in accessing critical software during the CDK disruptions. Notably, the cyber attack impacted nearly half of Volkswagen dealers and approximately 60% of Audi dealers in the U.S., highlighting the widespread repercussions of the incident.

Overall, this event has introduced additional hurdles to the automotive industry's recovery journey, posing varying impacts on different dealers. To stay updated on the latest developments and insights in the automotive sector, consider subscribing to our notifications for breaking news and daily highlights on your preferred messaging platform.