CDK Cyber Outage Disrupts US Auto Dealers for Second Day

A significant cyber outage at CDK Global, a prominent retail technology and software provider, has entered its second day, causing widespread disruptions for automobile dealerships across the United States. The affected companies reported the outage on Thursday.

The outage has significantly impacted automotive dealerships throughout the U.S. and Canada. A spokesperson for BMW North America confirmed to Reuters that the disruption includes a portion of BMW Group dealers. CDK Global, which provides essential software services to car dealerships, assured that it is working diligently to restore its systems and resume normal operations “as quickly as possible.”

On Wednesday, CDK briefly shut down all its systems to investigate the cyber incident. This proactive measure aimed to identify the nature of the issue and prevent further damage. The National Automobile Dealers Association highlighted the urgency among dealers to protect customer information and gather detailed information from CDK about the incident’s scope.

The outage has also affected the phone system of Holman, a privately owned vehicle dealer, exacerbating the disruption. The cyber incident underscores the vulnerabilities in digital infrastructure that businesses rely on for daily operations.

CDK Global was acquired by Brookfield Business Partners in April 2022 for $6.41 billion, transitioning from a publicly traded entity to a private company. As the last major public provider of software to auto dealers and manufacturers, this acquisition marked a significant shift in the industry’s landscape.