July 14, 2024
Industry News

All dealers are expected to go live by early July 4th, according to CDK

CDK mentioned on Monday that it expects all dealers to be operational on its dealer management system (DMS) by late July 3 or early morning on July 4.

The company, which supplies software to car dealerships, recently experienced a temporary shutdown of all its systems in June due to a cyber incident investigation.

“We are currently following a phased approach to the restoration process and are swiftly bringing dealers back online on the dealer management system,” CDK stated.

In addition, CDK mentioned that its customer service channels are now up and running and efforts are ongoing to bring other applications back online.

Last week, the company successfully transitioned two small dealer groups and one major publicly traded auto retailer group onto the DMS as part of its phased approach.

The interruption caused some U.S. auto dealers to resort to manual paperwork while the technology and software provider for the car industry worked on restoring systems used by over 15,000 retail locations in the country.

Industry analysts have predicted a slowdown in second-quarter U.S. auto sales as dealers faced challenges accessing critical software due to the disruptions at CDK.

“While the impact of these incidents may vary among dealers, this event presents another obstacle on the automotive industry’s path to recovery,” said Jessica Caldwell, head of insights at Edmunds.

The cyber attack affected approximately half of Volkswagen dealers and around 60% of Audi dealers in the United States, according to reports from Reuters in June.



Q: When does CDK expect all dealers to be live on its dealer management system?

A: CDK anticipates all dealers to be operational on its DMS by late July 3 or early morning on July 4.


Despite the challenges faced due to the cyber incident, CDK is actively working on restoring its systems and bringing dealers back online on the dealer management system. Industry experts are closely monitoring the impact of these disruptions on the automotive industry, with expectations of slower growth in U.S. auto sales for the second quarter.

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