The cyber landscape has become a treacherous frontier for businesses, with the most recent casualty being a major software provider to car dealerships. A cyberattack on CDK Global has left approximately 15,000 dealers in the lurch as their critical systems remain held hostage. Cybersecurity expert David Derigiotis highlighted the consequence of such an event, telling CBS News Detroit, "When you can't do that it brings the business to a standstill, or at least a very slow halt."
Dealerships are feeling the pinch across the entire spectrum of their operations—from sales to repairs, even payroll is compromised. In Southfield, Michigan, Village Ford's Jay Sturtz lamented the shift back to antiquated methods saying, “It has been difficult, more so in service than in sales. They do need to have this information in CDK. We are going to handwriting repair orders. So, we'll just have to, once the system comes back up, we're going to have to put those into the system,” according to an interview with CBS News Detroit. Metropolitan Detroit car dealerships are not alone in this analog regression; similar reports have emerged nationwide as the cyberattack, which CDK has attested to, surges through auto retailers' reliance on digital systems.
CDK Global acknowledged the severity of the incident, with the company's spokesperson Lisa Finney, stating that the decision to shut down systems was "out of an abundance of caution" for customers. Despite efforts to restore service, additional attacks have forced further shutdowns. Even as CDK vows vigilance and assures regular communication with their customer base, a timeline for full restoration remains elusive. This information comes from Detroit Free Press, who also reported that a group believed to be based in eastern Europe is responsible for the attacks and is demanding a ransom in the tens of millions.
Meanwhile, dealerships struggle to maintain operations under strained circumstances. "It makes it a little bit inconvenient on our side, not the customer side, but we’re finding ways to sell and service cars as we’re open as usual,” Todd Szott, President of the Detroit Auto Dealers Association, recounted his experience with pragmatic resolve in a statement obtained by ClickOnDetroit. The hack's repercussions extend beyond immediate inconveniences to looming administrative burdens as businesses contemplate the arduous task of back-logging all transactions manually recorded during the outage.
Ford has sought to reassure customers and dealers alike, affirming that many are still able to engage in sales and service despite the upheaval. They suggested that customers contact the Ford Customer Relationship Center, should they encounter difficulties at affected dealerships, as relayed by CBS News Detroit.
