A cyber incident at data provider CDK Global has caused a significant computer system outage at auto dealerships across the United States and Canada. The software, used by approximately 15,000 auto dealers, was shut down as a precautionary measure, potentially impacting sales over the first official weekend of summer.
"We are actively investigating a cyber incident. 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," said CDK spokesperson Lisa Finney in a statement.
The outage could last for several days, according to sources familiar with the situation. The shutdown has affected various dealership operations, from record-keeping to scheduling and communication about service.
The inability to access customer agreements and other essential data could potentially lead to lost sales.
Jeff Ramsey, an executive with Ourisman Auto Group, and Brian Benstock, general manager of Paragon Honda and Paragon Acura in Long Island City, New York, expressed their concern about the impact on business to CNN.
"We have customers coming in today who had deals saved in the system," Ramsey said.
Despite the challenges, dealerships are finding ways to continue operations.
"My selling team can hand-write a buyer's order," said Benstock.
Automakers, including Kia, Toyota, Stellantis, and Ford, have been assisting dealerships in serving customers amidst the technology issues.