Group 1 Automotive confirmed this morning that the recent cyberattack on software provider CDK Global has significantly disrupted business applications and processes at numerous U.S. automotive dealerships relying on CDK’s systems. However, despite the outage, Group 1’s U.S. dealerships continue operations using alternative methods, while its U.K. locations remain unaffected.
Last Wednesday, CDK Global shut down its systems following a cyber incident, initiating an investigation and consulting with experts. Some services were restored later that day, but a subsequent attack forced another shutdown. This disruption halted service orders, sales, title work, and payroll calculations for hourly mechanics at affected dealerships. An assistant service manager at a Philadelphia-area Ford dealership mentioned they have reverted to paper processes, pushing through the disruption with old-fashioned methods.
Houston-based Group 1 Automotive activated its cyber incident response procedures to protect and isolate its systems from CDK’s platform. With 202 dealerships in the U.S. and U.K., Group 1 is closely monitoring the situation and may take additional actions if necessary. CDK has informed Group 1 that system restoration could take several days, but the exact timeline remains uncertain.
According to dealership consultant Matthew Hilty, approximately 50% to 60% of U.S. dealerships use CDK’s software for a comprehensive range of services, including sales, title work, financing, and parts orders. The depth of CDK’s integration into dealership functions underscores the widespread impact of the cyberattack.
Moreover, AutoNation, with 271 retail stores and dealerships across the U.S., also reported impacts on sales, service, inventory, customer relationship management, and accounting functions due to the attack. The company implemented preventive measures to protect its systems and data, continuing operations with manual processes, albeit with lower productivity. Sonic Automotive and CarMax have similarly acknowledged disruptions, with Sonic using workarounds to minimize problems and CarMax anticipating potential indirect effects despite not using CDK’s dealer management system.
