technology

Luxury car dealership affected by cyber attack, switches to pen and paper for transactions

Published June 21, 2024 · 2 min read
SUN VALLEY, CA – AUGUST 7: Employee Johnny Bautista paints identifying messages on a Toyota Land Cruiser and other cars that were turned in through the Cash for Clunkers federal program at Aadlen Brothers Auto Wrecking junkyard on August 7, 2009 in Sun Valley, California. The Senate has voted 60 to 37 to approve $2 billion in additional funding for the popular auto rebate initiative that was in danger of running out of money. The additional funding means that another half million vehicles can be purchased, providing an increased boost to the sluggish auto industry. The program, which offers consumers $3,500 to $4,500 to trade in their older high-mileage vehicle for a more fuel-efficient one, has created such demand that some locales are reporting shortages of popular high-mileage models like the Ford Focus and Toyota Prius. Under the program, dealers are instructed to replace the oil of the trade-ins with a solution of 40% sodium silicate and 60% water and run the engine until it is damaged beyond repair to ensure that those cars will be taken off the road forever. Critics charge that auto parts recyclers and charities that rely on old car donations are being hurt by the policy. (Photo by David McNew/Getty Images)

Due to a cyber attack incident, software company CDK Global has shut down its service system, affecting 15,000 car dealerships across the United States, leading some dealerships to resort to using pen and paper for sales.

Car dealerships all over the country have been unable to use the software systems that assist in their daily operations for two consecutive days, impacting their normal business of selling or servicing vehicles.

CDK Global, which provides technical software for car dealerships, stated that they experienced two network incidents, the first one occurring on Wednesday. Upon learning about the network incident, the company shut down most of its systems as a precaution. Some systems were restored later that day. However, another network incident occurred subsequently.

The Wall Street Journal reported that a spokesperson for CDK mentioned that they are assessing the situation and providing regular updates to customers. The company offers software to nearly 15,000 dealerships for managing sales, payroll, and general office operations.

CDK stated that they cannot predict a timetable for resolving the issue. According to messages sent to dealerships, the systems have been unusable at least on Wednesday and Thursday.

“We remain vigilant, working to restore our services and get dealerships back to normal operations as soon as possible,” a spokesperson for CDK said.

Some dealerships have had to resort to using pen and paper to record sales transactions.

Geoffrey Pohanka, Chairman of Pohanka Automotive Group, told the Huari Daily that his company heavily relies on the CDK system in their daily business operations.

He stated that they are now manually completing paperwork for sales and repair orders. This is a workaround and emergency plan that dealerships have in place for potential situations like this, including in the event of a power outage.

“The issue is, if this situation persists for a long time, it will be very challenging,” he added.