Colorado car dealerships are facing significant challenges in providing service and sales due to a lingering cyber incident that has impacted CDK Global, a leading provider of software and technology solutions to the automotive industry.
CDK Cyber Incident
On June 21, 2023, CDK Global experienced a cyber incident that resulted in a widespread disruption of its systems, including those used by automotive dealerships for sales and service operations. The incident has had a profound impact on dealerships across the country, including those in Colorado.
Service Disruptions
CDK's systems are crucial for dealerships to access vehicle information, schedule appointments, and process service orders. The cyber incident has disrupted these systems, making it difficult for dealerships to provide routine maintenance and repairs.
Many dealerships in Colorado have had to suspend service operations or significantly reduce their service capacity. Customers are experiencing delays in getting their vehicles serviced, and some dealerships have had to turn away new service customers.
Sales Impact
CDK's systems are also used by dealerships to manage inventory, generate sales contracts, and process financing. The cyber incident has hindered dealerships' ability to complete sales transactions and deliver vehicles to customers.
Dealerships are having difficulty accessing vehicle pricing and availability, and customers are encountering delays in finalizing purchases. Some dealerships have resorted to manual processes, such as handwritten contracts, to complete sales.
Financial Implications
The disruption caused by the CDK cyber incident is having a significant financial impact on Colorado car dealerships. Lost service revenue and delayed sales are affecting dealerships' bottom lines.
Some dealerships are having to issue refunds to customers who have prepaid for services that cannot be provided due to the disruptions. Others are facing additional expenses from overtime pay for employees and the need for backup systems.
Industry Response
The automotive industry is working together to address the impact of the CDK cyber incident. CDK Global has been providing updates on the situation and working to restore its systems.
Dealerships are implementing contingency plans, such as partnering with other dealerships to access service equipment and staff. They are also exploring alternative technology solutions to minimize the disruptions.
Customer Communication
Colorado car dealerships are working diligently to keep customers informed about the service and sales disruptions. They are contacting customers with appointments to reschedule or provide updates on the status of their vehicles.
Dealerships are also communicating with potential customers to explain the delays and provide alternative options for purchasing vehicles.
Timeline
The CDK cyber incident is ongoing, and it is unclear when the systems will be fully restored. Dealerships are hopeful that the disruptions will be resolved soon; however, they are preparing for the possibility of extended service and sales interruptions.
Conclusion
The CDK Global cyber incident has created significant challenges for Colorado car dealerships, disrupting service operations and delaying sales. Dealerships are working together and implementing contingency plans to mitigate the impact, but customers are experiencing delays and inconvenience. The industry is awaiting updates from CDK Global on the progress of the investigation and the restoration of its systems.
