The automotive industry relies heavily on technology, and a recent cyberattack on CDK Global has thrown a spotlight on just how crucial one particular software provider is to car dealerships across North America. For those wondering, What Car Dealerships Use Cdk?, the answer is: a vast network of them depend on CDK’s dealer management system (DMS) for virtually every aspect of their operations. This widespread reliance is why the cyberattack has caused significant disruption, extending well into a second week for many.
CDK Global provides software solutions to over 15,000 car dealerships. To put that into perspective, that’s a significant portion of the 16,835 car dealers operating in the U.S. as of the end of 2023. These dealerships aren’t just using CDK for one or two minor functions; they are using it as the backbone of their businesses. CDK’s DMS handles critical operations including:
- Sales Processes: From initial customer interaction to finalizing deals, CDK software manages the sales workflow.
- Customer Relationship Management (CRM): Dealerships use CDK to maintain customer records, track interactions, and manage marketing efforts.
- Parts and Inventory Management: Efficiently managing parts inventory and ordering is crucial, and CDK provides the tools for this.
- Service Operations: Scheduling appointments, managing service workflows, and tracking repairs are all facilitated by CDK.
- Accounting Functions: The financial operations of a dealership, from payroll to financial reporting, are often managed within the DMS.
When CDK Global experienced a cyberattack on June 19th and had to shut down systems, the impact was immediate and widespread. Dealerships found themselves unable to access essential systems, forcing many to revert to manual, analog processes. This disruption highlights the deep integration of CDK into the daily workings of a modern car dealership.
While CDK has stated they are making progress in restoring services, full recovery is expected to extend to June 30th. They have begun bringing some dealers back online in a phased approach, starting with a test group. However, the automated updates from CDK caution that integrations with OEM (Original Equipment Manufacturer) systems and third-party partners may be delayed, further complicating the recovery for dealerships.
The severity of the CDK outage is underscored by the fact that several major, publicly traded car dealership groups have filed cyber incident disclosures with the Securities and Exchange Commission (SEC). These filings serve as warnings to investors about the potential negative impacts on business operations. Companies like Sonic Automotive, Penske Automotive Group, AutoNation, Group 1 Automotive, and Lithia Motors are among those who have had to officially report the disruption caused by the CDK cyberattack.
In the interim, CDK has created a dealer resource center to provide temporary support with documents and forms. However, this is a far cry from the integrated digital systems dealerships rely on daily. The incident serves as a stark reminder of the automotive industry’s dependence on specialized software like CDK and the potential consequences when these systems are compromised. As dealerships navigate this ongoing disruption, the question of “what car dealerships use CDK” has become acutely relevant, emphasizing the breadth and depth of CDK’s influence in the automotive retail landscape.
