CDK Global, a software provider for car dealerships in the U.S., is still dealing with the effects of a recent cyberattack. Some of the services that CDK provides are still not functioning properly, impacting around 15,000 dealerships. The company expects all dealer connections to be restored by July 4. The ransomware attack has caused disruptions for car dealers relying on CDK’s systems for sales, inventory management, and customer relations.
The outage has resulted in a forecasted drop in June sales of around 100,000 vehicles, according to J.D. Power. The financial losses for dealerships due to the CDK outage are estimated to be $944 million over the first three weeks following the attack. This disruption has come at a crucial time for the auto industry during its busy summer selling season.
The impact of the attack on CDK’s clients has forced some dealerships to resort to pen and paper for their operations. While the disruption has slowed business in June, it is expected that many transactions that were delayed in June could potentially be finalized in July. CDK has resumed fielding customer service calls and is actively working on restoring additional applications for its clients.
The company has faced challenges in restoring its systems fully but remains committed to bringing all dealer connections back online. The attack has shed light on the vulnerabilities of software providers and the potential risks they pose to businesses relying on their services.
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