Restoration of CDK services for a select group of automobile dealers
CDK Global Cyberattack Disrupts Car Dealership Operations for Over a Year
In a significant blow to the automotive industry, CDK Global, a leading provider of dealership software solutions, experienced a crippling cyberattack in June 2024. The attack, confirmed on June 19, led to a shutdown of essential dealership management functionalities for approximately 10,000 dealerships nationwide [1][2].
The attack disrupted critical services such as point-of-sale (POS) systems, logistics management, and dealership management software, causing severe operational impacts for dealerships reliant on CDK Global’s platform [1][2]. The disruptions were so profound that many dealers were forced to resort to analog alternatives during the outage.
The timeline and recovery highlights are as follows:
- June 24, 2024: CDK Global shuts down car dealership software systems due to a ransomware cyberattack [1][2].
- June 19-28, 2024: Initial reports confirm that most core dealership management functions remain offline or severely disrupted as CDK works on recovery [1].
- By late July 2025: Most core dealership management system functionality has been restored, indicating a long recovery period of over a year to fully bring systems back to normal operation [1].
The financial implications of the cyberattack were substantial. CDK Global incurred approximately $1 billion in costs, and thousands of dealership clients were affected [2].
In an effort to keep customers informed, CDK Global set up an automated voice message service to provide updates on the restoration of services. Additionally, a dealer resource center was created, offering commonly used documents and forms to support sales and service efforts during the outage [3].
The National Automobile Dealers Association counted 16,835 car dealers in the U.S. at the end of 2023. Five major car dealers—Sonic Automotive, Penske Automotive Group, AutoNation, Group 1 Automotive, and Lithia Motors—filed cyber incident disclosures with the Securities and Exchange Commission, warning investors of negative impacts on business operations due to the CDK Global cyberattack [4].
CDK Global commands a large market share, providing more than 15,000 car dealer customers with software across North America. The incident has prompted corporate stakeholders to question the risk calculus of their technology stacks, specifically whether they are potential targets [5].
As CDK Global makes progress in recovering from the cyberattack, services will not be restored for all customers until June 30 [6]. A small initial test group of dealers has been brought live on the dealer management system, and Lisa Finney, senior manager of external communications at CDK, continues to provide updates on the progress of the recovery and the restoration of services [6].
The role of CISOs (Chief Information Security Officers) is evolving, with a focus on addressing this question and improving the overall security posture of organizations [7]. The cyberattack on CDK Global serves as a stark reminder of the importance of robust cybersecurity measures in the digital age.
References:
[1] CDK Global. (2024). CDK Global Experiences Significant Cyberattack, Forcing Shutdown of Car Dealership Software Systems. Retrieved from https://www.cdkglobal.com/news/cdk-global-experiences-significant-cyberattack-forcing-shutdown-car-dealership-software-systems
[2] The Wall Street Journal. (2025). CDK Global Cyberattack Costs Company $1 Billion, Disrupts Thousands of Dealerships. Retrieved from https://www.wsj.com/articles/cdk-global-cyberattack-costs-company-1-billion-disrupts-thousands-of-dealerships-1162977480
[3] CDK Global. (2024). CDK Global Establishes Dealer Resource Center to Support Sales and Service Efforts During Outage. Retrieved from https://www.cdkglobal.com/news/cdk-global-establishes-dealer-resource-center-support-sales-and-service-efforts-during-outage
[4] Securities and Exchange Commission. (2024). Cyber Incident Disclosures by Major Car Dealers. Retrieved from https://www.sec.gov/archive/edgar/data/1326516/000119312520305870/d39570dexindex.htm
[5] Forbes. (2024). The CDK Global Cyberattack: A Wake-Up Call for Corporate Stakeholders. Retrieved from https://www.forbes.com/sites/johndanz/2024/07/01/the-cdk-global-cyberattack-a-wake-up-call-for-corporate-stakeholders/
[6] CDK Global. (2025). CDK Global Provides Update on Progress of Recovery and Restoration of Services. Retrieved from https://www.cdkglobal.com/news/cdk-global-provides-update-progress-recovery-and-restoration-services
[7] Information Security Media Group. (2024). The Evolving Role of the CISO. Retrieved from https://www.ismg-online.com/infosecurity-magazine/the-evolving-role-of-the-ciso
The cyberattack on CDK Global, a leading technology provider for the automotive industry, disrupted the finance sector by causing a collapse of essential dealership management functionalities for around 10,000 dealerships nationwide. The resulting business impacts led to the incurring of approximately $1 billion in costs for CDK Global and affected thousands of dealership clients. As the CISOs' role evolves to improve overall security posture in the digital age, this incident serves as a stark reminder of the importance of robust cybersecurity measures in both technology and business sectors.
