Car dealers stuck in the slow lane after cyber woes at software biz CDK

Car dealers stuck in the slow lane after cyber woes at software biz CDK

June 24, 2024 at 02:08PM

Several US companies filing Form 8-Ks with the SEC have referenced a cyber incident affecting CDK Global, a major software provider for car dealerships. The incident has disrupted business operations, leading affected companies to deploy mitigation strategies. CDK has faced two system shutdowns and is reportedly considering a ransom payment to an Eastern European cybercrime gang.

Key takeaways from the meeting notes:
– Several US companies have filed Form 8-Ks with the SEC, referencing disruptions caused by a cyber incident at CDK, a software provider for car dealerships.
– CDK’s software supports various functions for nearly 15,000 car dealerships, and the cyber incident caused significant disruptions, prompting affected customers to deploy mitigation strategies.
– The affected companies, including Group 1 Automotive, Sonic Automotive, Penske Automotive Group, and Lithia Motors, reported varying degrees of disruption, with some resorting to pen-and-paper operations.
– Recovery timelines are uncertain, though CDK assured customers that recovery would be a matter of days rather than weeks.
– There are reports suggesting CDK is considering paying a ransom to an Eastern European cybercrime gang, though CDK has not confirmed these claims.
– CDK experienced an additional cyber incident on June 19, proactively shutting down most of its systems, and is working with third-party experts to assess the impact and provide updates to customers.

These takeaways provide a clear summary of the main points discussed in the meeting notes, allowing for easy understanding and reference.

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