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Car Dealers Warn of Business Disruptions After Cyberattack at Systems Vendor CDK Global
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Car Dealers Warn of Business Disruptions After Cyberattack at Systems Vendor CDK Global
Jun 24, 2024 10:02 AM

12:41 PM EDT, 06/24/2024 (MT Newswires) -- Car dealerships including AutoNation ( AN ) , Lithia Motors (LAD) and Group 1 Automotive ( GPI ) warned of business disruptions on Monday after a cyberattack that occurred last week at third-party information-systems vendor CDK Global.

The companies were notified of the incident impacting CDK's systems on June 19, according to their Securities and Exchange Commission filings. The attack hit CDK's software-as-a-service system that supports dealer management systems, they wrote. Sonic Automotive ( SAH ) and Penske Automotive ( PAG ) released similar disclosures on Friday.

For AutoNation's ( AN ) dealership operations, the incident impacted sales, service, inventory, customer relationship management and accounting functions, the company said in its filing. The outages have been disruptive and adversely impacted AutoNation's ( AN ) business. Its locations are continuing to sell, service, and buy vehicles through "manual and alternative means and processes, albeit with lower productivity," it wrote.

"We immediately took precautionary containment steps to protect our systems and data, implemented business continuity plans, and commenced a review of the potential impact of

the incident, which efforts are ongoing," AutoNation ( AN ) said.

Lithia Motors ( LAD ) in its filing said it activated cyber incident response procedures that include taking precautionary containment steps and severing business service connections with CDK's systems. The company experienced disruptions in North America to its CDK-hosted dealer management system but has not identified any compromise or unauthorized access of its systems or networks, according to the filing.

While Lithia has implemented mitigation plans and continues to serve customers, the incident "has had, and is likely to continue to have, a negative impact on the company's business operations until the relevant systems are fully restored," it wrote. Lithia hasn't determined whether the CDK incident will materially impact its financial conditions or operational results.

Group 1 Automotive ( GPI ) said the attack impacted business applications and processes in its US operations and that it has taken preventative measures to protect and isolate its system from CDK's platform. Its US dealerships continue to conduct business using alternative processes while Group 1's UK dealerships do not use CDK's systems and are unaffected.

CDK Group did not immediately respond to MT Newswires' request for comment. Reuters cited a company statement Sunday as saying the process of restoring its systems could take several days.

Price: 160.39, Change: -0.08, Percent Change: -0.05

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