financetom
Business
financetom
/
Business
/
Ripple effect from CDK hack widens as more US auto dealers flag hit
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Ripple effect from CDK hack widens as more US auto dealers flag hit
Jun 24, 2024 5:31 AM

June 24 (Reuters) - More U.S. auto dealers flagged a hit

from an outage of CDK's software system due to a cyber attack on

Monday as the company worked to restore systems used by over

15,000 retail locations across North America.

AutoNation ( AN ), a leading auto retailer in the U.S. said

the outage was disruptive and had adversely impacted its

business though its outlets remain open, continuing to sell,

service, and buy vehicles.

"As the incident is ongoing, the full scope, nature and

impact of the incident is not yet known," AutoNation ( AN ) said.

The company and peer Group 1 Automotive ( GPI ) said they

were using alternative processes such as manual paperwork to

conduct their business. Both said they had taken precautionary

steps to protect their data.

"The timing of the restoration of other impacted CDK

applications remains unclear at this time," Group 1 said in a

statement.

Bloomberg News reported on Friday that a group of hackers

claiming responsibility for the attack on CDK's software systems

had demanded millions of dollars in ransom to put an end to the

hack.

Though auto retailers have not outlined any sales hit,

analysts have flagged a possible impact. "We note some potential

risk to late-June (U.S. auto sales) volume from the reported CDK

dealer disruptions," Citi analysts said in a note last week.

Auto retailer Sonic Automotive ( SAH ), last week, said the

CDK outage was likely to have a negative impact on its business

operations until the systems were fully restored.

Penske Automotive ( PAG ) said its Premier Truck Group

business had implemented business continuity plans in response

to the outage.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Merck Completes $10 Billion Acquisition of Verona Pharma
Merck Completes $10 Billion Acquisition of Verona Pharma
Oct 7, 2025
07:09 AM EDT, 10/07/2025 (MT Newswires) -- Merck ( MRK ) said Tuesday it has completed its $10 billion acquisition of Verona Pharma ( VRNA ) . Verona Pharma ( VRNA ) is no longer listed or traded on Nasdaq and becomes a wholly owned Merck ( MRK ) subsidiary, the company said. The acquisition is expected to negatively impact...
French Political Risks Intensify and Weigh More Heavily on Euro, Says Mitsubishi UFG
French Political Risks Intensify and Weigh More Heavily on Euro, Says Mitsubishi UFG
Oct 7, 2025
07:08 AM EDT, 10/07/2025 (MT Newswires) -- The euro (EUR) has underperformed at the start of this week alongside the yen (JPY), said MUFG. It has resulted in EUR/USD falling to an intra-day low on Monday of 1.1652, wrote the bank in a note to clients. The euro has been undermined by the pick-up in political uncertainty in France and...
UK's Jaguar Land Rover to restart some factories after cyberattack shutdown
UK's Jaguar Land Rover to restart some factories after cyberattack shutdown
Oct 7, 2025
* Engines, batteries units restart on Wednesday * Main production lines restart later this week * Offers qualifying suppliers upfront cash payment for parts * Quarterly sales volumes drop (Adds business minister comments in paragraphs 8-9, sales figures in paragraphs 10-11) By Sarah Young LONDON, Oct 7 (Reuters) - Britain's biggest carmaker, Jaguar Land Rover (JLR), said on Tuesday some...
James Hardie Industries Issues Fiscal Q2 Outlook; Shares Up Pre-Bell
James Hardie Industries Issues Fiscal Q2 Outlook; Shares Up Pre-Bell
Oct 7, 2025
07:07 AM EDT, 10/07/2025 (MT Newswires) -- James Hardie Industries ( JHIUF ) said Tuesday it expects fiscal Q2 adjusted earnings of $0.26 to $0.27 per diluted share. Analysts polled by FactSet expect $0.17. The company also estimated fiscal Q2 net sales of $1.29 billion to $1.30 billion. Analysts polled by FactSet expect $1.20 billion. James Hardie said the sales...
Copyright 2023-2026 - www.financetom.com All Rights Reserved