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CDK says dealers will regain full DMS access by July 4
Anna del Villar
July 02, 2024
After nearly two agonizing weeks of CDK Global outages caused by a debilitating ransomware attack, CDK has announced that all of its dealership partners will have access to its core DMS in the next 48 hours.
Driving the news: “We are continuing the phased approach to the restoration process and we are rapidly bringing dealers live on the core DMS. We anticipate that all dealers will be live by late Wednesday, Jule 3rd or early morning Thursday, July 4th,” read a statement from CDK.
Flashback: The attacks on CDK on June 19, forced thousands of dealerships to go old-school, resorting to pen and paper and other manual processes to close deals and complete service.
The good news: Dealers were, unsurprisingly, resourceful, resilient, and creative. Check out how the automotive retailing community came together to lend and hand and support one another.
CDK CEO Brian MacDonald acknowledged this as well in an open letter to customers. The letter reads, in part:
“Over the past several days, I have spoken to and exchanged countless emails and texts with many dealers, OEMs, and partners. I have never in my life been so humbled and grateful for the offers of assistance, advice and shared compassion to get through this together for the benefit of the industry.
Similarly, as I write this, I am witnessing the heroism of each of you and your dealership team members doing whatever it takes to serve your customers. Just another reminder that the automotive industry is incredibly resilient.”
Between the lines: Despite restoring dealerships faster than many experts predicted, analysts expect the outages to cost the industry anywhere from $605 million to $944 million. In a recently published note, J.P. Morgan analysts predict that some of the largest publicly traded auto dealer groups (Lithia, Asbury, etc.) will see a 7% to 10% hit on earnings per share in Q2.
Looking ahead: As OEMs and dealer groups report monthly and quarterly sales, we’ll likely see lower-than-expected numbers. What will be interesting to watch is if there is indeed a meaningful loss of sales and service or if they have simply been deferred to July/Q3.
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