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Colorado car dealers hit by nationwide cyberattack on CDK
Colorado car dealers hit by nationwide cyberattack on CDK

A statewide cyberattack on car dealerships is being felt across Colorado, but the extent of the problem varies from dealer to dealer, says Matthew Groves, CEO and president of the Colorado Automobile Dealers Association.

CDK Global, a company that provides software to thousands of auto dealers in the U.S. and Canada, was hit by two back-to-back cyberattacks on Wednesday, according to multiple news outlets. The attack was still being felt nationwide and in Colorado on Friday, affecting dealers differently.

“I’ve spoken to several dealers and it impacts them at different levels,” Groves said. “Some dealers use CDK for everything, some have a combination of CDK and another company, and some don’t use CDK at all.”

The Colorado Automobile Dealers Association represents about 270 franchises in the state, Groves said.

CDK Global is a major player in the automotive industry, providing dealers with software technology to support their daily operations – making it easier to sell, finance, insure and repair vehicles.

For merchants affected by the CDK Global attack, they may have to go back to the old-fashioned way of entering into a financing agreement with a customer, Groves said.

“They’ll just have to go back to the paper and pen contracts that the finance companies fill out by hand,” Groves said. “We’ll still be able to sell vehicles, but it’s going to take a while to write a contract by hand instead of electronically.”

CDK serves thousands of locations across the country.

A company spokesperson told the Associated Press that CKD was “actively investigating a cyber incident” and had shut down all of its systems out of an abundance of caution.

The company gave no indication when the problems with its software would be resolved.

Several major automakers told AP on Friday that the CDK outage had affected some of their dealerships, but sales operations were continuing.

Groves said there are concerns that customer data was compromised as a result of the cyberattack. The answer to those questions will likely come later.

“That’s the difficult part right now,” he said. “Now we have to wait.”

By Everly