MURFREESBORO, Tenn. (WTVF) — A widespread cyberattack has disrupted operations at thousands of auto dealerships across North America, forcing many to revert to old school methods for conducting business.
The attack has significantly impacted service and sales, including dealerships in Middle Tennessee.
Stan Norton, the managing partner and COO of City Auto in Murfreesboro and Memphis, reported that while their sales remain unaffected, their service operations have been severely disrupted.
"I've been in the business 38 years, and this is probably one of the worst events I've seen impact the entire industry," Norton said.
The disruption began last week when CDK Global, a leading provider of dealer management software, experienced back-to-back cyberattacks. These attacks have left approximately 15,000 car sellers, many in Middle Tennessee, without the necessary software to manage their sales and service operations.
CDK Global has identified the incident as a "ransom event."
This has forced many dealers to conduct business on pen-and-paper.
This method has not only slowed down operations but also affected the financial bottom line of these businesses.
"It not only impacts us as a dealership, but if the other dealerships can't sell cars, we can't produce service invoices, and we’re not collecting sales tax," Norton explained.
Although City Auto uses a different software for sales, their service department is still feeling the effects. The dealership relies on suppliers from affected dealerships to order parts for repairs, leading to delays.
"We're waiting on parts for about 25 to 30 vehicles. Our customers are just waiting because their vehicles can't be serviced without the necessary parts," Norton said.
The cyberattack has highlighted vulnerabilities within the industry and emphasized the need for better cybersecurity measures. Norton views the incident as a critical learning experience for the future.
CDK Global has informed dealerships that the software tools essential for their operations will likely remain unavailable for the rest of the month, extending the period of disruption and uncertainty for many businesses.
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