Navigating the CDK Global Cyberattack: Challenges Faced by Independent Auto Repair Shops
The recent cyberattack on CDK Global has created significant disruptions across the automotive industry. As a leading provider of cloud-based software to auto dealerships, CDK’s systems play a critical role in the daily operations of many dealerships and independent auto repair shops, including Topel's Towing and Repair. The attack, which occurred on June 18 and 19, 2024, has left many businesses struggling to maintain their usual levels of service and efficiency.
About CDK Global
CDK Global is a leading provider of integrated technology solutions to the automotive retail industry. The company offers a comprehensive suite of software and services designed to help dealerships manage their operations more effectively. These solutions include Dealer Management Systems (DMS), Customer Relationship Management (CRM) tools, service and parts management, inventory control, and digital marketing services. CDK Global's technology is widely used by dealerships to streamline processes, improve customer interactions, and drive overall business performance. Serving over 15,000 dealerships worldwide, CDK Global plays a crucial role in the day-to-day functioning of automotive businesses, making its systems an integral part of the industry's infrastructure.
The Impact of the Cyberattack on Topel’s Towing and Repair
Operational Challenges
Tara Topel, co-owner of Topel's Towing and Repair, describes the current situation as extremely challenging.
Without access to CDK's digital systems, Topel said the shop’s parts distributors are writing things by hand, including purchase orders and invoices. On top of that, costs for parts cannot be confirmed instantly. This has led to a significant increase in uncertainty and reliance on estimations rather than precise data.
"There’s a lot of uncertainty because we’re just trusting that the way that they’re doing it is going to be right, but I think they’re all just reacting, and each dealership is handling it a little bit differently,” Topel explained.
Longer Wait Times for Customers
The shift to manual operations has also resulted in longer wait times for customers. Parts suppliers, overwhelmed by the increased volume of phone calls and manual orders, are struggling to keep up. This delay has a trickle-down effect, slowing down repair times and extending customer wait times significantly.
“I’m sure that the (parts) dealerships are making sure that the (auto) dealerships are taken care of,” Topel said. “I’m sure that they’re taking higher priority, but when an independent (auto shop) calls, we’re probably lower on the totem pole, and that’s why it’s taking so long. Things that normally would have happened in minutes, it’s now taking hours.”
Supply Chain Issues
The cyberattack has disrupted the entire supply chain. Parts suppliers are facing difficulties in answering phones and processing orders throughout the day, causing delays in receiving parts. This disruption has directly impacted the scheduling and efficiency of shops like Topel’s Towing.
Efforts to Mitigate the Impact
Despite these challenges, Topel’s Towing and Repair is committed to maintaining the highest level of service possible.
Topel said the attack has impacted the overall efficiency and communication with clients regarding the availability of parts, but the team is working diligently to manage the increased workload and ensure that communication with clients remains as smooth as possible.
“We’re on top of it,” Topel said. “We understand what’s going on.”
Long-Term Concerns
Topel also expressed concerns that the repercussions of this cyberattack will continue to affect operations even after the systems are restored.
“It’s going to be really confusing once the computers do get back up and running,” she said. “We’re going to have to re-assess our billing and everything. It’s a lot.””
Looking Ahead
CDK Global has made strides in restoring its systems, with a phased approach to bringing dealerships back online. The company anticipates that all dealer connections will be live by early July. This gradual recovery is crucial for ensuring that systems are secure and fully functional before being widely deployed again (CBT News) (SC Media) (CBT News).
As CDK continues its recovery efforts, independent auto repair shops like Topel’s Towing and Repair remain resilient, adapting to the ongoing challenges and finding ways to serve their customers under difficult circumstances. The experience highlights the critical importance of cybersecurity and the need for robust contingency plans to mitigate the impact of such disruptions in the future.
Contact Topel’s Towing and Repair
By understanding the broader implications of the CDK Global cyberattack, we can better appreciate the efforts of independent repair shops like Topel’s Towing and Repair to navigate these challenging times and continue providing essential services to their communities. Visit Topel’s Towing and Repair at 1110 S Main St, Lake Mills, WI 53551 or call 920-648-8115.
