CDK Global says small group of dealers have systems restored following hack

CDK Global said in a message to clients its system shutdown is expected to continue at least until the end of the month, but select dealers are starting to see certain applications return.

The company that provides software to car dealerships in North America does not expect to get "all dealers live" before Sunday, June 30, according an update to customers earlier this week.

"We are continuing the restoration process of our core applications and are making significant process," the update said. "Should you need to make alternate plans for your month-end financial close process, you should do so."

CDK, which continues to grapple with cyberhack and ransom demand, has been working to restore systems used by 15,000 auto dealers nationwide.

On Wednesday, spokesperson Lisa Finney said the company had successfully brought a "small initial test group" of dealers live on its dealer management system.

"Once validation is complete, we will begin phasing in other dealers," Finney said in an emailed statement. "We are also actively working to bring live additional applications—including our Customer Relationship Management (CRM) and Service solutions—and our Customer Care channels."

Rows of Toyotas are parked in a line at the world's largest auto dealership, Longo Toyota, which enjoys continued strong sales after a record quarterly report for Toyota April 24, 2007 in El Monte, California.
Rows of Toyotas are parked in a line at the world's largest auto dealership, Longo Toyota, which enjoys continued strong sales after a record quarterly report for Toyota April 24, 2007 in El Monte, California.

Group demands millions in ransom

A group that says it hacked software company CDK Global is demanding tens of millions of dollars in ransom, Bloomberg reported on Saturday.

The company intended to pay the ransom but discussions are subject to change, according to the Bloomberg report, which cited a person familiar with the situation.

The source said the group behind the hack is believed to be based in eastern Europe, Bloomberg reported.

Outages upend dealership sales and operations

Auto dealers including AutoNation and Peer Lithia Motors said they have experienced disruptions that are likely to negatively impact business, Reuters reported Monday. Some dealerships have reverted to paper methods to conduct business.

At Oxmoor Auto Group, based in Louisville, Kentucky, nearly every dealership in the network − Ford, Toyota, Hyundai among others − has had their system down since the cyberattack occurred.

This attack has dramatically impacted salespeople’s ability to process orders for customers.

Across town at Jeff Wyler Honda in Louisville, the service department has resorted to handwriting orders in an effort to fulfill service needs while the software is down. Oxmoor Toyota and Oxmoor Ford are only able to complete oil changes for customers, as the hacking depleted the dealerships' ability to do more intensive maintenance work.

What is CDK Global?

One of the leading providers of cloud-based software to dealerships in the country, CDK's software helps dealerships manage vehicle acquisitions, sales, financing, insuring, repairs and maintenance. The company's website says it offers a “three-tiered cybersecurity strategy to prevent, protect and respond to cyberattacks.”

This article originally appeared on USA TODAY: CDK Global update: As hack response continues, systems slowly return