Group claiming cyberattack on US car dealerships demand millions of dollars

  • The auto retail technology and software provider, CDK, reportedly planned to pay the ransom.
Vehicles are displayed for sale at a General Motors Co. Buick and GMC car dealership in Woodbridge, New Jersey, US (Bloomberg)
Vehicles are displayed for sale at a General Motors Co. Buick and GMC car dealership in Woodbridge, New Jersey, US

A group of hackers claiming responsibility for a cyberattack on CDK's software systems has demanded millions of dollars in ransom to put an end to the hack, which affected auto dealers across the United States, Bloomberg News reported on Friday. The group behind the attack is believed to be based in Eastern Europe, according to the report, which cited people familiar with the matter.

The auto retail technology and software provider planned to pay the ransom, Bloomberg News reported. CDK, which provides software to car dealerships, did not immediately respond to a Reuters request for comment.

Also check these Cars

Find more Cars
Mahindra Ekuv100 (HT Auto photo)
UPCOMING
BatteryCapacity Icon40 kWh Range Icon150 Km
₹ 8.25 - 10 Lakhs
Alert Me When Launched
Honda City Hybrid (HT Auto photo)
Engine Icon1498 cc FuelType IconMultiple
₹ 19 - 20.55 Lakhs
Compare
View Offers
Mahindra S204 (HT Auto photo)
UPCOMING
₹ 12 Lakhs
Alert Me When Launched
Bmw 5 Series (HT Auto photo)
Engine Icon2993.0 cc FuelType IconMultiple
₹ 63.40 - 73.50 Lakhs
Compare
View Offers
Mg Hector Plus (HT Auto photo)
Engine Icon1956 cc FuelType IconMultiple
₹ 17 - 22.76 Lakhs
Compare
View Offers
Land Rover Discovery Sport (HT Auto photo)
Engine Icon1999.0 cc FuelType IconMultiple
₹ 65.30 - 67.95 Lakhs
Compare
View Offers

U.S. auto retailers Sonic Automotive and Penske Automotive flagged a hit to their operations on Friday, as CDK experienced a third consecutive day of outage.

In an emailed statement, Ford said that there was an industrywide system outage for dealers who use CDK.

"However, many Ford and Lincoln customers are able to receive sales and service support due to alternative processes available to our dealers," Ford said.

Sonic said its dealerships were open and it was working to minimize the disruption. The company said it was unable to determine if the outage would affect its financial condition, but that it did have a "negative impact" on its operations.

Penske said its Premier Truck Group business, which sells new and used commercial trucks, also uses CDK's disrupted dealer management system.

"Premier Truck Group has implemented its business continuity response plans and continues to operate at all locations through manual or alternate processes," Penske said.

The commercial truck dealership business has lower unit volumes than Penske's automotive dealership business, which does not rely on CDK's software.

Separately, Kia America told Reuters it was working with affected dealers to reduce the impact of the outage and continue towards "business as usual".

CDK on its website says it works with more than 15,000 retail locations across North America.

First Published Date: 22 Jun 2024, 12:30 PM IST
NEXT ARTICLE BEGINS

Check Latest Offers

Please provide your details to get Personalized Offers

Choose city
+91 | Choose city
Choose city

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy
Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.