CDK Global Cyberattack to Cost Auto Dealers More than $1 Billion

The ransomware attack on CDK Global is expected to cost auto dealerships more than $1 billion, according to Anderson Economic Group (AEG).

The CDK Global attack last month impacted over 15,000 auto dealerships across North America. The dealerships use CDK Global’s dealer management software to run their businesses, including vehicle sales. Its software handles everything from records to scheduling.

Based on June sales results, AEG on Monday issued a revised estimate to its June 28 estimate that predicted dealers would experience $944 million in losses. According to Detroit Free Press, AEG now estimates total direct losses to car dealers in the three weeks of the cyberattack actually reached $1.02 billion.

When we last spoke with CDK Global, it anticipated having restoration completed by July 4. We couldn’t reach them for an update.

Analyzing Losses From CDK Global Attack

AEG analyzed direct losses to automotive dealers affected by the hacking and ransomware attack on CDK Global software and systems, and the resulting shutdown or impairment of operations, inability to operate systems, inability to generate orders, complete purchases or sales, and other interruptions of their normal course of business.

AEG estimated only direct losses for auto dealers who were directly affected. The losses include:

Related:CDK Global Cyberattacks Impact 15,000 Auto Dealerships, Enter 3rd Day

Dealers who were directly impacted include new vehicle dealers (passenger cars and light trucks, with some also selling heavy trucks) in the United States and Canada. Additional dealers (including heavy-truck dealers) affected by the interruption are not included in this estimate.

AutoNation, which has over 300 locations in 20 states, said it expects its second-quarter earnings will be negatively impacted by the CDK Global attack. In addition, its systems still haven’t been restored and it expects to complete restoration by the end of July. It detailed the latest in a U.S. Securities and Exchange Commission (SEC) filing.

Omri Weinberg, co-founder and chief revenue officer at DoControl, said the billion-dollar hit to car dealerships from the CDK Global attack is a “stark reminder” that in today's interconnected world, “your cybersecurity is only as strong as your weakest link - often a third-party vendor.”

DoControl's Omri Weinberg

“This isn't just about lost sales,” he said. “It's about the cascading effects of digital disruption. When your systems go down, you're not just losing revenue - you're hemorrhaging customer trust and market position. The lesson? Cybersecurity isn't an IT issue, it's a business continuity imperative. Auto dealerships - and frankly, all businesses - need to take a hard look at their digital supply chain, implement robust vendor risk management, invest in resilient systems and have a solid incident response plan because in the digital age, it's not if you'll face a cyber crisis, it's when.”