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CDK Global CEO promises financial compensation after cyberattacks
In a letter sent to more than 15,000 dealerships yesterday, CEO Brian MacDonald acknowledged the challenges posed by CDK Cyber Attacks and assured dealers of future financial relief. The letter did not disclose specific details of the compensation plan, but MacDonald indicated that CDK’s Customer Engagement Team would provide more information.
The cyberattacks, identified as part of a ransomware event, led to a two-week shutdown that severely impacted dealership operations, including sales for the month and quarter. CDK reportedly paid the ransom and restored most DMS services by July 3. During the downtime, dealerships resorted to manual processes and are still working to reestablish third-party software connections that were disabled as a precautionary measure.
MacDonald underscored CDK’s unwavering commitment to strengthening the cybersecurity resilience of the broader dealer community. “For the industry, we are offering any dealer — regardless of whether they are a CDK customer or not — a free tool to conduct training to better prepare for potential cyber incidents and help dealership employees avoid common pitfalls,” he said.
The company is actively investigating the cause of the attacks and has not confirmed whether any data was compromised. In his letter, MacDonald expressed gratitude to affected dealers for their patience and partnership during the restoration process, noting that all major applications are now available and integrations are coming online quickly.
CDK has taken steps to protect its environment to prevent future incidents and is working with leading third-party security experts to evolve its security approach. “As a market leader, CDK is well equipped to make the continued and necessary investments,” said MacDonald.
About that, Rita CaseRick Case Automotive Group CEO and longtime CDK customer appreciated CDK’s communication and suggested a compensation plan. She suggested offering dealers a credit equivalent to three months of their services. She also noted that the industry needs to stay positive and work together.
According to industry analysts, CDK Global controls about 50% of the US DMS market.