Auto dealers face software outage after provider hit by cyber incidents

CDK Global provides software to auto dealerships

CDK Global, a company that provides software to auto dealerships, fell victim to a second cyber incident in as many days, leading to outages nationwide.

The company informed dealers that it is "once again proactively shutting down most of our systems" in response to an "additional cyber incident" that happened Wednesday night. 

Automotive News first reported on the cyber incident.

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CDK's "dealers’ systems" will be offline Thursday "at a minimum" due to the incident as it works with "third-party experts" and determines the impact, the company said in an email to customers.

New cars dealership

New cars sit on the lot of a dealership. (iStock / iStock)

FOX Business reached out to CDK Global for comment.

It marks the second time that CDK Global has disclosed a cyber incident this week. The first, reported Wednesday, also prompted the company to temporarily take systems offline.

RISK OF CYBER INCIDENTS WEIGH HEAVILY ON BUSINESSES FOR 2024, REPORT FINDS

The company said later Wednesday that its core dealer management system and digital retailing solutions had been restored.

CDK Global logo

The CDK Global company logo seen displayed on a smartphone. ( Igor Golovniov/SOPA Images/LightRocket via Getty Images / Getty Images)

Its customers include more than 15,000 retail dealer locations across North America.

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Cyber incidents can pose a big risk to businesses. A report released in January by Allianz Commercial identified cyber incidents as 2024’s "top business risk" based on a survey of over 3,000 businesses, industry trade organizations, risk management professionals and others. 

It topped other threats like business interruptions, natural catastrophes and regulatory changes.

FOX News' Matt Finn and Reuters contributed to this report.