We wish this were a good news story, but unfortunately, it's not. Recently, two major cyberattacks hit CDK, one of the largest auto part software systems. This has slowed down and sometimes stopped our ability to order and receive new repair parts. This system is crucial for local body shops like ours and over 15,000 auto dealers across the U.S. and Canada. The disruptions have been tough, but we are working through them and will keep you updated.
CDK is essential for ordering parts and managing inventories. Due to the cyberattacks, we've had to go back to using pen and paper. While reliable, this method makes it hard to get accurate pricing and availability information for parts. Despite these challenges, our goal is to stay transparent with our customers, just as we did during the UAW Strike, the microchip shortage, and the COVID-19 shutdowns.
In addition to parts management, CDK’s software is used by car dealerships to handle sales, payroll, and general office operations. The cyberattacks have forced dealerships around the U.S. to use pen and paper for car parts, a situation expected to last several days. CDK Global, the company behind the software, reported two cyber incidents and took down its software to protect customer information. This disruption has affected how dealerships sell and repair cars.
Impact of Cyberattacks on Supply Chains
These cyberattacks show how vulnerable our supply chains can be. High-profile hacks on widely used service providers have dramatic effects on their customers. For example, a ransomware attack on UnitedHealth Group’s Change Healthcare unit disrupted revenue streams to medical providers, forcing some to furlough staff. This ripple effect highlights the fragile nature of interconnected supply chains, including in the automotive industry.
Experts emphasize the fragility of supply chains in many sectors. Despite efforts to disrupt ransomware operators, these measures have had limited impact. Ransomware groups like ALPHV bounce back after takedowns and continue their attacks. This resilience of cybercriminals shows the ongoing threat to supply chains and the need for strong cybersecurity measures.
Patience, Please
At Anderson's Autobody, we are committed to overcoming these challenges and serving our community with integrity and quality. We ask for your trust and patience as we work through this issue, and we promise to continue striving for excellence. Thank you for your support and understanding.