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Car Dealerships In North America Revert To Pens and Paper After Cyberattacks (apnews.com) 37

An anonymous reader quotes a report from the Associated Press: Car dealerships in North America continue to wrestle with major disruptions that started last week with cyberattacks on a software company used widely in the auto retail sales sector. CDK Global, a company that provides software for thousands of auto dealers in the U.S. and Canada, was hit by back-to-back cyberattacks Wednesday. That led to an outage that has continued to impact operations. For prospective car buyers, that's meant delays at dealerships or vehicle orders written up by hand. There's no immediate end in sight, with CDK saying it expects the restoration process to take "several days" to complete. On Monday, Group 1 Automotive Inc., a $4 billion automotive retailer, said that it continued to use "alternative processes" to sell cars to its customers. Lithia Motors and AutoNation, two other dealership chains, also disclosed that they implemented workarounds to keep their operations going. [...]

Several major auto companies -- including Stellantis, Ford and BMW -- confirmed to The Associated Press last week that the CDK outage had impacted some of their dealers, but that sales operations continue. In light of the ongoing situation, a spokesperson for Stellantis said Friday that many dealerships had switched to manual processes to serve customers. That includes writing up orders by hand. A Ford spokesperson added that the outage may cause "some delays and inconveniences at some dealers and for some customers." However, many Ford and Lincoln customers are still getting sales and service support through alternative routes being used at dealerships.

Group 1 Automotive Inc., which owns 202 automotive dealerships, 264 franchises, and 42 collision centers in the U.S. and the United Kingdom, said Monday that the incident has disrupted its business applications and processes in its U.S. operations that rely on CDK's dealers' systems. The company said that it took measures to protect and isolate its systems from CDK's platform. All Group 1 U.S. dealerships will continue to conduct business using alternative processes until CDK's dealers' systems are available, the company said Monday. Group 1's dealerships in the U.K. don't use CDK's dealers' systems and are not impacted by the incident. In regulatory filings, Lithia Motors and AutoNation disclosed that last week's incident at CDK had disrupted their operations as well. Lithia said it activated cyber incident response procedures, which included "severing business service connections between the company's systems and CDK's." AutoNation said it also took steps to protect its systems and data -- adding that all of its locations remain open "albeit with lower productivity," as many are served manually or through alternative processes.

Car Dealerships In North America Revert To Pens and Paper After Cyberattacks

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  • by Anonymous Coward on Monday June 24, 2024 @04:14PM (#64574449)
    This is hilarious.

    Car dealers outsource everything to CDK:

    One connection, over an always-on VPN to CDK's data centers, gives a dealership customer relationship management (CRM) software, financing, inventory, and more back-office tools.

    But CDK doesn't actually do anything ... it just outsources everything to someone else

    .... the company pushed most of its enterprise IT unit to global outsourcing firm Genpact in March 2023.

    • This version of the Shell Game has ten shells, all nested inside each other, and inside the tiniest, innermost shell, there, and only there, you will finally find... well, nothing at all.
    • by Anonymous Coward

      Manufacturing is the same way and it goes levels deep.

      A Korean automaker partnered with a US based software company for the self driving systems. The US company had the physical hardware built by another global engineering firm. I was hired by that engineering firm to offer on site support to the software company. I wasn't even paid directly by said firm, the engineering company contracted my position to a placement company, who ultimately signed my paycheck. My boss and "office" wasn't even in the same cou

    • First day of new job, "So when we interviewed you, you said you studied this in school so it should be familiar"

      Spends first day looking over company code

      Wait... I recognize this. I got a C on it!

    • by kackle ( 910159 )
      Turtles all the way down, eh?
  • yay pencils
  • a spokesperson for Stellantis said Friday that many dealerships had switched to manual processes to serve customers. That includes writing up orders by hand.

    If that "writing up orders by hand" part is true in the literal pen-and-paper sense, then I have no sympathy for them.

    I can see an ordering workflow that uses forms resident on local computers, with some fields available to be filled in via either data from a remote server or, optionally, via a local keyboard. That would eliminate the pen-and-paper part - you could then email the finished orders, or print and snail-mail them if email is down.

    But if you're in the position of "cloud servers are down" or "inte

    • So your argument is that car dealers need to have multiple automated means to place car orders/sell cars because, as just happened, their lone automated system failed.

      I haven't been keeping to close an eye on the auto industry IT situation, but this is probably the first time an issue of this type has EVER hit auto retailers in the last 40-50 years. Tgat they can fall back to a paper process isn't that big a deal, it's not hard to place an order for a new car, and most auto sales are handled from dealer sto

      • So your argument is that car dealers need to have multiple automated means to place car orders/sell cars because, as just happened, their lone automated system failed.

        No. My argument is that the "lone automated system" should support local input so that when the servers are available the program can still be used - with essentially the same workflow - to print out and/or email the orders.

        I haven't been keeping to close an eye on the auto industry IT situation, but this is probably the first time an issue of this type has EVER hit auto retailers in the last 40-50 years.

        CDK Global, the software provider, has only been in business for ten years. That means they grew up in the era of escalating cyber-attacks and should have made their product able to function at a basic level without access to the servers.

  • paper 4 square worksheet for the win now with more clutter on it to confuse you even more.

  • by Anonymous Coward

    So, car dealerships outsourced to one provider (CDK), who apparently outsourced it to another (Genpact).

    Now who in this chain does the security buck stop with? If a building is broken into because everything is stored in file cabinets in a front room and the doors are unlocked, it would be obvious who would have legal issues.

    Cloud providers are lucky. They have the ability to hide that they are breached, or even modify customer configurations so they can say the customer failed at keeping their pants zipp

  • by dskoll ( 99328 ) on Monday June 24, 2024 @05:54PM (#64574729) Homepage

    If CDK Global only provided software to auto dealers, then their getting clobbered by ransomware shouldn't have affected the dealers, who could happily have continued running the on-prem software, right? Right? Right... ?

    No, it seems CDK Global provided cloud services to dealers, which means they didn't own their own tools and were completely dependent on a third party (or even fourth, fifth, sixth parties...) for a vital part of their workflow.

    Cloudveat Emptor

  • this is not a value judgement as a straight observation.

    It's called sub-contracting. It's commonly done in defence, telecommunications, and hi-tech manufacturing, to name only 3 industries.
    I have my doubts they really can run their busnesses with pen and paper. How many years now? so..plus car dealership "management"... ha ha.. pretty corny ... expect error rate to go up. This reminds me a lot of seeing Amazon eat up whole industries. Everyone is dependent on Amazon, and they wrap a some marketing and logo
  • House of cards, with one card.

    Now it looks like they plan to pay the ransom. Um excuse me, that should be a) an automatic ban from US customers doing further business with CDK and b) if CDK is an actual US company, an instant revocation of their Corporate Protections.

    Our fucking capitalist Corporate-monopoly economy sucks ass.
  • by PPH ( 736903 )

    ... when the salesman says he has to take my offer back and talk to his manager, he really means it.

  • None of my dealership experiences have been good. I was robbed at worst and taken advantage of at best. The bigger they are, the more predatory they behave. I do not wish them well. It feels good to see some overdue comeuppance.
  • ... mission-critical IT, then don't do it at all. ... I guess.

    We IT experts all know this problem: A system you do not have under your own control 100% is useless for anything mission-critical. Don't put anything into the cloud that isn't safe by up-to-date crypto-standards and basic rules of data-integrity. Don't put anything in the Cloud that you can't get back out of the Cloud in a workday with time to spare. Do backups and (regularly tested) disaster-recovery, both on- and offsite. Have a fall-back sys

  • What I find most interesting about this submission is the use of the plural of "pens" in the headline. I'm by no means saying that it is grammatically incorrect; just that it's stylistically a departure from the phrase "pen and paper" as the only way I've heard it expressed my entire life.

    Of course, nobody else will probably find it the least bit interesting. As you were.

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