Seekonk, Massachusetts – A system outage from CDK Global has caused significant disruptions at a Mazda dealership, affecting various operations, notes Ryan Callahan, the general sales manager at the establishment. The outage is anticipated to have lasting financial consequences that could take months, or even years, to rectify.
The shutdown of the retail software provider has left nearly 15,000 car dealerships across North America grappling with challenges in providing services to customers. As CDK works on restoring its systems, dealerships and customers are facing long wait times, delays, and missed opportunities to make or save money.
The impact of the outage extends beyond sales, affecting the ability of dealerships to apply factory rebates and register vehicles promptly. Some dealers have resorted to analog solutions to keep operations running, but the manual processes have resulted in delays and frustrations for both employees and customers.
The Massachusetts Department of Transportation, responsible for overseeing the RMV, has not yet responded to inquiries regarding the situation. Meanwhile, dealerships are exploring alternative management systems amid concerns over the reliability of their current providers in light of recent cyber incidents.
As various industry experts weigh in on the challenges faced by dealerships, it becomes apparent that the process of transitioning to a new software system is complex and time-consuming. Businesses are locked into contracts with software providers, necessitating careful consideration and preparation before making any changes.
Major automotive retailers like Asbury Automotive Group and Rival Group1 Automotive are feeling the impact of the CDK outage on their operations, with uncertainties lingering on when normalcy will be restored. The financial implications for these companies remain unclear as they navigate through the challenges posed by the prolonged outage.