CNN
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As the ongoing systems outage at software provider CDK Global stretches into a second week, car dealerships are racking up millions of dollars in losses, according to a new estimate.
Workers across the U.S. auto industry told CNN that the software outage, which the company said was caused by a cyberattack, has made it difficult for dealers to track customer interactions, orders and sales, hurting the ability theirs to earn a living.
“It’s going to affect payroll here,” said Bernard Irvin, a salesman at a Ford dealership in Greenville, South Carolina. “Why won’t I get my normal salary? I don’t really understand what it’s about.”
The workers’ concerns illustrate how a cyberattack, even one on something as overlooked as recordkeeping and scheduling software, can cripple an entire industry.
According to an estimate by Anderson Economic Group, the collapse of the CDK system could result in an estimated $944 million in direct business interruption losses for affected auto dealers if the outage lasts the full three weeks.
The outage began last Wednesday after two cyber incidents halted the company’s systems, which provide software to nearly 15,000 car dealerships across North America, according to CDK.
In a statement on Friday, the company said it was making progress in bringing some retailers back online. Previously, the company said it did not expect the issue to be fully resolved until July.
“We have successfully brought two small groups of traders and a large group of publicly direct traders to the Trader Management System (DMS). We are also actively working to bring additional live applications – including our Customer Relationship Management (CRM) and Service solutions – and our Customer Care channels,” according to a CDK spokesperson. “We We understand and share the urgency of getting our customers back to business as usual and we will continue to provide updates as more information becomes available.”
Dozens of auto retail workers expressed concern about how the outage affected their livelihoods.
“I work at a large auto shop and this has really hurt us,” one worker wrote to CNN about the outage. “I don’t know how we’re going to get paid.”
At age 71, Norm Phillips has worked as an auto parts delivery driver for a Mercedes-Benz dealership and a Honda dealership in New Jersey for more than 21 years.
Since the malfunctioning of the CDK, he had not been able to work at all. Dealerships had not been able to see which parts needed to be delivered.
“When I asked my boss if we were still going to get paid, he didn’t answer the question,” Phillips told CNN on Thursday. “I’ve been home for a week looking for another job.”
Even if CDK resolves the issue, Phillips said he fears the possibility of another cyber attack.
“I feel like the writing is on the wall. If hackers can get into a system and take my job, I feel like it’s not the right thing to do right now,” he said. “There is no safety.”
Phillips was not alone in expressing his frustration.
“15,000 vendors is an awful lot to keep track of when you do the math,” Irvin told CDK. “It’s ridiculous.”
Irvin said he realized something was wrong with the CDK software he relies on to help potential customers when a couple interested in buying a new Ford Bronco Sport came to his dealership early last week.
“I couldn’t do anything I can do normally,” Irvin said. “I was at a complete standstill and was only able to do really basic things.”
Without CDK’s record-keeping system, Irvin also said he believed his vendor could not keep track of accurate commission payments.
“You have to make sales,” Irvin said. “Otherwise, you go home and don’t eat.”
Even without access to the software, business has continued, albeit slowly.
In the end, Irvin said it took a week to get the couple who bought the Ford Bronco Sport the bill of sale, which proves ownership of their new car. All documents had to be written by hand.
And after more than a week at home, Phillips’ boss texted him to come back to work on Friday. They planned to track shipments of some parts and hand-check collections.
“I’m surprised they didn’t come up with the method sooner!” Phillips wrote in an email. “It will be a new adventure.”