Group 1 Automotive says CDK cybersecurity incident disrupted operations

Group 1 Automotive (NYSE:GPI) announced on Monday that the damaging cybersecurity incident recently experienced by third-party software provider CDK Global has disrupted the company’s business applications and processes in its U.S. operations that rely on CDK’s dealers’ systems.

CDK Global began to restore systems used by over 15,000 retail locations across North America over the weekend.

As part of its response to the cyber hack, Group 1 Automotive (GPI) activated its cyber incident response procedures and proactively took measures to protect and isolate its systems from CDK’s platform.

Despite the CDK service outage, all Group 1 (GPI) U.S. dealerships continue to conduct business using alternative processes until CDK’s dealers’ systems are available. The Company’s dealerships in the U.K. were not impacted by the CDK service outage.

CDK has advised that it anticipates the restoration of the dealer management system will require several days and not weeks. However, Group 1 (GPI) noted that the timing of the restoration of other impacted CDK applications remains unclear at this time. The company is unable to determine the material impact, if any, of the CDK incident and the resulting service outage at this time.

Group 1 Automotive (GPI) traded flat in premarket action on Monday.