CDK's cyber outage hits US auto dealers for second day in a row

FILE PHOTO: A hand is seen on a laptop with binary codes displayed in front of the USA flag in this illustration taken, August 19, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

(Reuters) - A cyber outage at retail technology and software provider CDK entered its second consecutive day on Thursday, impacting automobile dealers across the United States, the affected companies said on Thursday.

"The CDK outage is impacting automotive dealerships across the U.S. and Canada, including a portion of BMW Group dealers," a spokesperson for BMW North America told Reuters.

CDK told Reuters it was working to reinstate its services and get its dealers back to business "as quickly as possible".

The company, which provides software to car dealerships, briefly shut down all its systems on Wednesday, saying it was investigating a cyber incident.

"Dealers are very committed to protecting their customer information and are actively seeking information from CDK to determine the nature and scope of the cyber incident so they can respond appropriately," the National Automobile Dealers Association said.

Privately owned vehicle dealer Holman also said the outage had impacted its phone system.

Investment firm Brookfield Business Partners bought CDK in April 2022 for $6.41 billion in a cash deal, taking the last major publicly traded provider of software to auto dealers and manufacturers private.

(Reporting by Juveria Tabassum, Kannaki Deka and Nathan Gomes in Bengaluru; Editing by Pooja Desai)