Asbury Automotive Group, Inc. (NYSE: ABG) recently announced that a cyber-attack on one of its vendors, CDK Global, has impacted certain services provided to the company and several other automotive retailers. This incident has affected various functions including sales, service, inventory, customer relationship management, and accounting.
Despite this setback, the company's ability to sell and service vehicles remains operational, albeit with some elements of its business functioning slower than normal. Notably, the company's Koons Automotive locations in Maryland and Virginia, along with its online vehicle purchasing platform Clicklane, continue to operate with minimal interruption as they do not rely on CDK's systems.
As a result of the cyber-attack, the company's business operations have been adversely impacted, with the full scope and nature of the incident still being assessed. At this time, it is uncertain whether any customer data was accessed, and the company has not determined if the incident will have a material impact on its financial condition or results of operations.
Despite these challenges, Asbury Automotive Group, Inc. remains in contact with CDK Global to assess the situation, with additional updates to be provided as more information becomes available.
As of March 31, 2024, Asbury operated 157 new vehicle dealerships, consisting of 206 franchises representing 31 domestic and foreign brands of vehicles. The company also operates Total Care Auto, powered by Landcar, and 37 collision repair centers, offering an extensive range of automotive products and services.
The company's performance in the last period should be compared with the corresponding period to illustrate the impact of the cyber-attack on its operations and financial metrics. Following these announcements, the company's shares moved 0.5%, and are now trading at a price of $229.76. For more information, read the company's full 8-K submission here.
