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Agents as Guides in Storms

The wake of this summer’s DMS shutdown grants agents a chance to help dealers prepare for future disruptions.

by Hannah Mitchell
October 18, 2024
Agents as Guides in Storms

Agents can be guiding lights to connect dealers with the right tools as bulwarks against future cyberattack-induced debacles. 

Credit:

Pexels/Peter Holmboe

2 min to read


When CDK Global shut down its dealer software this summer, it threw auto retailers into a tailspin.

For an economy and an industry that’s become increasingly reliant on the latest technology to do business day to day, the incident was more than a common hiccup and affected some 15,000 stores.

Dealers documented transactions on paper as they scratched their heads about how to record everything and also meet regulators’ requirements, not to mention how they’d transfer the paper trail after their dealer-management systems were back online. 

Documentation, as compliance expert Terry O’Loughlin recently pointed out, will always be a fixture of the auto business, if for no other reason than the requirements of compliance – high technology or not.

As dealer staffs grappled with the disruption, particularly the younger ones who’ve never had to complete transactions the old-fashioned way, their industry partners stepped in in many cases to help guide them through. That kind of collaboration is a hallmark of the automotive business, and it shined in the crisis.

Given that the shutdown, which lasted a couple of weeks, stemmed from criminal activity in the form of hackers who reportedly attacked CDK twice, it served as a wake-up call for dealers. In our now technology-dependent world that bad actors can take full advantage of, it likely wouldn’t be the last time such a far-reaching interruption happens. 

Here's where agents can come in as guiding lights to connect dealers with the right tools as bulwarks against future such debacles. The aftermath, while the shutdown is still painfully fresh in dealers’ minds, is the perfect chance for agents to review available resources and discuss with their clients which best fit their needs.

Taking a proactive approach to preparing dealers for a future of blind curves will position agents as their technology mechanics.

 

 

 

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