AutoCanada, fighting to bring itself back to profitability, and CDK, recovering from the financial and reputational sting of a devastating cyberattack, are in it together.

The dealership software provider announced a long-term extension of its agreement with AutoCanada, which operates 83 franchised dealerships and six RightRide used car stores in eight Canadian provinces and the U.S. state of Illinois.

“As a CDK customer of more than 20 years, our partnership continues to stand the test of time,” AutoCanada executive chairman Paul Antony said. “With proven solutions that scale and forward-thinking innovation, we know we can depend on CDK to provide the tools necessary to create exceptional guest experiences.”

In a news release, CDK said the extension allows AutoCanada to “further leverage the depth and breadth of CDK software … to enhance productivity, improve operational efficiency and drive profitable growth.”

CDK president and CEO Brian MacDonald said the continuation of the long relationship between the companies “is a testament to the work our team does every day to drive innovation that better connects dealers, OEMs and consumers. We look forward to making our bond with AutoCanada stronger than ever.”

AutoCanada is the second large dealership group to renew its commitment to CDK in the past two weeks, joining U.S.-based Sonic Automotive, which operates more than 100 locations in 24 states.

CDK’s software, used by the majority of franchise dealerships in North America, was shut down for two weeks in June by a ransomware attack, a disruption that affected thousands of dealerships and cost the retail industry more than $1 billion, according to the Anderson Economic Group.

During AutoCanada’s second quarter earnings call in August, Antony cited the CDK outage as a factor in the dealership group’s poor financial performance, which included a net loss of $33.1 million, estimating it accounted for “15 to 20 percent of the EBITDA reduction.”

AutoCanada is currently working with management consulting firm Bain & Company on a financial restructuring plan reduce costs and enhance profitability, which so far has included the sale of two franchised dealerships, the closing of seven RightRide locations and temporary credit relief from its lenders.

CDK introduces product certification program

CDK announced it has launched its new software certifications and courseware, designed to “equip dealership employees with the skills and credentials needed to excel in today’s rapidly evolving consumer vehicle purchase and service journey.”

The company said the comprehensive certification program for U.S. and Canadian dealership employees is a first for the auto retail industry. It offers training in the CDK product portfolio designed to build and strengthen their professional career paths specific to their role and the CDK products they use.

CDK University currently offers 10 certifications, including dealership operations accounting solutions and fixed operations parts and service solutions. The company has plans for more than 100 certifications spanning every department and employee role in automotive and heavy truck dealerships.

CDK said its program is curated from a library of more than 900 micro-credentialed courses in a wide range of skills, roles and CDK product combinations.

Chief customer officer KAM McManus said the CDK University certification program is “part of our commitment to helping dealership employees develop as skilled automotive retail professionals through rigorous testing and validation of their skillsets.”

“Our certification courses are designed to meet the demands of the industry and help combat attrition,” she said, “while identifying qualified talent for increased retention and employee satisfaction in a world of constrained resources.”

According to the new 2024 CDK Dealership Workplace Study, dealership staff ranked the ability to acquire new skills among the top three key factors to job satisfaction, along with benefits and compensation. The research showed 27% of former dealership employees surveyed cited limited career advancement opportunities as a reason for leaving the auto retail industry.

CDK said its certification program includes flexibility, with classes available live online and on demand.