AutoCanada hit by ‘cybersecurity incident’
As if the CDK Global outage wasn’t enough, AutoCanada is again dealing with a cybersecurity issue.
The dealership group said it has identified a “cybersecurity incident” that took place Aug. 11, affecting its internal IT systems.
In a news release, AutoCanada said it “took action to safeguard its network and data” immediately after detecting the incident, working with cybersecurity experts to assist with containment and remediation efforts.
An investigation to uncover the full scope, nature and impact of the incident is ongoing. The extent that any customer, supplier or employee data has been accessed, is currently unknown, the company said.
“Although our business operations remain open at this time,” AutoCanada said in the release, “the incident may result in disruptions until the relevant systems are fully restored.”
The latest issue is a major blow for a company still reeling from the ransomware attack that knocked CDK’s dealership software out of commission for two weeks in June and early July.
In its second quarter earnings call this week, AutoCanada reported a net loss of $33.1 million, a 173% drop from the $45 million profit of Q2 2023, and its adjusted EBITDA of $27 million was down $67 million (71%) year-over-year. Executive chairman Paul Antony said the CDK issue was among the significant factors in that fall.
While CDK said in a statement AutoCanada’s new cybersecurity incident is “not related in any way to the software or services provided by CDK,” Antony said AutoCanada’s response to the current incident was driven by its experience with the CDK event.
“It seems like we were, as a result of what happened with CDK, our team went ahead and started locking down things preemptively to protect the company,” he said. “And my guess is, as a result of locking things down preemptively, it triggered another event.
“We think it’s fairly sectioned off and probably not as impactful to the organization, but again, too soon to tell. But at first appearance, it seems like it’s quite contained.”
AutoCanada operates 84 franchised dealerships in eight Canadian provinces and the U.S. state of Illinois, as well as three used vehicle dealerships, a used vehicle auction business, 13 RightRide division locations, and 27 collision centers, including 11 standalone locations. The company retailed more than 100,000 vehicles in 2023.