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Collision Repairers Feel Downstream Effects of CDK Global Cyberattack By Paul Hughes Autobody News Ripples from the late June ransomware attack on auto dealership software provider CDK Global spread to the independent collision repair shops that buy OEM parts from their local dealerships, which struggled with a supply chain disruption on a scale not seen before.
them — a $100,000 GMC Denali is waiting on door clips, which nobody is sure are in the warehouse. In the days following the attack, he was able to take delivery of “$20,000 worth of parts, and it’s on a paper ticket” because dealer computers were down, forcing them to revert to manual processes, causing significant operational slowdowns and customer service delays.
42 YEARS
Vol. 13 / Issue 11 / August 2024
REGIONAL NEWS
Midwest Trade Show Helps Collision Repairers Work On Their Businesses By Stacey Phillips Ronak Autobody News
Body shop owners, managers and staff had an opportunity to participate in hands-on projects, industry training and meetings with vendors at The Midwest Collision Repair Trade Show & Conference, held May 31-June 1 in Kansas City-Overland Park, KS. The third annual event was hosted by the Nebraska Auto Body Association and Missouri Auto Body Association, in collaboration with several Midwest body shop professionals. “We all have the same pain points, so it’s very important to come together and realize you’re not alone, and you don’t have to be the expert in all things,” said Gina Cotton,
executive director of the Nebraska and Missouri auto body associations, who coordinated the event. “We might live in different areas, but we all face the same issues and strive to
Pictured, left to right, are Mike Anderson from Collision Advice, Tyler Claypool from Optima Worldwide, and Sheryl Driggers from Collision Advice. l CONTINUED ON PAGE 14
REGIONAL NEWS
Kious Kountry Auto Collision Center Inc., in Waukon, IA, immediately upped its liability insurance to cover the uptick in vehicles sitting on its property, waiting for parts the shop couldn’t order from dealerships in the wake of the attack.
“It’s caused huge disruptions — massive problems across the country,” said Beau Bennett, owner of Kious Kountry Auto Collision Center Inc., a 16,000-square-foot shop in Waukon, IA, that relies on two dealers for parts, as “95% of the parts I put on are OEM,” he said. Bennett had to immediately boost liability insurance as the number of vehicles stored onsite at his shop grew, held up by the sudden inability to get some of the parts to finish
“It’s not [dealers’] fault,” Bennett said. He’s worked with his vendors for 30 years and intends to stick with them. In the late night hours of June 18, continuing through June 21, Illinoisbased CDK Global Inc., a software and data provider to 15,000 automotive dealerships, was hit by several cyber attacks, leading CDK to shutter its system, including software, data l CONTINUED ON PAGE 30
Michigan Bill Aims to Ease Burden on Auto Repair Shops Michigan lawmakers are considering Senate Bill (SB) 867, introduced in May by Sen. John Cherry, D-27. The bipartisan legislation seeks to simplify the operational and regulatory burdens faced by auto repair shops. The bill proposes that a motor vehicle repair business with multiple facilities can register all locations under a single registration and number if the additional facilities are within reasonable proximity, serve as extensions of the main facility,
and do not operate independently. This change could save small businesses up to $500 per facility in redundant registration fees and eliminate the need for duplicative customer documentation and exterior signage. Another significant provision of SB 867 would allow repair businesses to renew their registration every four years instead of annually, reducing the administrative burden on shop owners and freeing up more time l CONTINUED ON PAGE 21
INSIDE THIS ISSUE 20
4
Columnist Mike Anderson: Post-Crash Inspections Find Multiple ‘Deformed’ but Undeployed Airbags Columnist Abby Andrews: Finding Your Collision Repair Shop’s Niche
Could Be Key to Success
10
Columnist Stacey Phillips Ronak: How to Ensure Your Collision
24
Columnist John Yoswick: Collision Shop Owners Create Work-Life
Repair Business Has a Future
Balance, Offer Superior Benefits to Attract, Retain Techs
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