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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. 15 / Issue 6 / August 2024 REGIONAL NEWS
Lithia Motors Acquires Top Buick GMC Dealerships in Memphis
Lithia Motors, based in Medford, OR, purchased Memphis, TN-based Sunrise Auto Group’s premier Buick GMC dealerships, in a deal announced by Kerrigan Advisors, which represented Sunrise Auto Group. The transaction involved Sunrise Wolfchase Buick GMC, the No. 1 Buick GMC dealership in Memphis, and Sunrise Buick GMC Collierville. The acquisition marks Lithia Motors’
entry into a new market, aligning with its growth strategy and expanding its footprint in the high-demand Southern states. The dealerships’ strong performance and the favorable economic environment in Tennessee promise continued success under Lithia’s ownership. Bob Berkheimer started Sunrise Auto Group 35 years ago in Memphis, the third largest metro area in the
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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
North Carolina Vet Receives Refurbished Car from NABC Recycled Rides
“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
U.S. Army veteran Samara Joseph received a fully refurbished 2021 Kia Forte, a gift that has transformed her daily life and independence, presented by the National Auto Body Council (NABC) Recycled Rides program in collaboration with GEICO and Caliber Collision. Joseph, who is currently pursuing her associate degree, has been facing challenges due to a medical condition that limits her mobility. Prior to the June 26 donation
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in Waxhaw, NC, she relied on expensive rideshares and car rentals for her transportation needs. “I went around to every table to thank people for this gift,” Joseph
INSIDE THIS ISSUE 22
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
9
Columnist Stacey Phillips Ronak: How to Ensure Your Collision
16
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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