2024-06-24 AUTONATION, INC. Cybersecurity Incident

Page last updated on July 15, 2024

AUTONATION, INC. initially disclosed a cybersecurity incident in an SEC 8-K filing on 2024-06-24 06:59:55 EDT.

Company Summary

AutoNation is an automotive retailer that buys and sells a selection of cars for the automotive industry.

Incident Details

Material: Unknown
Is Breach: Unknown
Records Compromised: Unknown
Data Types Impacted: No Data Types Tracked (yet)

Compromised Date:
Detected Date: 2024-06-19
Disclosure Date: 2024-06-24
Contained Date:
Recovered Date:

Attack Goal: Unknown

Costs: No Costs Tracked (yet)

Filings

8-K filed on 2024-06-24

AUTONATION, INC. filed an 8-K at 2024-06-24 06:59:55 EDT
Accession Number: 0000350698-24-000078

Item 8.01 Other Events.

On June 19, 2024, AutoNation, Inc. (“AutoNation”) was notified by CDK Global (“CDK”), a third-party provider of information systems, that it was experiencing a cyber incident impacting its systems, including the systems necessary to support our dealer management system (“DMS”), which supports our dealership operations, including our sales, service, inventory, customer relationship management, and accounting functions. We immediately took precautionary containment steps to protect our systems and data, implemented business continuity plans, and commenced a review of the potential impact of the incident, which efforts are ongoing. While the outages of CDK’s systems and our DMS have been disruptive and adversely impacted our business, all of our locations remain open, and we are continuing to sell, service, and buy vehicles, and otherwise serve our customers, through manual and alternative means and processes, albeit with lower productivity. We are in regular communication with CDK regarding the incident and the related system outages and continue to take steps to minimize any potential impact on our business and our customers. As the incident is ongoing, the full scope, nature and impact of the incident is not yet known.

8-K filed on 2024-07-15

AUTONATION, INC. filed an 8-K at 2024-07-15 06:30:37 EDT
Accession Number: 0000350698-24-000085

Item 8.01 Other Events.

As previously disclosed, on June 19, 2024, AutoNation, Inc. (“AutoNation” or the “Company”) was notified by CDK Global (“CDK”), a third-party provider of information systems, that CDK was experiencing a cyber incident impacting its systems, including the systems necessary to support our dealer management system (“DMS”), which supports our dealership operations, including our sales, service, inventory, customer relationship management, and accounting functions (“Core Functions”).

We immediately took precautionary containment steps to help protect our systems and data, implemented business continuity plans, and commenced a review of the potential impact of the incident. The incident resulted in outages of our DMS and Core Functions, causing disruption and adverse impacts to our business, including our productivity. As of the date of this filing, access to our DMS and Core Functions has been restored. Certain ancillary systems and integrations, such as those that help automate ordering, scheduling, payment, and reporting processes, remain unavailable or limited, and efforts remain ongoing to restore these. We expect to complete the restoration of all such systems and integrations prior to the end of July 2024. The unavailability or limited availability of these ancillary systems and integrations has not had, and is not expected to have, a material impact on our business.

As a result of the incident’s impacts, we currently estimate earnings per share for the quarter ended June 30, 2024, will be negatively impacted by approximately $1.50 per share, without taking into account any potential recoveries related to the incident. The estimated impact of the incident is split approximately evenly between internal estimates for lost income during the period beginning on June 19, 2024 and ending June 30, 2024, and certain one-time costs relating to the incident, principally consisting of guaranteed compensation paid to retain commission-based associates in order to protect the Company’s business, which one-time costs we expect to adjust for in calculating non-GAAP earnings per share for the second quarter. After taking into account such negative impact, we currently estimate GAAP earnings per share for the quarter ended June 30, 2024, will range between $3.15 and $3.30. These preliminary earnings per share estimates are based on information available to management as of the date of this report and are subject to change. We will release our financial results for the quarter ended June 30, 2024, on July 31, 2024, and intend to discuss those results and other information during a conference call and audio webcast that same day.

While the full scope, nature, and impact of the incident is yet to be known, we do not expect the incident to have a material impact on AutoNation’s overall financial condition or on its ongoing results of operations.

Company Information