Brookfield’s CDK Posts 18% Earnings Drop as Software Fears Grow

Vehicles for sale at an AutoNation Honda dealership in Fremont, California, US, on Monday, June 24, 2024. The hack that's disrupted business at thousands of car dealerships in North America is now in the process of getting resolved, the targeted software provider CDK Global said.

Sector: Finance | Confidence: 95%
Source: https://www.bloomberg.com/news/articles/2026-02-25/brookfield-s-cdk-posts-18-earnings-drop-as-software-fears-grow

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Council (5 models): Brookfield’s earnings decline reflects a direct capital‑allocation exposure to CDK Global’s operational‑technology risk, while the ransomware outage depresses auto‑loan origination and reshapes credit‑risk profiles for lenders. Insurers confront a spike in cyber‑insurance claims, revise underwriting standards, and grapple with delayed data flows, whereas dealerships endure reduced foot traffic, underused showroom space, and lower lease revenues. Staff across the dealer network face workflow disruptions and manual workarounds, lowering productivity. The incident aligns with a broader pattern of attacks on automotive SaaS providers and prompts regulatory guidance and a shift toward alternative dealer‑management platforms, highlighting systemic vulnerability across the sector.
Cross-sector: Insurance, Real Infrastructure, Electronic Labour

  ? What metrics indicate the speed and completeness of CDK’s system restoration across affected dealerships?
  ? How are insurers adjusting underwriting criteria, premiums, and claim‑processing workflows for cyber coverage in automotive retail?
  ? How are auto‑loan origination volumes and associated credit‑risk metrics responding to the dealership software outage?

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