As a tumultuous year comes to an end for CDK Global, the company has announced multi-year deals with three of the largest dealerships in the U.S. in the last few months
Since September, CDK, the leading automotive retail software provider, announced a separate agreements with Sonic Automotive, Inc., Greenway Automotive Group, and Holman Auto.
The deals were announced just months after CDK was the victim of the ransomware attacks. The Austin,TX-based company reportedly paid $25 million to cyber terrorists after it was first reported service interruptions on June 19 in an event that hampered operations at U.S and Canada dealerships. The company reported that “substantially all” of the nearly 15,000 car dealerships that use its software across North America were back online to its core management system by July 2.
Holman Deal
The most recent agreement on Nov. 18 was with Holman’s, will see the retailer continue to the CDK Dealer Management System (DMS) and the Dealership Xperience Modern Retail Suite. A set of software tools, it connects the consumer-to-dealer buying journey into a single, unified transaction to enhance the customer experience, according to a press statement from the two companies.
A customer since 2006, Holman leverages the latest innovations within CDK’s Modern Retail Suite, including an enhanced desking process, to deliver a seamless and streamlined sales transaction process that makes it easier to provide high-quality engagements with consumers both online and in-store.
“Extending our partnership with CDK is an important investment that will help ensure our retail employees have the innovative tools and resources they need to continue driving what’s right for our customers as we strive to deliver an industry-leading buying experience,” said Frank Carbone, executive vice president of retail automotive, Holman.
Greenway Agreement
Just days before the Holman deals was announced, Greenway extended its relationship with CDK to provide its 35 dealerships to use the CDK Dealership Xperience, an open and integrated platform that transforms how dealerships sell and service cars and operate their businesses in a digital world.
Greenway—ranked 20th on the 2024 Automotive News Top 150 Dealership Groups—joined CDK from a competitor in 2020. The newly signed agreement extends that partnership for its lots in Florida, Alabama, Tennessee, Georgia, Missouri, Texas, and Pennsylvania.
“Extending our partnership with CDK provides us continued access to a best-in-class integrated dealership technology platform,” said Carl Atkinson, president, Greenway Automotive Group. “CDK has been instrumental in our success, and we value the relationship. Together, we’re embracing and leveraging innovation to run Greenway’s business efficiently and profitably while providing the best customer experience possible.”
Sonic Onboard
The first deal of the threesome was announced on Sept. 30 when CDK agreed to an extension with Sonic Automotive,one of the nation’s largest automotive retailers. Similar to the Holman deal, CDK will provide Sonic dealerships with the CDK DMS and its Dealership Xperience Modern Retail Suite.
Company officials noted by continuing their partnership, Sonic Automotive dealerships can leverage CDK artificial intelligence (AI) features to better engage with consumers. This includes predictive modeling that creates visibility into a customer’s propensity to buy based on their specific purchase cycles, machine learning that helps anticipate potential vehicle service opportunities, and the new CDK AI Virtual Assistant (AIVA) that provides consumers with hyper-personalized, human-like engagement with sales and service departments.
“The automotive retail industry is constantly evolving, and we are committed to providing our teammates and guests with cutting-edge tools that make the vehicle search, purchase, and service processes as seamless as possible,” said David B. Smith, Cchairman and CEO of Sonic Automotive. “Extending our partnership with CDK gives us access to forward-thinking innovation and scalable solutions to support that commitment and drive our business forward.”
MacDonald Comments
Brian MacDonald, president and chief executive officer, CDK, noted the deal with Sonic and Greenway helps to drive digital transformation across the industry as well as showing that the company’s research and development investments are being made in areas that matter most to dealers
“CDK is uniquely positioned at the center of the automotive ecosystem, and our relationship with Sonic Automotive is a testament to the great work our team has done to help their dealerships thrive and grow with confidence as we invest to constantly evolve our solutions for our rapidly changing industry.” said MacDonald in a press statement.
Noting the longstanding relationship with Holman, MacDonald said it “is a testament to the great work our team has done to constantly evolve our solutions to improve operational efficiency, create simpler transactions, and reduce wait times during vehicles sales and service.”
