CDK Global, a major software provider for thousands of car dealerships across North America, plans to pay tens of millions of dollars in ransom after a cyberattack severely disrupted operations. The hacking group, believed to be based in Eastern Europe, has demanded the substantial payment, according to an anonymous source.

Since the breach was discovered on June 19, CDK has shut down its systems, resulting in chaos at approximately 15,000 car dealerships that rely on its services. CDK’s dealership management system (DMS) is integral to nearly every aspect of a dealership’s operations, including sales, service, parts, and vehicle stocking. The outage has hampered sales, delayed repairs, and interrupted deliveries across the industry, which generated over $1.2 trillion in US sales last year.

“It’s just mass chaos at this point,” said Diana Lee, CEO of Constellation, a marketing agency working with auto dealerships, on Bloomberg Television. “Dealers require a DMS for virtually all functionalities, and without it, they cannot operate efficiently.”

CDK briefly restored some services on June 19 but had to deactivate them after a second cyberattack. The company warned dealers that their systems would likely be down for several more days.

This ransom demand follows other significant ransomware attacks, including one where hackers sought $50 million from a lab services company causing outages in London hospitals, and another where UnitedHealth Group Inc. paid $22 million in extortion fees earlier this year.

CDK has not disclosed the identity of the hackers but issued a warning to customers about potential fraud attempts. “We are aware that bad actors are contacting our customers, posing as CDK affiliates to gain system access,” the company said. “Please only respond to known CDK employees and communications.”

The cyberattack has had a significant impact on the car dealership industry, with Sonic Automotive Inc. reporting likely negative effects on its operations. The company has implemented workaround solutions but has not yet determined the full financial impact.

CDK’s parent company, Brookfield Business Partners LP, experienced its worst trading day since October, with shares plunging 5.7% on Thursday and continuing to decline on Friday. Dealer groups AutoNation Inc., Group 1 Automotive Inc., and Sonic Automotive Inc. also saw their shares drop amid the ongoing disruptions.

As the situation develops, CDK’s decision to pay the ransom highlights the severe consequences and operational disruptions that ransomware attacks can inflict on critical business infrastructure.