Dealer Group Filed a Lawsuit Alleging That Hyundai Falsely Inflated EV Sales Numbers
Automakers are locked in a heated battle for EV supremacy in the United States, but one dealer group is alleging that Hyundai’s numbers might not be entirely accurate. Napleton Automotive Group in Illinois recently filed a lawsuit, saying the automaker pressured them to re-code unsold inventory as part of their loaner fleet.
That move would make sales figures look better without dealers moving any additional EV inventory. Hyundai also allegedly dangled allocations of in-demand models to dealers who complied and threatened to withhold vehicles from those who didn’t. Uncooperative dealers also reportedly lost access to Hyundai’s “Flex Cash” program, which gave them room to discount high-volume models.
Lawsuit documentation includes a phone call transcript, during which a Hyundai district manager told a dealer that the company is “up against the wall.” A Hyundai spokesperson stated that the company does not condone the falsification of sales numbers and said that it had opened an internal investigation. “We intend to take any and all corrective and remedial actions required based on that investigation,” they said.
Napleton alleges that Hyundai’s recent statement that it would face headwinds in the second half of the year was due to the coding scheme. It’s worth noting that the dealer group is locked in another legal battle with Hyundai in Florida, where the automaker terminated its franchise agreement due to the Napleton owner’s son being charged with sexual battery of an employee.
[Images: Hyundai]
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Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.
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