The lawsuit filed by a group of Hyundai Motor dealers in Chicago federal court alleges that the South Korean automobile giant inflated sales numbers for electric vehicles and pressured dealers to participate in the scheme. The dealers claim that Hyundai rewarded those who misused inventory codes with discounts and incentives, while punishing those who did not comply. Hyundai denies the allegations and states that it does not condone falsifying sales data.
### Allegations of Fraud and Violation of Federal Antitrust Law
The complaint accuses Hyundai of fraud and violating the Robinson-Patman Act, a federal antitrust law that prohibits sellers from discriminating on the basis of price. Dealers who participated in the scheme were promised extra inventory of faster selling models, leading to unequal distribution and limiting customer choice. The lawsuit claims that Hyundai used this fraudulent scheme to boost its sales numbers for electric vehicles and mislead the public and investors.
### Statements from Hyundai District Sales Manager
The lawsuit cited statements from a Hyundai district sales manager who allegedly said, “we gotta hit a number for the press and for the Koreans.” This suggests that Hyundai was more focused on achieving sales targets for public perception rather than on actual customer demand. The dealers claim that they have been denied benefits by Hyundai and are seeking damages to cover lost sales, revenue, and profit.
### Past Legal Issues with Chrysler
Napleton, the dealership group involved in the lawsuit against Hyundai, previously reached a settlement with Chrysler in 2019 after accusing the automaker of inflating sales figures. Chrysler denied the claims, and the terms of the settlement were confidential. In a related action, Chrysler agreed to pay $40 million to the U.S. Securities and Exchange Commission to settle allegations of misleading investors over inflated sales figures.
### Conclusion
The lawsuit filed by Hyundai Motor dealers against the company highlights the challenges faced by franchise owners in the automotive industry. Allegations of sales fraud and antitrust violations raise concerns about the integrity of sales practices within the industry. As the case progresses in federal court, the outcome will likely have implications for Hyundai and other automakers in terms of transparency, accountability, and fairness in their dealings with dealers and customers.