According to foreign media reports, several Hyundai dealers have filed a lawsuit against the Korean automotive giant in the Chicago federal court, accusing it of inflating electric car sales data and penalizing franchise stores that refuse to participate in the scheme. On July 5, Napleton Aurora Imports company and its affiliated franchise stores in Illinois filed a lawsuit against Hyundai, alleging that Hyundai USA pressured dealers to misuse inventory codes for “loaner” vehicles to inflate sales numbers. The lawsuit claims that dealers who agreed to improperly code vehicles received rewards from Hyundai, including wholesale and retail price discounts, and other incentive measures.
The lawsuit accuses Hyundai of fraud and violating the Robinson-Patman Act, a federal antitrust law that prohibits price discrimination by sellers. Dealers who “cooperate” with Hyundai get extra inventory of popular models, depriving customers of choice. Hyundai emphasized growth in electric car sales to mislead the public and investors. The lawsuit quotes a Hyundai regional sales manager saying, “We have to create a number for the media and Koreans.”