According to a recent complaint, Hyundai allegedly pressured its American dealers to artificially “inflate” electric car sales figures. Those who complied were rewarded, while others may have been disadvantaged.
Artificially Inflated Figures at Hyundai?
In the United States, Hyundai finds itself in a delicate position. The South Korean manufacturer is accused of asking its dealers to artificially “inflate” electric car sales figures. “We need to reach a certain sales quota to look good in front of the press and the South Korean government,” according to the sales manager of one of the affected dealerships who spoke on the matter.
This does not seem to be an isolated case. According to the plaintiffs, this “secret program” is apparently applied to all the brand’s dealerships in the United States. A lawsuit has been filed in the federal court of Chicago by Napleton Aurora Imports, a Hyundai dealership in Illinois that feels it has been harmed by the South Korean firm’s policies.
American Dealers Push Back
Along with other dealers, the company claims that Hyundai has “released press releases boasting false sales figures.” Figures that claim to show growth in electric cars, when in fact it is not the case. The brand asked dealers to report unsold vehicles as sold, only to cancel the sale the following month.
The Seoul-based manufacturer allegedly implemented a system in which dealers who complied were rewarded. While those who refused to inflate their figures were “punished.” They were, for example, denied discounts. Others were forced to deal with limited stock or “unpopular vehicles,” according to The Verge.
The company asked Napleton to suspend its legal action while conducting an “internal investigation.” The dealer refused. Michael Stewart, spokesperson for the brand in the United States, stated that Hyundai does not “tolerate intentional falsification of sales data.” He mentioned that an “immediate investigation has been initiated” to “take all necessary corrective actions.”