Lawsuit Claims Hyundai Faked US Sales Data for Electric Cars

A recent lawsuit alleges that Hyundai falsified US sales data for its electric cars. The legal claim suggests that the automaker misled the public and investors by inflating sales figures, potentially impacting market perceptions and financial investments. The lawsuit aims to uncover the extent of these alleged practices and hold Hyundai accountable for any deceptive activities. This case highlights the importance of transparency and accuracy in corporate reporting within the automotive industry.

Boston Brand Media brings you the latest news - A group of Hyundai Motor dealers has filed a lawsuit against the South Korean automobile giant in Chicago federal court, alleging that the company inflated sales numbers for electric vehicles and punished franchises that refused to participate in the scheme.

The lawsuit, filed on Friday by Napleton Aurora Imports in Illinois and its affiliated franchises, claims that Hyundai Motor America Corp (HMA) pressured dealers to misuse inventory codes meant for "loaner" vehicles to exaggerate sales figures.

According to the lawsuit, dealers who agreed to improperly code the vehicles were rewarded by Hyundai with wholesale and retail price discounts and other incentives.

In a statement on Monday, Hyundai said it does not condone falsifying sales data and has opened an investigation after being alerted to the allegations. The company also mentioned ongoing litigation in South Florida to terminate two Napleton-affiliated franchises tied to a criminal sexual battery allegation.

An attorney for the Napleton plaintiffs declined to comment on Monday. The complaint in Chicago accuses Hyundai of fraud and violating the Robinson-Patman Act, a federal antitrust law prohibiting price discrimination.

The lawsuit claims that dealers who complied with the scheme received extra inventory of faster-selling Hyundai models, limiting customer choices and helping Hyundai present inflated sales figures to the public and investors.

It asserts that Hyundai's reported sales-volume growth for electric vehicles was not driven by market demand but by a scheme forcing dealers to report false sales.

Boston Brand Media also found that the complaint cites a Hyundai district sales manager's phone call statement: “we gotta hit a number for the press and for the Koreans.”

The dealers claim they have been denied benefits from Hyundai and are asking the court to award unspecified damages for lost sales, revenue, and profit.

In a similar case, Napleton reached a confidential settlement with Chrysler in 2019 after suing the automaker in 2016 for allegedly inflating sales figures. In 2019, Chrysler agreed to pay $40 million to the U.S. Securities and Exchange Commission to resolve claims of misleading investors over inflated monthly sales figures.

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Source: Reuters‍