The hits keep coming for electric vehicles (EVs) in terms of both their technical realities and their popularity.
In June, I reported that a new study found that 46% of EV owners in the U.S. said they were “very” likely to switch back to owning a gas-powered vehicle in their next purchase.
Now, a group of Hyundai dealers has sued the South Korean automobile firm in Chicago federal court for allegedly inflating EV sales numbers while punishing franchises that would not participate in the scam.
The lawsuit, oiled on Friday by Napleton Aurora Imports in Illinois and affiliated franchises, said Hyundai Motor America Corp (HMA) pressured dealers to misuse inventory codes meant for “loaner” vehicles to exaggerate their sales figures.Dealers that agreed to improperly code the vehicles were rewarded by Hyundai with wholesale and retail price discounts and other incentives, according to the lawsuit.Hyundai said in a statement on Monday that it does not condone falsifying sales data and had opened an investigation after it was alerted to the allegations.The company also said it has been pursuing litigation in South Florida to terminate two Napleton-affiliated franchises there tied to a criminal sexual battery allegation.An attorney for the Napleton plaintiffs declined to comment on Monday.The complaint in Chicago accused Hyundai of fraud and violating the Robinson-Patman Act, a federal antitrust law that bars sellers from discriminating on the basis of price.
The lawsuit alleges that Hyundai’s focus on sales volume growth for EVs has misrepresented the demand in the actual market. If true, it shows that growth in the EV market is artificial and driven by internal sales manipulation rather than genuine consumer interest.
The dealers said they have been denied benefits from Hyundai. They have asked the court to award an unspecified amount of damages to cover lost sales, revenue, and profitA similar lawsuit against Chrysler in 2019 was settled by Napleton, under confidential terms, that accused Chrysler of similar sales inflation tactics.The case, titled Napleton Aurora Imports Inc et al v. Hyundai Motor America Corp, is currently pending in the US District Court for the Northern District of Illinois.
It appears the case records include a phone call that would be quite damaging to Hyundai’s case.
The lawsuit says that in a phone call — a record of which is included in the complaint — a Hyundai sales manager encouraged a dealership employee to participate in the scheme, offering extra inventory of faster-selling gasoline and hybrid models in return. Per the suit, the sales manager apologized for the “slimy” request but stated that “desperate times call for desperate measures.””We’re kinda up against the wall and we gotta hit a number for the press and for the Koreans,” the transcript quotes the manager as saying. “So if you can help out in any way, I can help you by giving you those pipeline cars.”
There are demands that journalists investigate the EV-fakery.
However, those “journalists” are too pushing climate change hysteria and the utopia of “green energy” to question any aspect of EV technology or its market.
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