Hyundai Sued Over Allegations of Faking EV Sales Data

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Facts

• A group of US Hyundai dealers is suing the South Korean automaker over allegations the company inflated sales figures for electric vehicles (EVs) and retaliating against dealerships that didn't cooperate with the scheme.¹
• In the suit, Napleton Aurora Imports accuses Hyundai of pressuring dealers into misusing inventory codes for loaner cars to record more sales. Dealers that did so allegedly received more inventory of top-selling models and discounts compared to those that didn't.²
• The dealers described a call with a district sales manager who allegedly told them, 'Desperate times call for desperate measures…we gotta hit a number for the press and for the Koreans.' EVs were identified as prime candidates to use in the plot.³
• The lawsuit claims Hyundai Motors America participated in pricing and promotional discrimination and its practices were violations of the Robinson Patman Act and franchising agreements.⁴
• Hyundai, in a statement Monday, denied inflating sales figures and said that it has opened an investigation. Hyundai also said that it has been trying to terminate the contracts of two Napleton dealers in Florida over a criminal sexual battery claim.¹
• Additionally, Napleton in 2019 settled with Chrysler over an alleged sales numbers scheme that the company denied.¹

Sources: ¹Reuters, ²Just Auto, ³Carscoops and ⁴Thomsonreuters.

Narratives

• Narrative A, as provided by The Center Square. Despite massive government subsidies, consumers simply don't want to buy electric vehicles on a mass scale. Price differences, charging infrastructure, and anxieties over battery life are all reflected in an attempted gamification of the electric vehicle sales numbers. If true, these allegations prove that the electric push is an inorganic sham.
• Narrative B, as provided by CTVNews. These allegations say more about Hyundai than they do about electric vehicles. From using child labor at their factories in Alabama to being implicated in the nationwide wave of auto thefts, Hyundai has been at the epicenter of numerous controversies in the auto world and must take corrective actions.