Hyundai is facing a major lawsuit from Napleton Aurora Imports and other dealers, who accuse the company of pressuring them to inflate their electric vehicle (EV) sales figures. According to the lawsuit, Hyundai allegedly instructed dealers to report unsold cars as “sold” or “loaned out,” only to reverse these transactions later. The lawsuit claims that Hyundai rewarded compliant dealers with perks and discounts while punishing those who refused to fake the numbers, creating a misleading impression of strong EV sales. This scandal raises questions about the true demand for EVs and the integrity of Hyundai’s reported sales figures.
In a complaint filed yesterday in federal court in Chicago, Napleton Aurora Imports of Illinois claims that Hyundai put pressure on US auto dealers to “artificially inflate its publicly reported sales” of electric vehicles to provide a “false narrative” to consumers.
According to the lawsuit, Napleton Aurora Imports Inc et al v. Hyundai Motor America Corp, Hyundai gave some dealers the go-ahead to “falsely report unsold vehicles as ‘sold’ to a retail customer or placed into loaner service, only to reverse the ‘sale’ the following month.”
The claim described an audio recording “demonstrating the existence of this scheme” with a dealer and district sales manager, filed by Napleton Aurora Imports Inc. and other Hyundai franchises:
Hyundai is accused of paying dealers “unlawful” benefits, price breaks, and access to popular models in return for inflating EV sales figures.
Hyundai was able to issue a “press release touting its increased year-over-year sales and its growth in the electric vehicle (EV) sector” by inflating the sales of fake EVs.
“Dealers who refuse to help HMA boost its fake numbers—like Napleton—are punished with allocations of slow-selling vehicles, and denied wholesale price discounts, allocation, and retail price discounts to offer consumers, stifling competition and harming both Napleton and the public,” the suit said.
Essentially, it appears to be a typical instance of “fake it till you make it.” This fascinating lawsuit suggests that the corporate media’s reported EV demand may be exaggerated.
Last month, GreatGameIndia reported that the Joe Biden-backed EV startup Fisker filed for bankruptcy, planning an asset sale amid a manufacturing halt. Henrik Fisker, a former Aston Martin and BMW designer, founded the company, which has now filed for bankruptcy twice.
