New Lawsuit Claims Car Dealers Were Pressured to Lie About EV Sales

July 11, 2024

A new lawsuit filed in Chicago claims that Hyundai pressured car dealerships to lie about the number of electric vehicle (EV) sales. The lawsuit goes on to claim that Hyundai even put out multiple press releases promoting fake numbers to show a growth in EV sales. 

The Verge reports, 

“The lawsuit, which was filed in federal court in Chicago by Napleton Aurora Imports in Illinois and affiliated franchises, says that Hyundai has issued numerous press releases touting the “fake” numbers that purport to show year-over-year growth in EV sales. Dealers who declined to participate in the alleged ruse were put at a competitive disadvantage, including being forced to push unpopular vehicles or denied wholesale price discounts for customers.”

The alleged scheme asked the auto dealers to report unsold vehicles as falsely sold or placed as a loner service, eventually reversing the sale at the start of the next month.

“The lawsuit cites transcripts from phone calls involving Hyundai sales managers pressuring a dealership employee to take part in the scheme. The sales manager said “he was ‘kinda up against a wall we gotta hit a number for the press and for the Koreans,’” the suit says. The sales manager also said “he felt ‘slimy for even proposing this,’ but [Hyundai Motor America] was asking dealers to ‘steal some inventory.’”

It is disgraceful that a large company would put car dealers in such a hard position. In November, over 3,000 auto dealers sent a letter to President Biden asking to pause electric vehicle mandates. If consumers or car dealers agree on one thing, it is that they do not want EVs.