Lawsuit Alleges Hyundai Conducted “Secret Program” With Dealers To “Inflate” EV Sales

Napleton Aurora Imports in Illinois recently filed a lawsuit in federal court in Chicago, alleging that Hyundai pressured US auto dealers to “artificially inflate its publicly reported sales” of electric vehicles, creating a “false narrative” for consumers.

The suit, Napleton Aurora Imports Inc et al v. Hyundai Motor America Corp, claims Hyundai instructed some dealers 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 suit, filed by Napleton Aurora Imports Inc. and other Hyundai franchises, detailed how there was an audio recording “demonstrating the existence of this scheme” with a dealer and district sales manager:

“We gotta hit a number for the press and for the Koreans.”

The suit alleges that Hyundai would reward dealers with “unlawful” perks, price discounts, and allocations of popular models in exchange for faking the sales numbers for EV cars. 

Boosting fake EV sales allowed Hyundai to pump out a “press release touting its increased year-over-year sales and its growth in the electric vehicle (EV) sector.” 

“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. 

It seems like a classic case of “fake it till you make it.” This intriguing lawsuit raises the possibility that the demand for EVs reported in the corporate media might be inflated.