The Hyundai Dealer Exposes the Company’s Surprising Sales Scam

The Hyundai Motor Group, currently the world’s third-largest automaker after Volkswagen and Toyota, is facing allegations of sales figure manipulation from some of its US dealers.

A group of dealerships under Napleton Aurora Imports has filed a lawsuit against Hyundai in a Chicago federal court. They accuse the automaker of pressuring dealers to misuse inventory codes meant for “loaner” vehicles and recognize them as sold, only to reverse the code when an actual sale occurred.

This created artificial sales figures, both internally and externally. In return, dealers participating in this scheme would benefit from Hyundai, including purchasing cars at lower prices, better vehicle allocation, and receiving bonuses.

It is not the first time that the Napleton Aurora Imports group has sued an automaker for sales figure manipulation. In 2019, the group won a lawsuit against Chrysler for similar allegations. Notably, Chrysler also agreed to pay a $40 million penalty to the US Securities and Exchange Commission (SEC) in the same year for allegedly providing misleading information to investors through inflated monthly sales figures.

One of the pieces of evidence presented by the Hyundai dealers is a recorded phone call. In it, a regional sales director is alleged to have said, “In difficult times, drastic measures must be taken… we must achieve numbers that the press and Koreans will know.”

The director also proposed that electric vehicles (EVs) were the perfect choice for this scheme as the “loaner” code would fit them better.

Hyundai has stated that it is investigating the matter and does not tolerate the manipulation of sales data. The automaker declined to comment further on the issue. It is unclear how many vehicles were “sold” through this method at Hyundai dealerships. However, more information may come to light as the lawsuit proceeds.