Hyundai Sued By New York Dealer For Allegedly Withholding Inventory | Carscoops carscoops
Central Avenue Hyundai, of Hartsdale, New York, is suing the Korean automaker, claiming that it was being denied additional vehicles as retaliation for not performing renovations it says are not practical to its showroom.
Central Avenue Hyundai claims that it lost nearly 42 percent of its allocation in the first quarter of 2022 compared to the same period last year. None of the other 13 nearby Hyundai dealerships had allocation losses that were as steep in that time period. Central Avenue Hyundai, located in a suburb of New York City, claims that it is at a disadvantage when it comes to the program because of its tight urban quarters. It says that it spent $3 million on upgrades in 2015, something the program doesn’t recognize, and that its facility already costs $56,000 a month.
“We had a very simple view as we launched these programs… that these are all voluntary,” Robert Grafton, Hyundai’s vice president of dealer network and strategy, said. “There’s support for dealers who elect to participate in helping offset their [capital expenditure] expenses, and if a dealer elects not to participate, that’s fine as well.”
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