A California-based Hyundai dealership has filed a lawsuit against Hyundai Motor America claiming that the automaker did not provide help to the struggling dealership despite contractual agreements and assurances that Hyundai would do everything necessary to help out the dealership during the economic downturn.
Estes Automotive Group, owner of Merced Hyundai in California, claims that the company treated them unfairly and did not act in good faith. The suit, filed in early March by Estes, seeks $30 million in losses that the dealership endured under promises from Hyundai that the company would help them weather the economic storm.
Estes claims that Hyundai strung the dealership out for more than a year promising to provided assistance as long as the dealership continued to operate. The dealership was instructed to go about its business as usual and Hyundai would take care of the financial situation. With these words, Estes continued to operate the facility at a loss counting on support from Hyundai which never came.
Hyundai Motor America has not commented on the matter, but has until the beginning of April to respond to the lawsuit. The suit is demanding a jury trial against Hyundai on the grounds of the company "engaging in a calculated scheme to bleed assets and operating capital, and ultimately destroying the business." Merced Hyundai closed its doors for good in January.
[Source: Automotive News - Sub. Req.]