Henry Noye Discusses Hyundai Lawsuit in Automotive News

Henry Noye, a partner and member of Obermayer’s Catastrophic Loss Group, was quoted in Automotive News on October 23, 2022. In the article, titled “Hyundai sued over allocation practice – N.Y. dealer says not upgrading cost him,” Henry discusses the recent lawsuit by a dealer in one of Hyundai Motor America’s largest regions against the automaker for withholding inventory, alleging it is because the store has not opted into the Korean automaker’s facility image program. 

In July 2022, in a separate but similar lawsuit between Hyundai and a dealer in West Palm Beach, Fla., the automaker asserted its right to use discretionary allocation based on whether the dealer “has invested in the brand, including facilities, and whether the dealer is involved in litigation with HMA and the nature of any such litigation.”

Henry stated that using discretionary allocation to punish and reward dealers is a common practice among manufacturers.

“They’re going to say, ‘This is voluntary, you don’t have to do this,’ but they also have the power of the purse. So when you try to do something else, you get less of a priority,” Henry told Automotive News.

Read the full article here.