Monticello truck dealer sues Hyundai for blocking car dealer franchise

A previous Monticello truck dealer has sued Hyundai Motor The usa for refusing to transfer its car dealership to yet another truck vendor for absence of experience in marketing sedans in a industry that has shifted to vehicles.

Arthur Glick Truck Revenue Inc. accused Hyundai of violating the federal Car Sellers Working day in Court Act, in a Feb. 11 grievance submitted in U.S. District Court docket, White Plains. It is demanding $750,000 from the automaker.

Gabrielli Truck Profits, Monticello

Arthur Glick commenced selling automobiles in 1958, in accordance to the criticism, and he opened the Monticello, Sullivan County truck dealership in 1967.

For numerous years the organization was all about trucks, from tractors to refrigerated trucks to pickups and which include makes these as GMC, Kenworth and Massey Ferguson.

In 2006, Glick and his son, Todd, the typical supervisor, made a decision to include passenger cars, the complaint states, and they signed a franchise offer with Hyundai.

Todd Glick, who was designated as the seller operator for Hyundai, had by no means owned or operated a vehicle dealership.

In 2020, Arthur Glick Truck Product sales manufactured a offer to offer its belongings to Gabrielli Truck Product sales, a multi-brand truck dealership with shops in Connecticut, New Jersey and New York.

Last yr, Glick’s Kenworth and GMC franchises went to Gabrielli. But Hyundai, in accordance to the criticism, denied transfer of the franchise since Gabrielli experienced no knowledge proudly owning and working a new automobile dealership.

Glick argues that its profits arrangement with Hyundai, revised or amended 6 instances considering that the original offer, as effectively as  Hyundai’s gross sales and service application, supplier tutorial and insurance policies, do not need new vehicle dealership encounter.

What is a lot more, the complaint states, “the passenger motor vehicle market has shifted radically absent from sedans and toward a variety of forms of vehicles — which includes SUVs, pickup vehicles, and crossover vehicles.”

Hyundai helps make compact cars and trucks, sedans, crossover automobiles, and SUVS, such as the Santa Cruz, a mid-sized pickup truck.

In 2020, in accordance to the criticism, pickup trucks outsold all other cars in the passenger auto market.

“The brilliant line amongst vehicles and cars no more time exists,” a Gabrielli government mentioned in an April 2020 letter to Hyundai. “The job of the pure sedan has noticeably diminished, giving way to crossovers, SUVs and pickup trucks.”

A few weeks afterwards, according to the complaint, Hyundai refused to reconsider the transfer.

Glick suggests Hyundai failed to act in great faith, has imposed unreasonable constraints on transfer of assets and centered its rejection on inconsistent and inaccurate grounds.

Hyundai spokeswoman Michele Tinson declined to answer to the criticism, citing corporation plan on litigation.

Syracuse legal professional John D. Clopper represents Glick.