Hyundai claims customers are complaining and that the automaker is responding.
The latest US automakers to threaten dealers over raising vehicle prices are Hyundai and Genesis. Automotive News received the letters from the brands to their showrooms.
According to the letters, “We are writing now because our customers across the country are dissatisfied with certain pricing practices that, if not checked, will have an adverse impact on the health and reputation of our brand.”
Dealers shouldn’t advertise one price online, but have a higher showroom cost. They warned that high markups “damage our brands’ ability to retain and attract new customers in the long-term.”
Hyundai or Genesis can respond to dealers who do this by reducing vehicle allocations and/or removing advertising benefits. The letters stated that “we cannot stand idly and watch the actions of these dealers undo all our collective efforts to make these brands what they are today.”
Due to the continuing shortage of computer chips, vehicles are in high demand. Because buyers are willing and able to pay more, dealers are responding by increasing the price of vehicles. Some showrooms go to great lengths, asking for nearly $80,000 for a Kia EV6. This is almost $19,000 more than the sticker price.
Automakers have warned dealers against placing too much markup on vehicles. Ford, for example, suggested a two-part strategy to the F-150 Lightning. It threatens dealers’ allocations for the electric pickup if it is caught by the automaker in a shop doing something suspicious.
Ford allows dealers to make a contract for one year with customers that would prohibit the customer selling the F150 Lightning. This prohibits someone from buying an electric truck and then flipping it immediately for a profit.