HyundaiDealers

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.

Hyundai is shaking its money makers, spending €60 million to upgrade its dealer network in Germany, France, Italy, Spain, and the United Kingdom. Each of 2,500 dealers will spend at least €24,000 on improving their facilities, with matching funds coming from both distributors and the parent company.

The plan is called Mission Q, and it has several objectives: upgrade the dealer experience, increase customer loyalty, and move the brand away from being considered solely for value or low cost. Hyundai wants "people to think of Hyundai as a market leader in quality, SUVs, family cars and because of our sports sponsorships, and then later come to the price discussion."