China Hyundai dealers seek up to $135mn in compensation

A group of 30 Hyundai Motor Co (005380.KS) dealers in China plans to seek 800 million-900 million yuan ($120 million-135 million) in compensation from the South Korean automaker, the group’s leader said, claiming Hyundai cut the flow of models exported to China, resulting in dealership losses and closures.

Hyundai has been steadily increasing manufacturing of cars in China, Wang Rongzhen told Reuters on Wednesday, veering away from selling imported models to avoid hefty taxes. In doing so it has cut back vehicle supply to the roughly 40 remaining import-only dealers, 30 of which are represented in the group seeking compensation, he said.

The South Korean automaker said earlier this week it is keeping communications open in an effort to reach a solution with the import-only dealers.

Source: Reuters