An exclusive distributor of Hyundai-branded cars and car parts, Hyundai Motor America has filed a lawsuit in U.S. District Court for the Central District of California against a car parts retailer, Pentius Automotive Parts, for allegedly distributing grey market parts intended for foreign markets in the United States.
The plaintiff alleges that the defendant was illegally selling car parts in the U.S. which are not part of Hyundai’s authorised chain of distribution.
According to the lawsuit, Hyundai reportedly accuse the defendant of falsely describing its grey market goods as original Hyundai parts.
Hyundai Motor America is claiming that they produce motor parts to precise specifications that meet federal motor vehicle safety standards and they have been widely known with good reputation over decades.
“Hyundai-branded parts that are not sourced through its authorised chain of distribution may contain numerous material differences compared to authorised Hyundai parts. These include differences in language on packaging and labelling, production methods, weight, performance statistics, manufacturing processes and differences in safety standards and quality controls.”Hyundai Motor America reportedly said
Hyundai alleges that if an illegal grey market part is used during the repair or servicing of Hyundai vehicles, it would lead to poor performance and safety issues due to these differences.
“In fact, one of Pentius’ own former salespeople has admitted in another litigation that he understood that Hyundai’s warranty would not apply to the illegal grey market Hyundai parts being sold by Pentius, yet Pentius has failed to convey these facts to its customers,” Hyundai Motor America reportedly alleges.
The case is ongoing.
Hyundai Motor America, Inc. et al v. Pentius USA, Inc. dba Pentius Automotive Parts
|Judge:||Josephine L Staton|
|Court:||California Central District Court|
|Nature of Suit:||Trademark|
|Case Filed:||September 06, 2019|