A former Monticello truck dealer has sued Hyundai Motor America for refusing to transfer its car dealership to another truck dealer for lack of experience in selling sedans in a market that has shifted to trucks.
Arthur Glick Truck Sales Inc. accused Hyundai of violating the federal Automobile Dealers Day in Court Act, in a Feb. 11 complaint filed in U.S. District Court, White Plains. It is demanding $750,000 from the automaker.
Arthur Glick began selling vehicles in 1958, according to the complaint, and he opened the Monticello, Sullivan County truck dealership in 1967.
For many years the business was all about trucks, from tractors to refrigerated trucks to pickups and including brands such as GMC, Kenworth and Massey Ferguson.
In 2006, Glick and his son, Todd, the general manager, decided to add passenger cars, the complaint states, and they signed a franchise deal with Hyundai.
Todd Glick, who was designated as the dealer operator for Hyundai, had never owned or operated a car dealership.
In 2020, Arthur Glick Truck Sales made a deal to sell its assets to Gabrielli Truck Sales, a multi-brand truck dealership with shops in Connecticut, New Jersey and New York.
Last year, Glick’s Kenworth and GMC franchises went to Gabrielli. But Hyundai, according to the complaint, denied transfer of the franchise because Gabrielli had no experience owning and operating a new car dealership.
Glick argues that its sales agreement with Hyundai, revised or amended six times since the original deal, as well as  Hyundai’s sales and service application, dealer guide and policies, do not require new car dealership experience.
What’s more, the complaint states, “the passenger vehicle market has shifted dramatically away from sedans and toward various types of trucks — including SUVs, pickup trucks, and crossover vehicles.”
Hyundai makes compact cars, sedans, crossover vehicles, and SUVS, including the Santa Cruz, a mid-sized pickup truck.
In 2020, according to the complaint, pickup trucks outsold all other vehicles in the passenger vehicle market.
“The bright line between trucks and cars no longer exists,” a Gabrielli executive said in an April 2020 letter to Hyundai. “The role of the pure sedan has significantly diminished, giving way to crossovers, SUVs and pickup trucks.”
Three weeks later, according to the complaint, Hyundai refused to reconsider the transfer.
Glick says Hyundai failed to act in good faith, has imposed unreasonable restrictions on transfer of assets and based its rejection on inconsistent and inaccurate grounds.
Hyundai spokeswoman Michele Tinson declined to respond to the complaint, citing company policy on litigation.
Syracuse attorney John D. Clopper represents Glick.
