TSLA364.270-1.93%
GM82.200-4.42%
F13.210-0.4%
RIVN14.990-0.41%
CYD35.4000.88%
HMC32.200-0.33%
TM191.530-2.38%
CVNA65.120-0.72%
PAG212.610-2.14%
LAD316.270-5.41%
AN168.290-6.59%
GPI246.420-8.53%
ABG183.060-4.85%
SAH63.660-2.29%
TSLA364.270-1.93%
GM82.200-4.42%
F13.210-0.4%
RIVN14.990-0.41%
CYD35.4000.88%
HMC32.200-0.33%
TM191.530-2.38%
CVNA65.120-0.72%
PAG212.610-2.14%
LAD316.270-5.41%
AN168.290-6.59%
GPI246.420-8.53%
ABG183.060-4.85%
SAH63.660-2.29%
TSLA364.270-1.93%
GM82.200-4.42%
F13.210-0.4%
RIVN14.990-0.41%
CYD35.4000.88%
HMC32.200-0.33%
TM191.530-2.38%
CVNA65.120-0.72%
PAG212.610-2.14%
LAD316.270-5.41%
AN168.290-6.59%
GPI246.420-8.53%
ABG183.060-4.85%
SAH63.660-2.29%

Massachusetts dealership to face Hyundai in court over new storefront

Hyundai and a Massachusetts dealership are suing each other in federal court over the proximity of a planned storefront in Danvers
Hyundai and a Massachusetts dealership are suing each other in federal court over the proximity of a planned storefront in Danvers.

Hyundai is suing in federal court to open a new storefront in Danvers, Massachusetts after a nearby dealership complained that the move violated state regulations.

The automaker originally planned to open McGovern Hyundai in mid-January. McGovern Automotive Group runs multiple outlets in Massachusetts, New York, and New Hampshire, including McGovern Hyundai of Brockton, roughly 50 miles south of Danvers. However, Pride Hyundai, located only seven miles away in Lynn, filed a complaint claiming that the new storefront would break Massachusetts law Chapter 93B, which prevents automakers from opening multiple stores in the same market area without first proving “good cause.” Pride Motor Group runs three dealerships, all located in Lynn.

Pride Hyundai further argued that the new storefront would “effectually erase competition,” further strain new vehicle supply, and “have a significant detrimental effect on the sales and service of existing Hyundai dealerships in the area.” The dealership’s attorney, Scott Carman, also blamed the manufacturer for inventory shortages that he argued have contributed to underwhelming sales numbers. The automaker currently maintains eight stores within proximity to the planned location in Danvers.

In its lawsuit submitted to a federal judge, the automaker noted that its contract with the Lynn dealership did not guarantee exclusive rights to the region and instead allowed for the opening of locations “in or near the primary market area” currently overseen by Pride Hyundai. The car manufacturer also claimed that, without the new storefront, “both HMA [Hyundai Motor America] and the public are harmed” on a daily basis.

Although the automaker maintains the new storefront would “foster brand awareness in a broader market and would be beneficial” to the people of Danvers, Pride Hyundai has already filed a counterclaim alleging the new dealership would cause a 25% decrease in sales and service orders. The lawsuit also alleges that the automaker has contributed to the dealership’s difficulties by failing to appropriately allocate inventory, frustrating “Pride’s ability to meet Hyundai’s own sales expectation numbers.”

Hyundai is seeking a declaratory judgement and an injunction allowing McGovern Hyundai to open as planned. McGovern Automotive Group is not involved in the court battle.

Read More
More from Articles
GM looks beyond EVs with focus on V-8-powered pickups and Patriot missiles

GM looks beyond EVs with new V-8-powered pickups and Patriot missiles

- September 18, 2026
On the Dash: GM Defense delivered Patriot missile parts to Lockheed Martin 22 days after signing its contract. The redesigned 2027 Silverado and Sierra add new 5.7-liter and 6.6-liter V-8...
unifor

Stellantis faces potential strike as Unifor talks remain at impasse

- September 18, 2026
On the Dash: Stellantis faces a new labor deadline as its Canadian contract with Unifor expires Sept. 20. The future of the Brampton plant remains the central issue in negotiations...
Acura pauses MDX Type S production amid emissions uncertainty

Acura pauses MDX Type S production amid emissions uncertainty

- September 18, 2026
On the Dash: Acura pauses the MDX Type S after 2026 with no timeline for its return. The trim is under 10% of MDX sales but delivers outsized margins. Emissions...
Xpeng

Xpeng looks to expand technology partnerships beyond Volkswagen

- September 18, 2026
On the Dash: Xpeng is looking to turn its EV technology into a broader business by licensing systems to other automakers and suppliers. Its Volkswagen partnership shows the potential for...
CBT News
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.