MenuMENU
SearchSEARCH

Texas Discretionary Allocation Suit Decided

Court rules that Hyundai’s discretionary allocations weren’t unreasonable.

December 16, 2022
Texas Discretionary Allocation Suit Decided

The panel’s unanimous ruling rejects New World’s claims that carmakers must make comparable allocations to competing dealerships in a market.

Credit:

IMAGE: Hyundai

1 min to read


In a case brought by a San Antonio dealership, a Texas appellate court ruled that Hyundai Motor America didn’t unreasonably discriminate in its discretionary vehicle allocations in that market.

Automotive News reported that the court upheld a state motor vehicles department decision siding with Hyundai against New World Car Nissan and New World Car Imports San Antonio, owners of two Hyundai dealerships in San Antonio.

The panel’s unanimous ruling rejects New World’s claims that carmakers must make comparable allocations to competing dealerships in a market.

New World filed its lawsuit in 2013, complaining about discretionary allocations to rival Red McCombs Hyundai, which wasn’t involved in the litigation. The matter moved back and forth between the state DMV and the appellate court with rulings and ruling reversals until the recent appellate decision that the allocations weren’t unreasonable.

READ MORE: Dealer Sues Porsche Over Exclusive Requirement

More Dealer Ops

F&Iby StaffApril 2, 2025

DOWC Powers the Future of F&I for NESNA

Company is providing a fully integrated F&I administration model to Nissan Extended Services North America’s dealer network.

Read More →
IndustryNovember 27, 2024

Six Powerful Questions

Take the time to answer these and lay the groundwork for a successful year-end.

Read More →
Dealer Opsby Hannah MitchellSeptember 19, 2024

Sunny Side Up

Many dealers are going green – both environmentally and cash-wise – by powering their stores with solar-generated electricity.

Read More →
Ad Loading...
IndustryAugust 26, 2024

Is It Time to Rethink Business Development Centers?

Their role at automotive dealerships is essential today to give salespeople time to close deals.

Read More →
Product & Technologyby Hannah MitchellAugust 22, 2024

A Backup Plan

DMS outage revealed a gap that dealers may want to fill.

Read More →
Dealer OpsAugust 20, 2024

Maximizing Revenue Potential

The strategic imperative for auto dealers is to prioritize F&I product sales and wealth-building in challenging times.

Read More →
Ad Loading...
IndustryAugust 7, 2024

How to Optimize Liquidity in a Fluid Environment

It's wise to not take your dealership's banking relationships for granted.

Read More →
IndustryJuly 29, 2024

Unlocking the Keys to Success

Why customer retention matters now more than ever

Read More →
Dealer Opsby StaffJuly 23, 2024

Store Names First Female Dealer Principal

Howard Bentley Buick GMC is now headed by Taylor Bentley Conner.

Read More →
Ad Loading...
IndustryJuly 18, 2024

Masters in Training

Rick McCormick preaches the wisdom of breaking into what he considers the top 3% of F&I managers with a stance of continuous development.

Read More →