Last week, CDG News covered operational tactics for Hyundai dealers who felt frustrated navigating what they described as tough incentive policies and costly image requirements.
Some dealers who shared experiences with us felt uncomfortable speaking on the record. Others we spoke with shared how they’re finding success with the brand.
Hyundai Motor America, meanwhile, told us that they consistently check in with the dealer body.
“...We are actively listening to dealer feedback through regular engagement, including direct outreach and ongoing discussions with our Dealer Council,” the company wrote in part via email. “Our current [Performance Engagement Program (PEP)] and incentive structures are performing well overall, and we continue to review them in collaboration with dealers to ensure they remain effective and responsive as conditions evolve.”
Why this matters: Following CDG's May 24 report on Hyundai dealer frustrations, an anonymous source identifying as a multi-store Hyundai general manager sent CDG News a detailed account of four issues they said are affecting dealers in their region.
The source provided documents they said were distributed by Hyundai to support the claims.
The documents, which CDG reviewed, pertain to Hyundai's Performance Engagement Program, the volume-based incentive that pays dealers a per-vehicle bonus for hitting monthly sales targets.
Hyundai unveiled what the source described as PEP 3.0 in January 2026.
What the documents show: Lower payouts.
According to the January document reviewed by CDG, the restructured PEP reduced per-vehicle bonuses at the 100% attainment threshold from $800 to $600, and dropped the 110% tier from $1,000 to $800.
Hyundai, per the document, framed the new structure as more balanced and attainable.
The January version also weighted prior-year sales at 50% and the prior two months at 50% when setting dealer targets.
What the documents show: The formula seemingly changed.
A second document, dated May 1 and also reviewed by CDG, shows a different weighting.
Under the May version, the prior two months now carry 75% of the weight in setting targets, up from 50%.
The prior year component dropped from 50% to 25%.
The May version also added a new cap: the prior-year share component is limited to 110% of prior-year objectives.
The concern: Dealers coming off strong sales months then (allegedly) see targets rise immediately, making sustained attainment harder over time, while payouts per vehicle decline.
Beyond that, the source alleged Hyundai made this change without notifying dealers.
CDG was not able to independently confirm whether dealers received formal notification of the formula shift.
OUTSMART THE CAR MARKET IN 5 MINUTES A WEEK
Get insights trusted by 55,000+ car dealers. Free, fast, and built for automotive leaders.
A separate claim: Ioniq 5 inventory is being withheld in the western region.
The source alleged that beginning in mid-March, large volumes of Ioniq 5 inventory in the western region were moved to "TBD" status at port and stopped flowing to dealers.
They said sources close to the matter, over multiple conversations, indicated the inventory was being withheld because the company had exhausted its first-quarter rebate budget.
Dealers were not notified of the hold, according to the source, and were still being evaluated against their elevated PEP targets during the period.
For now: CDG reached out to Hyundai Motor America with specific questions about the inventory hold. The company had not responded as of publication.
CDG News will update this report if Hyundai responds. Dealers with additional information about PEP 3.0 or regional inventory allocation can reach the CDG newsroom directly.
A quick word from our partner
Not all franchises are created equal, and in Q1 2026, the gap widened.
The team at Haig Partners brings deep auto retail experience, a track record of record-breaking prices across six brands, and one focus:
Maximizing the value of your life's work.
The Q1 2026 Haig Report® delivers exclusive insights into dealership values, blue sky multiples, and franchise performance to guide smarter decisions.
