This week a lawsuit brought by Korean carmaker Hyundai against a distributor accusing them of providing diverted or fake components was dismissed by a US court. This case is confusing because of the origins of the brake pads.
The brake pads in question were allegedly made by Hyundai, but were not intended for the US market. These “grey market” brake pads were considered counterfeits by Hyundai because they were being sold in the wrong market.
The judge in the case concluded that Hyundai had not provided enough information to back up its claims against Florida-based Pinnacle Group LLC, a wholesaler which specializes in selling fast moving parts that appear to be OES quality.
I can see Hyundai’s problem because the grey market pads have all the markings of a genuine dealer part but with a low price. But, what is the difference between a Elantra brake pad that is sold in Korea, Europe or South Africa with the one from the US? Shims? Formulation? Corrosion Resistance?
Pinnacle alleges that Hyundai is just trying to run them out of business. Which I can kind of see their point when Pinnacle claims they have been selling to Hyundai dealers in the US. As a technician, I really question the quality of a brake pad that has questions about its origins even if I bought from the dealer. I am sure someone at Hyundai is writing a TSB on the topic that will be out in a few weeks.