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File photo/Zhang Jian (NBD)

Apr. 25 (NBD) -- Over 40 dealers from across the country on Tuesday gathered at the booth of Qoros at Auto Shanghai 2019, demanding the carmaker to give back their hard-earned money. 

"Qoros has been in default of the subsidies promised to trade-in customers since October last year, and buyers are really pissed off at us," one dealer cried in an interview with an auto industry-centric WeMedia account. "In addition, some spare parts have been in shortage since December 2018, thus broken vehicles couldn't get timely maintenance." 

"We wouldn't go this far if there is another way out," another dealer said. 

In response, Qoros released a statement Wednesday in which it called the dealers' behavior in Shanghai an irrational way of defending rights. 

The Changshu, Jiangsu-based auto manufacturer argued it has never malevolently been in arrears with payments to cooperative units including dealers, and payments have been and will be made in accordance with terms of agreements.

The company also said the company's management team will work with shareholders - Baoneng, Chery, and Quantum 2007 LLC - to actively deal with outstanding payment.

In fact, the conflict between Qoros and dealership has existed for a long time. 

In December 2018, some dealers jointly wrote a letter to the carmaker complaining about the latter's direct selling behaviors as well as refusal to pay agreed commissions and promotion expenses, because of which they were facing a loss. 

"The company, on the one hand, is painting the grand vision to encourage dealers to increase inventory, but on the other hand, it couldn't deliver new models and pay us marketing fees as promised," one of the dealers said at the auto show. 

In the new announcement, Qoros stated in 2018, China's auto sales recorded the first ever annual negative growth in 28 years, and the hardship continues this year. Under such circumstance, it is normal to see some dealers encounter operational difficulties, but for dealers who share the same vision with Qoros, the carmaker would offer a series of measures to support their development. 

When asked by media about what's the support for dealers, Liu Qiang, vice president of Qoros, said the more cars a dealer sells, the greater support it would get, without giving more details. 

 

Email: lansuying@nbd.com.cn

Editor: Lan Suying