AutoBeta(AutoBeta.net)09/16 Report--

A few days ago, BMW released with G.A. The termination letter of the group.

It is understood that Germany Automotive Private Co., Ltd. and Beijing Zhongbao Excellence International Trading Co., Ltd. (hereinafter referred to as "G.A." The Group, which owns nine BMW 4S stores, two BMW quick repair stores and one city showroom, signed the BMW Brand Dealer Agreement and other related agreements and supplementary terms with brilliance BMW and BMW (China) Automobile Trading Co., Ltd. (hereinafter collectively referred to as "BMW") on January 1st, 2024, respectively.

BMW said that G.A. Group due to poor management led to broken capital chain, unable to redeem certificates to customers, as well as overdue payments for BMW and its affiliated companies and other reasons, BMW management reviewed, BMW decided to terminate with G.A. The Group's "Dealer Agreement" will come into effect on September 20, 2024 ("termination date").

Meanwhile, G.A. The Group also has five MINI showrooms, which signed the MINI Brand Agency Agreement and the MINI Brand Service Agreement with BMW (China) Automotive Trading Co., Ltd. on January 1, 2023, respectively. Based on the provisions of Section 12.5 (xv) of the MINI Brand Agency Agreement and Section 11.4 of the MIN Brand Service Agreement, all MINI Brand Agency Agreement and MINI Brand Service Agreement will also be terminated on the termination date.

Not long ago, some consumers reported that after the purchase of cars by Xiamen Zhongbao Automobile Co., Ltd., 4S stores failed to deliver vehicles in time, delayed delivery failed to pay for performance, and some vehicle certificates were mortgaged.

It is understood that Xiamen Zhongbao Automobile Co., Ltd. is a subsidiary of Singapore German Automotive Group (referred to as "GA Group"), is the authorized dealer of German BMW Group and brilliance BMW Automobile Co., Ltd., and is also a veteran car dealer in Xiamen area. Its brand influence and market reputation are well received. According to media reports, delivery delays were exposed in Xiamen Zhongbao as early as July, and the situation was also reflected in black cat complaints by users. The problem broke out in September and the contract was eventually terminated by BMW. It is reported that in addition to Xiamen Zhongbao Automobile Co., Ltd., Fuzhou Zhongbao Automobile sales and Service Co., Ltd., and other companies have similar problems, Xiamen Ouli Bank Automobile sales Company, which operates the Porsche brand, also has the problem of delayed delivery of some vehicles. The above-mentioned companies are all dealers of GA Group.

As early as the beginning of this year, there have been frequent thunderstorms, financial crises, shop closures, delisting and other news in large dealer groups, and car dealers as a whole are under tremendous pressure of survival. Recently, many car dealers have encountered operational difficulties. According to the "investigation report on the living conditions of National Automobile Dealers in the first half of 2024" released by the China Automobile Circulation Association, large-scale losses have also become the development status of dealers in the first half of the year. According to the survey of the association, only 35.4% of dealers made a profit in the first half of the year, while the proportion of loss-making dealers reached 50.8%, and the proportion of break-even dealers was 13.8%.

In mid-July, BMW China was the first to withdraw from the price war, and said that "in the second half of the year, BMW will focus on business quality in the Chinese market and support dealers to work steadily." In addition to BMW, Audi and Mercedes-Benz have also withdrawn from the price war one after another. these brands have not only failed to bring good market growth after price cuts, but further aggravated the survival crisis of dealers. According to the data, BMW sold 375900 vehicles in China in the first half of this year, down 4.2 per cent from a year earlier; Mercedes-Benz sold 352600 vehicles, down 6.5 per cent from a year earlier; and Audi sold 320400 vehicles, down 1.9 per cent from a year earlier.

Car dealers collectively fall into a moment of crisis, which is not only the result of the transformation of the automobile industry, but also the inevitable impact caused by the large-scale development of new energy vehicles. Under the influence of the automobile price war, fuel vehicles are facing life and death, and traditional joint venture brands and luxury brands are becoming more and more difficult to sell. In order to seize the market cake, some dealers have to sacrifice profits, price reduction promotion and even "price upside down", but this is undoubtedly drinking poison to quench thirst.

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