Gersche Automobile News Reuters reported that as Hyundai turned its main sales model, Xinshengda, into China, but did not introduce other models in the future, which resulted in serious losses for imported car dealers, Hyundai China dealers demanded that the automobile company pay 800 million to 900 million yuan (120 million to 135 million dollars) for withdrawal from the Internet. .
Wang Rongzhen, a modern Chinese dealer, told Reuters on July 20 that Hyundai has withdrawn its product line-up to Chinese import dealers, offering only one model, Feith, for sale, while Jens and Sunda need to accept reservations.
Hyundai said that import dealers could apply to become dealers of Beijing Hyundai's models, but Wang Rongzhen pointed out that no import dealers had successfully transformed.
In an interview, Wang Rongzhen said, "Dealers want to sell cars. If manufacturers don't provide models, we can't sell them any more and can only withdraw from the Internet." Hyundai Motor has nearly 40 imported dealers in China, of which 30 dealers demand compensation from the network.
According to the joint letter issued by modern Chinese dealers, Hyundai has transferred the 80% of its import sales of the new Shengda model to Beijing Hyundai, but no other major models have been introduced in the follow-up, which has resulted in serious losses for dealers. In addition, since 2014, Hyundai China has persuaded Chinese dealers to withdraw from the network nearly 50%. Since 2016, it no longer receives orders, or fails to provide vehicles that meet China's Five Emission Standards, resulting in no cars to sell. Therefore, imported Hyundai China dealers require the automobile company to make compensation for withdrawal from the network.
In the face of similar situations, dealers from other auto companies are also seeking to share losses. At the beginning of 2015, BMW Group agreed to compensate dealers with a shortage of funds for $820 million.
