Tianjin’s Largest Audi 4S Dealership Closes Amid Bankruptcy Scandal, 1,500 Car Buyers Fight for Rights

Illustration: Chinese-made electric vehicles flooding the European market.(video screenshot)

November 14, 2024 - Following the closure of Beijing’s Xingdebao 5S dealership, which caused a wave of online discussion, Tianjin’s largest Audi 4S dealership, Yonghao Aoda, has also declared bankruptcy. This development has further fueled netizens’ pessimism about China’s economic situation, with some questioning if the economy has reached a critical point. At least 1,500 buyers who purchased vehicles from the dealership are currently seeking justice.

Recently, reports emerged online that Yonghao Aoda, the largest Audi 4S dealership in Tianjin, closed down and its owner filed for bankruptcy.

Videos shared by netizens show the dealership empty of display cars and staff. The showroom appears deserted, with a few people sitting inside, looking helpless.

Customers claim that the dealership has no employees left and all display cars have been removed. To coordinate their efforts, affected customers have formed three group chats, with a total of 1,500 participants, and the number continues to grow.

The grievances include unredeemed maintenance package benefits, unpaid refunds for packages, and deposits made without receiving the purchased vehicles.

One customer stated they paid ¥16,800 for a six-year unlimited maintenance package but had only used it for two years. Another customer reported paying about ¥800,000 for a car but now cannot take delivery of the vehicle.

Additionally, a closure notice bearing the official seal of Yonghao Aoda 4S dealership has been circulating online. The notice states that the dealership's long-term partner bank suddenly withdrew loans, causing a funding chain rupture and severe financial pressure. Consequently, the dealership officially ceased operations on November 12, halting all new car sales and after-sales maintenance services.

On November 13, Viewpoint News reported that the sudden closure of Yonghao Aoda, Tianjin's largest Audi 4S dealership, sparked widespread protests from car owners.

The dealership’s closure notice explains that due to the unexpected loan withdrawal by the partner bank, the company faced a severe financial crisis. It announced the suspension of operations, including new car sales and after-sales services, starting November 12. The notice further stated that the dealership is working on a resolution, with preliminary plans to be communicated to customers by December 12.

Currently, the dealership’s WeChat mini-program is no longer accessible, preventing members from checking their accounts or package details. Yonghao Aoda has yet to provide any updates on how it will handle prepaid maintenance packages and stored balances.

All related social media accounts, including Douyin, have also stopped posting updates. Internal rumors about the dealership’s financial troubles began circulating late last month, indicating that the "collapse" was anticipated internally before it became public knowledge.

Many netizens believe that the root cause of this 4S dealership closure crisis lies in the current downturn of China's economy, which some describe as being on the "brink of collapse."

At the end of October, Beijing Xingdebao Automotive Sales and Service Co., the world's first BMW 5S dealership, posted a notice announcing its closure, becoming the first 5S dealership to shut down. Due to the deteriorating economic environment and intensified financial pressures, BMW terminated its brand authorization on October 20, 2024, leading to a complete halt in new car sales and after-sales services.

Before its closure, Beijing Xingdebao already showed signs of financial strain. Store employees reported not receiving wages for two to three months, and many car owners expressed concerns on social media about difficulties in retrieving their stored balances. Some consumers have begun organizing collective action to defend their rights.

Editor: Li Muen