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"xiamen zhongbao, longyan zhongbao and fuzhou zhongbao have all closed their stores." a staff member of xiamen xinda tongbao automobile sales and service co., ltd. (hereinafter referred to as "xiamen xinda") told times finance.

recently, a user revealed that he had ordered a bmw brand car from xiamen zhongbao automobile co., ltd. (hereinafter referred to as "xiamen zhongbao"), but the store has been delaying delivery, presumably due to a broken capital chain.

△photo source: times finance

xiamen zhongbao mainly deals in bmw and bmw's mini brand cars, and has stores in xiamen and surrounding areas such as fuzhou, quanzhou, longyan, etc.

times finance called two xiamen zhongbao stores, but no one answered the phone. another bmw and mini dealer in xiamen, xiamen xinda, told times finance that because the dealership authorization was officially cancelled by bmw, xiamen zhongbao and many stores of its group have been closed.

subsequently, times finance confirmed the above information with bmw, and the relevant person in charge of bmw responded that "we are actively communicating with relevant parties to ensure that customer interests are not harmed."

involving 17 stores, the old partner’s authorization was revoked?

xiamen zhongbao was established in 1998 and is a long-established bmw dealer in fujian.

since july this year, there have been reports that xiamen zhongbao was facing a capital chain crisis due to poor management, which resulted in the inability to deliver the vehicle certificates pledged at the bank to customers.

in september, xiamen zhongbao added a new equity freeze information and a case filing information. on september 4, the qingdao intermediate people's court of shandong province froze 4.68 million yuan of xiamen zhongbao's funds; on september 10, the fuzhou cangshan branch of the bank of china co., ltd. sued xiamen zhongbao in the fuzhou cangshan district people's court due to a "financial loan contract dispute."

along with xiamen zhongbao, fuzhou zhongbao automobile sales and service co., ltd. and beijing zhongbao excellence international trade co., ltd. were also sued in court. the former is a wholly-owned subsidiary of xiamen zhongbao, and the latter is the parent company of xiamen zhongbao.

△image source: internet

due to the broken capital chain and customer complaints, there are reports that bmw will stop authorizing xiamen zhongbao and related companies. a document circulated online shows that bmw will stop authorizing beijing zhongbao excellence international trading co., ltd. (and its parent company) on september 20, including the latter's 9 bmw 4s stores, 2 bmw quick repair stores and 1 city showroom.

at the same time, bmw will also cancel the authorization of 5 related mini stores on september 20. overall, bmw may cancel the dealership authorization of a total of 17 stores (including showrooms) this time.

bmw confirmed the authenticity of the contents of the above-mentioned online document to times finance, but said that the final negotiation results have not yet been determined.

the latest news shows that the sales of mini in xiamen has been taken over by another local dealer, xiamen xinda, which is currently the only mini dealer in xiamen. in addition, the sales of bmw will also be taken over by other local dealers in the future.

withdraw from price war and sales decline

xiamen zhongbao's current situation is just a microcosm of the competition in the auto market. in the fierce market environment, luxury brands are also hard to stay out of it.

earlier in may, porsche's car prices plunged due to a sharp drop in sales and poor sales of pure electric models. in order to complete its sales task, porsche china chose to hold back inventory, causing dealers to threaten to stop purchasing cars and demand that porsche replace senior executives and increase subsidies. as a result, the conflict between the two sides was completely intensified.

while some bmw dealers are facing similar challenges, bmw's performance in the chinese market is also similar.

in the first half of this year, the terminal prices of many bmw models in china dropped significantly compared with the suggested prices, and the prices of electric models such as bmw i3 and ix3 were even discounted by more than 100,000 yuan. however, this not only failed to boost sales, but also increased the operating pressure on dealers.

in the first half of this year, bmw's sales in china were 376,000 vehicles, a year-on-year decrease of 4.2%.

in order to reduce dealer pressure and maintain the price system, bmw took the lead in withdrawing some preferential policies and quitting the "price war" in early july this year. subsequently, the discount range of many bmw models was tightened, and the terminal price rebounded by 30,000-50,000 yuan. subsequently, many joint venture brands followed suit.

it is still unknown whether the "price maintenance and volume reduction" of bmw and other brands can improve their profitability. however, in terms of market sales, bmw's sales in china have continued to decline since july, from 55,631 in june to 34,875 in august, with a cumulative decline of 37.3% in two months (data source: autohome).

even if they gave up sales, they could not keep their dealers. bmw was once again caught in a dilemma.