Gasgoo.com (Shanghai January 13) - The China Automobile Dealers Association has been working hard to represent the interests of Chinese dealerships. Earlier, the CADA assisted dealerships to send a report to the Ministry of Industry and Information Technology and Ministry of Commerce on the state of dealership inventories and deficits.
In the past, CADA has assisted BMW and FAW-Toyota dealerships to apply for compensation of 5.1 billion RMB ($832.04m) and 2.2 billion RMB ($358.92m), respectively. These motions have become even more numerous this year as many dealerships saw their sales fall dramatically over the past few months.
CADA Deputy Secretary General Song Taocheng explained that their organization is helping dealerships from nearly 20 different manufacturers on a daily basis. To date, CADA has helped dealerships retrieve compensation of several billions of RMB. Mr. Song emphasizes that such work is only one of the organization’s many tasks, and that the reason that recently such cases have come into the media spotlight has mainly to do with deteriorating relationships between manufacturers and their dealerships.
CADA Secretary General Shen Jinjun further goes into detail about the difficulties dealerships face: “In the current model where manufacturers control supply and demand, manufacturers themselves manage to reap large profits, while dealerships suffer severe deficits. This is not a proper business model, as the two should be working together.”
