GAC FCA may Face Punitive Measures, If Fail to Improve Relations with Dealers

Natasha Li From Gasgoo.com

Gasgoo.com (Shanghai Jan 26th)– China Auto Dealers Chamber of Commerce revealed yesterday that they don’t exclude the possibility to take actions upon GAC FCA, including reporting to related authorities and filling lawsuits, in a bid to press this carmaker to improve the dealers’ operating conditions.

According to a survey conducted by the Chamber of Commerce last year, dealers of FCA’s have been long challenged with difficulties in operations and were least satisfied with the carmaker. To this end, the Chamber has already sent a letter to GAC FCA to urge them come up with an improvement plan on September 25th, 2015.

The Chamber said in the letter that dealers were losing huge money because many models of GAC FCA’s purchasing prices were actually higher than dealer’s selling price. Meanwhile, GAC FCA also pressed the dealers with unreasonable sales assignments, limited the dealer’s purchase items, forced dealers to purchase dead stocks along with other models, set up or cancelled dealership at will and associated subsidies with kickbacks.

The Chamber requested GAC FCA to improve the dealers’ operating conditionsamicably, but they will not exclude the possibilities of further actions, including reporting to related authorities and filling lawsuits.

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