Gasgoo.com (Shanghai August 2) - As pressure on cutting down manufacturer inventories continues to mount, reports of more and more dealers facing financial ruin continue to grow. Yan Jinghui, vice president of beiyacheshi.com, rebuffed the claims in an interview with the Beijing Youth Daily yesterday. According to Mr. Yan, although inventory stock has grown all around the board, it is within acceptable limits. "[We] have not yet reached a critical stage yet," he commented.
Mr. Yan's comments come as reports that nearly one-third of all domestic dealers are facing economic losses circulate. Dealerships in Beijing have been especially worried, with policies restricting vehicle purchases further decreasing sales. In order to help relieve the pressure on inventories, dealers all across the country have been offering promotional events since last month, with those specializing in Japanese cars especially pushing sales.
According to beiyacheshi.com statistics, 80 percent of import dealers saw profits or broke even in the first half of this year, while 30 percent of domestic dealers suffered losses.
