China’s First Auto Group’s Hongqi brand (referred to as “FAW Hongqi”) has recently faced abnormal operations in several “Taiyue series” 4S stores. Multiple car owners in Xi’an, Shaanxi, Zhengzhou, Henan, and Qingdao, Shandong have reported issues such as inability to deliver vehicles after payment, no refund available, and being forced to take out additional loans under the guise of “installment benefits” after full payment for the car, putting them at risk of financial institutions demanding payment and affecting their personal credit information.
Xi’an resident Ms. Yang (pseudonym) recounted her experience of purchasing a Hongqi H5 from the Hongqi Xi’an Taiyue 4S store on August 29, paying over 130,000 RMB for the car, as well as vehicle purchase tax and insurance. According to the agreement, she was supposed to pick up the car on September 15. However, on September 14, the sales staff suddenly informed her that they couldn’t deliver the car on time, without giving a specific reason.
Ms. Yang contacted the 4S store, FAW Hongqi customer service, and local channels such as 12315 and 12345 to address the issue but to no avail.
The explanation she received from the 4S store was that the vehicle certificate and keys were pledged to the bank because the manufacturer did not issue relevant “performance” to the 4S store, which resulted in the store not having the funds to redeem the vehicle certificate.
On September 15, when Ms. Yang went to negotiate with the store, she found that there were eight or nine other car owners facing similar situations. “Most of them had H5s, and some had HS5s and HS3s,” she said.
What worried her even more was that the store almost stopped operating afterward. Ms. Yang mentioned that when she visited again before the Mid-Autumn Festival, the store was almost empty with only a few exhibition cars remaining, and the staff were nowhere to be found.
In the end, Ms. Yang rented a trailer herself to tow away the car she had already paid for. “We’ve already paid for the car, we can’t be left without the car,” she said.
Similar situations were observed at the Hongqi Taiyue 4S store in Zhengzhou. A report indicated that on September 29, several car owners were protesting outside the store, where more than ten exhibition cars were parked inside, but there were no store employees present.
Mr. Chang, another car owner, stated that he paid in full for a Hongqi H5 on September 4 at the store, with the original delivery date set for September 18, then postponed to the 25th, but as of September 29, he had not received the car or a refund for the purchase.
Despite paying in full, the store processed a 50,000 RMB loan for him. Financial institutions have already sent him payment reminders, with the first installment due on October 5. Mr. Chang is concerned that if he can’t make the payment, his personal credit may be affected.
Public information shows that the Taiyue series Hongqi 4S stores involved in Xi’an, Zhengzhou, and Qingdao are all majority-owned (holding 75% to 80%) by Taiyue Xinda (Beijing) Technology Co., Ltd.
According to a report by “Lightning News” on September 27, several Hongqi car owners in Qingdao also faced issues of not being able to receive their cars after making payments. Staff at the implicated 4S stores claimed that some vehicle certificates were still held by banks and had not been redeemed.
FAW Hongqi informed some car owners that the manufacturer had set up a special working group to negotiate with Taiyue Group and a third party bank, but did not promise a specific resolution time. As of now, the CCP regulatory authorities, the implicated dealerships, Taiyue Xinda, and FAW Hongqi have not publicized a comprehensive solution. Car owners in multiple locations are still awaiting results, and the official customer service phone for FAW Hongqi is currently not answering calls.