After the shocking scandal of the closure of the largest Audi 4S dealership, “Yonghao Auta,” in Tianjin made headlines, more alarming news followed suit – two Buick 4S dealerships in Tianjin are also in trouble.
In recent days, the largest Audi 4S dealership in Tianjin, “Yonghao Auta,” collapsed, leaving many car owners in panic. Currently, at least 1,500 people who purchased cars from the dealership are seeking justice.
According to a report by “Car Connect China,” a certified creator in the automotive field, some Buick owners revealed that upon seeing the news of Yonghao’s closure, they discovered that two Buick 4S dealerships had also shut down.
These two Buick 4S dealerships are located in Xinqing Zhongbei Town in Tianjin – “Xinmao Tian” Buick 4S dealership and “Konggang Huiyi” Buick 4S dealership.
Car owners who purchased vehicles with the “Dual Guarantee” product from Xinmao Tian and Konggang Huiyi Buick dealerships are now facing the possibility of warranty and maintenance issues.
The price of these “Dual Guarantee” products ranges from 5,888 to 8,888 yuan (RMB), depending on the car model, and includes 18 services over six years.
Owners were attracted to these products because they could typically spend only three to four hundred yuan on each service after purchasing them. However, to their surprise, before utilizing all the services, the 4S dealerships closed down.
According to owners’ leaks, only at Tianjin Konggang Huiyi Buick 4S dealership, there are already over a thousand affected owners who cannot redeem the benefits of the Dual Guarantee.
Local lifestyle service platform in Tianjin, “Tianjin Zuz,” certified as a quality content creator by NetEase, also reported the above news.
The report mentioned that many owners have started contacting Buick’s official 400 hotline for assistance.
As the situation escalates, Buick brand officials have responded.
Some owners stated that Buick headquarters has contacted them, mentioning that Buick is coordinating the matter, but due to the large scale, it will take time. A preliminary decision is expected to be made by the end of December to address the issue. In the meantime, those in urgent need of maintenance can opt to pay at other Buick 4S dealerships.
The key point of the issue lies in the fact that the 4S dealerships that collected money have shut down. From the leaks provided by owners, some had only used the warranty service once before the dealerships vanished. If these affected owners are neglected, it could lead to a “broken windows” effect, greatly diminishing owners’ enthusiasm and support for the brand.
Furthermore, amid the growing popularity of new energy vehicles in today’s market, any negative service-related incidents could potentially impact potential buyers’ purchasing decisions.
Moreover, the major shareholder of the Buick 4S dealerships, Guanghui Auto, has been delisted from A-shares.
Guanghui Auto’s stock prices were below 1 yuan for 20 consecutive trading days from June 20, 2024, to July 17, 2024. According to relevant regulations of the Shanghai Stock Exchange, the company’s stocks and convertible corporate bonds triggered the conditions for delisting.
Guanghui Auto stated that on August 21, 2024, they received a decision on self-regulation supervision from the Shanghai Stock Exchange, leading to the delisting of their stocks and convertible corporate bonds.
The Buick 4S dealership closures in Tianjin this time have affected a larger number of people, and each owner’s situation is different.
The report mentioned that the last hope for owners may be to sue the 4S dealerships to recover some losses. However, this hope seems bleak, as when a 4S dealership suddenly goes under, it often means chaos and debts internally.
Regarding the recent frequent reports of 4S dealerships of traditional brands collapsing, industry insiders point out that initially, the operation model of 4S dealerships involves purchasing cars with bank loans, pledging the vehicle qualification certificate to the bank upon arrival, and later reimbursing the money by selling cars to recover funds and redeeming the certificate from the bank, completing the entire transaction chain. However, due to intense price competition, some 4S dealerships have to keep bringing in new cars to maintain the brand authorization. Simultaneously, to quickly circulate funds, they are compelled to engage in price wars, leading to losses in selling cars, resulting in diminishing available funds, rendering the stores unable to operate normally.