Summary of Key Issues
Recently, several Zhiji Automobile dealerships across different regions (Kunming, Zhuhai, Shanghai) have suddenly faced significant problems: car owners who made payments cannot pick up their vehicles or receive the promised refunds, while employees have been unpaid for months. Although the company has pledged to protect the rights of car owners, progress has been slow due to the large amount of money involved, legal procedures, and the need for coordination with multiple parties. This crisis stems from Zhiji's shift from a direct-sales model to a dealership-based model, which has exposed common challenges faced by dealers in the industry, such as high inventory levels, inverted pricing structures, and difficulties in capital turnover.
1. Car Owners: Money Paid, but No Vehicles; Refunds Gone, and No Official Contact
Many car owners have encountered the situation where the dealerships close down after they make payments. For example, Mr. Fang from Kunming paid a full amount of 192,700 yuan for a Zhiji L6 in June, with a promised refund of 35,000 yuan. However, by July, the dealership had closed down, and he neither received his vehicle nor his money back. There are over 280 car owners in the support group, with dozens of them having paid in full but still unable to get their vehicles.
The company has sent out messages stating that it will cover the cost of redeeming the vehicle certificates and protecting the rights of the owners, but the car owners are very anxious. Mr. Fang from Kunming has been waiting for over a week without any official contact, and when he contacted customer service, he was only told to be patient. Car owners in Zhuhai also received similar messages, but there has been no follow-up action. The situation in Shanghai is even worse; the person in charge of the dealership disappeared with the money, leaving both the company and the dealer blaming each other, and car owners are now waiting for the police investigation results.
2. Employees: Unpaid Wages for Three Months—Who Will Help?
Not only car owners but also employees are facing difficulties. In Kunming, 60 employees have not received their wages for three months. The owner claims there is no money available to pay them, while the company says they need to wait for the court's decision. The employees are frustrated, noting that while car owners receive support messages from the company, they do not.
These employees signed contracts with the dealerships and do not have a direct employment relationship with Zhiji, making it even harder for them to seek compensation. They are left with no clear solution and can only wait for the legal process to unfold.
3. Why Is the Company’s Support So Slow?
Here are three main reasons why the company's support efforts are progressing slowly:
- Large Amounts of Money Involved and Complex Situations: There are many car owners involved, each with different payment methods, amounts, and refund promises, requiring individual verification rather than a one-size-fits-all approach.
- Legal Issues: The dealerships may be suspected of misappropriating funds or engaging in fraud, and the cases have been handed over to the police and courts, so the company must wait for the investigation results.
- Need to Coordinate with Multiple Parties: The company needs to negotiate with banks and financial institutions to redeem the vehicle certificates and communicate with regulatory authorities to ensure that the process is legal and avoids new disputes.
In simple terms, this issue has many interconnected components, and while it cannot be rushed, car owners and employees cannot afford to wait any longer.
4. The Collapse Is Not an Accident: The “Sweet Trap” of the Dealer Model
Zhiji initially operated on a direct-sales model, but it later switched to a dealership-based approach, which increased sales (40,100 vehicles were delivered from January to June this year, a 58% increase year-over-year). However, this change has also exposed underlying problems:
- Poor Industry Conditions: China’s automobile dealer inventory warning index reached 57.2% in June (a level indicating significant pressure), with dealers generally experiencing losses on sales (prices are lower than purchase costs), excess inventory, and difficulty in selling vehicles, leading to poor capital turnover.
- Interconnected Risks among Dealers: The failing dealers in Kunming and Zhuhai are related; the owner of the Kunming dealership, Mr. Zhou Nan, was once a shareholder of the Zhuhai dealership and withdrew as a shareholder only in April this year. It is possible that their financial situations were linked, leading to the collapse of both.
5. Tips for Avoiding Problems When Buying a Car
How can ordinary people avoid similar issues when buying a car?
- Pay Through Official Channels: Try to make payments through the brand’s app or official accounts to reduce the risk of transferring money directly to dealerships.
- Verify Dealer Qualifications: Check the background of the dealership and avoid those with multiple related companies or poor reputations.
- Keep Evidence: Keep all contracts, payment records, and sales promises for future reference in case of issues.
- Be wary of Urgent Sales Promotions**: If sellers claim there are only a few units left or discounts are about to end, verify the information before making a purchase.
In Conclusion
Zhiji’s sales growth is certainly good news, but we cannot ignore the plight of its dealers. After all, dealers play a crucial role in connecting the brand with customers. If the dealer network collapses, it undermines customer trust and ultimately harms the brand’s reputation. It is hoped that the company will resolve these issues quickly to prevent car owners and employees from waiting any longer for their rights to be protected.