Latest News:  


Dealers withdraw from Chery over integration instability


09:29, July 10, 2013

Sinotrust, a leading supplier of marketing and credit solutions in China, recently issued a report on dealer distribution networks, showing that the net withdrawal of Chery's dealers had reached 16 in the first quarter of this year.

Lou Tao, Sino's director of the auto marketing channel consulting department, said that the dealers' withdrawal was a result of Chery's two-year integration efforts and that integration is oftentimes accompanied by instability.

"We suffered losses last year. Seeing no sign of improvement, several shareholders decided to withdraw from the 4S store network. Chery has already ceased using our dealer distribution network. We are now selling cars of different brands," said a former investor of Chery in eastern China.

Sinotrust's report also shows that according to dealer distribution network statistics, the number of Chery's dealers fell to 16 in the first quarter of 2013 compared to the last quarter of 2012, as 27 dealers withdrew from Chery while 11 dealers joined the distribution network.  

Chery's sales have continued to decrease. According to statistics from, an auto industry information website, Chery dropped to fifth place from the top among the list of Chinese brands. May sales for Chery totaled 31,100 units, down 35.1% compared to the same period last year. Between January and May this year, Chery sales came in at 196,000 units, down 13.7%. In 2012, Chery sold 563,300 units, a decrease of 12.4% from 2011.

Lou Tao said dealers may estimate future profits under the uncertainty triggered by integration. If they see slim hope in earning profits, dealers will withdraw from their distribution network and invest in other brands.

One of Chery's top 10 dealers said, "I had been selling Chery cars for years. However, several investors have left recently because you can't find the direction under so many changes. I'm planning to close two direct-sale stores. If Chery's two new products do not work well in the second half of 2013, I will close another agency."

We Recommend:

How did Chinese solar industry go bankrupt?

Born to lead: 2nd gen of Chinese tycoons

Chinese graduates’ unconventional jobs

China's largest railway terminal officially opens

Dazzling gems shine at Beijing jewelry show

Boeing 787 Dreamliner to serve Beijing-Haikou route

New high-speed rail linking Nanjing, Ningbo opens

Jiaxing-Shaoxing Sea Bridge in E China

Chinese investors' happiness and sadness

Email|Print|Comments(Editor:WangXin、Chen Lidan)

Leave your comment0 comments

  1. Name


Selections for you

  1. Chinese, Russian naval forces in drill

  2. "Joint Sea-2013" drill concludes

  3. Muslims buy food to break daytime fast

  4. Working people under the sweltering sun

  5. Lonely summer for migrant kids

  6. Rainstorms flood more than 10,000 cars

  7. Shining WTCC grid girls

  8. Snapshots of Kazan Universiade

  9. China Pan-Asia Stone Expo kicks off

  10. China's 50 best CEOs named

Most Popular


  1. Shortage of teachers hurts kindergartens
  2. Building on past successes
  3. Inflow of 'hot money' tackled, expert says
  4. Caution urged in seeking experts from abroad
  5. China didn't cause German solar firms' bankruptcy
  6. China, U.S. discuss cyber security
  7. Why are we obsessed with selfies?
  8. Israel keen on luring Chinese tourists
  9. 'Bernanke shock' necessary
  10. Safety first for baby formula

What’s happening in China

China's Chongqing issues orange-coded alert of heat

  1. Books on dating become a hit 24 years later
  2. Now a smartphone app for free contraceptives
  3. Gang rape suspect gets new lawyers
  4. Life expectancy for Beijing residents increases
  5. Tourists cool off on beach in Shanghai