Mercedes-Benz Admits It Cannot Limit Greedy Dealers in China
Xu Wei
/SOURCE : yicai
Mercedes-Benz Admits It Cannot Limit Greedy Dealers in China

(Yicai Global) April 25 -- Mercedes-Benz has lifted its hand up, citing a lack of legal rights, amid its recent financing dispute that involves dealers and car buyers in China. 

"Dealers are independent legal entities," state-backed The Paper reported today, citing Mercedes-Benz Financial Services' customer service. "We have no rights to restrict them."

The car company has entered the centre of attention in the Chinese car news after the firm's dealers have been reported to collect unauthorized service fees. The storm started from one viral video of a woman whose car seller, run by Xi'an Lizhixing Automobile Service, persuaded her to take a loan to pay for the purchase, without justifying the CNY15,000 (USD2,237) service fee. 

"Mercedes-Benz Financial Services charges no such financial service fee for its dealers or customers," the staff member of the Stuttgart-headquartered firm added. Mercedes-Benz has repeatedly required its dealers to comply with the law and guarantee customer rights.

Not all are that worried about the public reaction, as Hunan Zunfu Automobile Sales and Service, a Mercedes-Benz dealer in central China, has ignored the shock waves stemming from Xi'an and doubled its service fee to 6 percent. 

China Banking and Insurance Regulatory Commission has asked relevant bureaus to investigate Chinese Mercedes-Benz dealers.

Editor: Emmi Laine

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Keywords: Mercedes-Benz