Latest news with #carDealers
Daily Mail
16-07-2025
- Automotive
- Daily Mail
Car dealers told to suspend sales of used Citroen cars impacted by urgent 'stop-drive' airbag recall
Car dealers have been told to halt sales of second-hand Citroens awaiting an urgent recall to replace potentially lethal airbags. Last month, the French manufacturer's parent company Stellantis issued a Europe-wide 'stop-drive' order for C3 and DS3 cars produced between 2009 and 2019 until their airbags have been replaced. It came after a French woman in June was killed when the airbag was deployed during a crash and sent metal fragments into her face causing fatal injuries. While tens of thousands of owners in Britain have been forced to park-up their motors on the orders from Stellantis, last week we revealed many of these cars were still being listed for sale across the UK with no mention of the 'stop-drive' notice being in action. As such, buyers could have been driving away in potentially dangerous motors while also invalidating their insurance. It has now emerged that a team of motor trade lawyers has issued a nationwide warning to used car dealers to suspend sales of vehicles in stock - and they could be stuck with these unsellable Citroens for months due to long delays getting them fixed. Car dealers up and down the country have been told by motor trade lawyers to halt sales of second-hand Citroen C3s awaiting an urgent recall to replace their potentially lethal airbags Some 120,000 owners are believed to be impacted by the stop-drive order, which was issued in Britain on 20 June,. Drivers of second-generation Citroen C3 and Mk1 DS3 hot hatches produced between 2009 and 2019 have been sent letters telling them to immediately stop using them over safety concerns for the original Takata airbags installed. Owners have been told to book their vehicles in to be rectified as early as possible and to not drive them in the meantime. However, a study by Which? last week revealed that hundreds of these cars were listed for sale on major used vehicle websites with no information that the manufacturer had issued a stop-drive notice. Owners have been voicing complaints about the long wait times given by Citroen dealers to have their cars fixed, with Stellantis acknowledging that its customer care team and dealers 'have been overwhelmed' by the volume of requests for recall bookings. And these delays are likely to hit dealers even harder, industry insiders have warned. This is because private owners are likely to be prioritised over the motor trade, meaning dealers could be stuck with unsellable Citroen models until 2026. Affected cars being sold at auctions are currently being handed over to buyers with stickers telling trade buyers 'not to drive them'. And following Which?'s investigation last week, Auto Trader now flags adverts on its site if cars have the outstanding recall notice, with around 1,000 of these motors listed on the platform. Lawgistics solicitor Nina Bowkis told trade magazine Car Dealer that the situation has been further complicated by the fact the affected cars will pass an MOT with this safety recall in place. She said: 'Any used car dealer with one of these vehicles to sell would be best advised to wait until the vehicle is fixed or sell it as an unroadworthy vehicle.' Under section 75 of the Road Traffic Act 1988, a motor vehicle is considered unroadworthy if its use on the road would be unlawful due to issues with its construction, equipment, or if it poses a danger of injury to any person, which would include a safety recall notice or stop-drive order. 'This is why we have separate invoices for spares and repairs via which unroadworthy vehicles can be sold to people whom dealers have made fully aware that the vehicle cannot be used on the road if and until it's fixed,' Bowkis added. Selling a car with an outstanding safety recall also a breach of consumer law Any motor dealer selling a car that has an outstanding safety recall is likely in breach of the General Product Safety Regulations 2005 (GPSR). This is based on an interpretation by the DVSA that states that 'a product with an outstanding safety recall should not be passed to a consumer'. It also says that the law does not distinguish between new and used products; so, businesses selling used cars are equally responsible as those who sell new models. But while GPSR likely covers anyone who purchases one of these cars from a dealer, there is no legal protection for those who buy from private sellers. In this instance, the new keeper is solely responsible for checking if an outstanding recall notice is in place for their vehicle – not the vendor. Failing to check if there is an outstanding recall can land new owners in hot water. For instance, if a fault linked to a safety recall causes a crash, the driver's insurance policy could be invalidated. The DVSA also points out that if police find you at the wheel of a car with a major safety recall, you can be 'fined up to £2,500, be banned from driving and get three penalty points for driving a vehicle in a dangerous condition. The Association of British Insurers says: 'You should always let your insurer know if your car has been recalled and follow the guidance that it gives you.' Car buyers who purchase a Citroen C3 with the outstanding airbag recall can be protected by general product safety laws... but those who buy from a private seller don't get that benefit How to find out if your Citroen is affected? Owners can check whether their motor has the outstanding airbag recall notice in place. They can do so by entering the vehicle identification number (VIN) on the recall page of the Citroen UK website. The VIN can be found on the V5 registration document for the car. Owners of Citroens with an outstanding recall alert must register their vehicle for a repair as soon as possible either online or by calling the company's recall helpline on 0800 917 9285, or by phoning Citroen customer care on 0800 093 9393. What is the Takata airbag scandal? The Takata airbag recall is by far the world's biggest vehicle call back of all time, as well as the largest-scale safety recall the automotive sector has ever seen. Potential faults were first raised in 2006, however, the first recall wasn't initiated until 2014. Approximately 100 million cars sold by a variety of brands – including BMW, Honda and Jaguar Land Rover - have been affected globally. Hugo Griffiths, a motoring expert who covered the scandal since it first emerged, told BBC Radio 4's You and Yours show last week: 'So very briefly, how airbags work, is there a metal tube that is filled with explosive, when a collision is detected an electronic signal goes to that explosive which shoots out the end of the metal tube and the gases inflate the airbags. And it works 99.9 per cent of the time perfectly. 'Takata used an explosive called ammonium nitrate. Believe it or not, it is the same stuff Timothy McVeigh used in the Oklahoma City bomb. 'Nobody else had used that before in airbags and it was used in tablet form but if moisture gets in the tablet degrades into powder. 'If that happens, you get an unstable, uncontrolled explosion, and if that happens than rather than shooting out the end of the metal tube and inflating the airbag, the metal tube itself can explode basically sending shrapnel into people's necks, faces or torsos.
Yahoo
01-07-2025
- Automotive
- Yahoo
Car dealers in China's Yangtze delta region warn of 'severe challenges'
BEIJING (Reuters) -Car dealers in one of China's richest regions are appealing to automakers to overhaul sales strategies amid mounting pressure on their cash flow and high inventories in another sign of the growing toll of the price war in the world's largest car market. Four dealer associations based in the Yangtze River Delta encompassing Shanghai city and the provinces of Jiangsu, Zhejiang and Anhui, issued a joint letter on their WeChat accounts on Monday, going public with the pressures they face. Most automakers sell their vehicles in China via dealerships, and the Delta region accounted for 23% of domestic car sales in 2024. "Car dealers in the Yangtze River Delta region face severe challenges such as high inventory, disorderly market competition and increased risk of capital chain rupture," said the letter that was addressed to "all automakers". "Some automakers have forced dealers to sell new cars at prices below cost," they added without naming any firms, saying such a strategy could violate China's competition laws. Dealer associations in the provinces of Henan and Jiangsu issued similar letters last week, while suppliers and dealers have both asked carmakers to pay them more promptly. The complaints indicate that Chinese automakers are continuing a years-long price war despite orders from regulators to stop as the strategy eats into the industry's profitability and financial health. The four dealer associations also said that inventories were above healthy levels. A gradual suspension in car loans in the region since June has compounded the problem leaving consumers who thought they had financing unable to pick up their cars, they added. The dealers made a number of suggestions, including that carmakers should allow them to suggest a reasonable inventory limit and adjust sales targets to better recognise the capacity of the regional market. China's legislature passed amendments to the anti-unfair competition law last week. The revised law strengthens rules against forced below-cost pricing and will come into effect in October. Sign in to access your portfolio
Reuters
01-07-2025
- Automotive
- Reuters
Car dealers in China's Yangtze delta region warn of 'severe challenges'
BEIJING, July 1 (Reuters) - Car dealers in one of China's richest regions are appealing to automakers to overhaul sales strategies amid mounting pressure on their cash flow and high inventories in another sign of the growing toll of the price war in the world's largest car market. Four dealer associations based in the Yangtze River Delta encompassing Shanghai city and the provinces of Jiangsu, Zhejiang and Anhui, issued a joint letter on their WeChat accounts on Monday, going public with the pressures they face. Most automakers sell their vehicles in China via dealerships, and the Delta region accounted for 23% of domestic car sales in 2024. "Car dealers in the Yangtze River Delta region face severe challenges such as high inventory, disorderly market competition and increased risk of capital chain rupture," said the letter that was addressed to "all automakers". "Some automakers have forced dealers to sell new cars at prices below cost," they added without naming any firms, saying such a strategy could violate China's competition laws. Dealer associations in the provinces of Henan and Jiangsu issued similar letters last week, while suppliers and dealers have both asked carmakers to pay them more promptly. The complaints indicate that Chinese automakers are continuing a years-long price war despite orders from regulators to stop as the strategy eats into the industry's profitability and financial health. The four dealer associations also said that inventories were above healthy levels. A gradual suspension in car loans in the region since June has compounded the problem leaving consumers who thought they had financing unable to pick up their cars, they added. The dealers made a number of suggestions, including that carmakers should allow them to suggest a reasonable inventory limit and adjust sales targets to better recognise the capacity of the regional market. China's legislature passed amendments to the anti-unfair competition law last week. The revised law strengthens rules against forced below-cost pricing and will come into effect in October.
Reuters
18-06-2025
- Automotive
- Reuters
Some Chinese banks vow to rein in commissions given to car dealers for auto loans
BEIJING, June 18 (Reuters) - Banks in China's Henan province said on Tuesday they will stop giving car dealers high commissions for auto loans taken out by buyers - a move that comes amid increased regulatory scrutiny of the sector. Chinese authorities have been keen to curb a deepening price war in the car industry and what they see as excessive competition among automakers. According to industry sources, some Chinese banks offer car dealers high commissions to lure borrowers and the dealers then use that money to provide discounts to car buyers, stimulating sales. The sources were not authorised to speak to media and declined to be identified. China Everbright Bank's ( opens new tab Zhengzhou branch, Henan Rural Commercial Bank and Bank of Communications' ( opens new tab Henan branch also said in statements that they will prevent car dealers from making it compulsory for customers to take out a car loan. The practice increases borrowing costs for consumers and ultimately harms the interests of both consumers and financial institutions, the lenders said. The banks added that interest rates on car loans should be no more than 6%. Until recently, the price war that began in early 2023 had shown little sign of abating, and tensions have been running high with some auto executives questioning the health of the sector. China's industry ministry summoned automakers to a meeting this month where they were told rein in the price war and excessive practices that have hurt the industry's supply chain. Since then, automakers have pledged to make payments to suppliers in 60 days, responding to an outcry from steelmakers over long payment times. Chinese auto dealers have also complained, calling on automakers to stop offloading too many cars on dealerships, saying the intense price war was damaging their cash flow, driving down their profitability and forcing some to shut.
South China Morning Post
27-05-2025
- Automotive
- South China Morning Post
Beijing asks carmakers, trading platforms to clean up used-vehicle market amid price war
Beijing has stepped in to monitor the trading of used cars as mainland China's automotive sector , saddled with overcapacity, is under pressure to improve profitability amid an escalating price war. On Tuesday afternoon, the Ministry of Commerce gathered industry groups, major carmakers and trading platforms for second-hand cars to discuss issues surrounding the sale of 'used vehicles with zero mileage', according to Reuters. The ministry was seeking to stabilise car prices in the world's largest automotive and electric vehicle (EV) market, according to two car dealers, where vicious competition has ensnared around 100 manufacturers. The ministry did not respond to a request for comment on Tuesday. Typically, cars that have never been driven are bought by second-hand dealers from manufacturers at very low prices before they are sold to consumers as pre-owned vehicles. 'To summarise, carmakers sell [practically] new cars through dealers of used vehicles at much lower prices,' said Tian Maowei, a sales manager at Yiyou Auto Service in Shanghai. 'The sales [model] helps individual companies reduce their inventory, but it does no good to the market [when] lower car prices have made it difficult for most carmakers to break even.' According to dealers, the second-hand cars that have never been driven are offered at prices more than 30 per cent lower than vehicles that are sold as new. It is not clear if the Ministry of Commerce would continue to allow carmakers and dealers to use the second-hand sales model in question. The dealers said the sales model might not be defined by the ministry as bending the law.
