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Kia Dealers in China Want $365 Million to Offset Losses
More than 100 dealers representing Kia Motors Corp. in China have renewed a threat to suspend sales unless they receive 2.5 billion yuan ($365 million) to compensate for losses caused by excess inventories, Reuters reports.
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More than 100 dealers representing Kia Motors Corp. in China have renewed a threat to suspend sales unless they receive 2.5 billion yuan ($365 million) to compensate for losses caused by excess inventories, Reuters reports.
The payments would amount to 2,000 yuan ($292) per vehicle sold over the past two years.
The group also wants Kia to set monthly dealer-by-dealer inventory quotas that limit future stockpiles to no more than 20% above existing sale rates. The dealers complain that current quotas are driven by the pace of factory production.
Dealers tells Reuters they haven’t received a response from Kia about their demand. Kia and its venture partners, Dongfeng Motor Corp. and Jiangsu Yueda Group Co., haven’t commented about the dispute.