(Yicai) Nov. 15 -- Audi's largest dealership in Tianjin, a major city near Beijing, has ceased operations, involving over CNY100 million (USD13.8 million) in disputed funds, underscoring the challenges faced by traditional dealerships amid the shift to electric vehicles.

Tianjin Yonghao Audi closed its doors on Nov. 12 after a long-term banking partner suddenly withdrew funding, causing a cash flow crisis, Jiemian News reported yesterday. The 4S dealership, which sells new cars of the German marque and provides after-sales services, is seeking a resolution and plans to report back by Dec. 12.

As of Nov. 13, the showroom was empty, with no vehicles on display. More than 1,000 customers, whose claims now total over CNY100 million, are seeking compensation, with the figures continuing to rise. Local police have launched an investigation and are advising customers to preserve relevant evidence.

An employee revealed that staff members have not received salaries since August, accumulating three months of wage arrears.

Established in 2009 with a total investment of CNY175 million, the dealership boasted an 18,000-square-meter facility, including a 3,000-square-meter showroom, making it Tianjin's largest Audi dealership.

The dealership's majority shareholder, Tianjin Yonghao Group, also operates Hongqi and Dongfeng Honda dealerships, according to public data. The group's Hongqi outlet posted an identical closure notice the same day, while its Dongfeng Honda dealership's sales hotline remains unanswered.

Traditional auto dealerships are facing increasing challenges amid the rise of EVs. In late October, BMW's first global 5S store, Beijing Xingdebao Automobile Sales and Service, also announced its closure. Opened in 2015, the store previously offered both new and second-hand cars, as well as financial services.

Editor: Emmi Laine