(CBN - Global) April 18 -- Twenty-four car dealerships have joined hands to boycott Changan Ford, a Chinese joint venture of Ford Motor Co., because of high inventories. The dealers have refused to buy any new cars from Changan Ford since April 7.
Ford required them to shell out a lot of money on new cars to boost sales without selling old stock first, shifting large inventories and financial burdens on to the dealers, they said in an open letter. The dealers are confronting serious cash flow problems, and some of them even went into bankruptcy.
Changan Ford produced a total of 254,896 autos in China in the first quarter of this year, up 16.4 percent from a year earlier. Some 251,361 cars were sold, up 14.7 percent.