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BMW’s first 5S store in China shuts amid slump

Beijing Xingdebao Automobile Sales and Service, the first 5S store of the German car maker BMW, has closed its doors permanently due to financial struggles exacerbated by a fierce price war in China’s automotive market. The store, which offered second-hand car sales and financial services in addition to traditional dealer offerings, is no longer selling cars or providing after-sales services, as indicated by a notice posted on its premises. The company is actively seeking capital injections to address its financial crisis, following the termination of its dealer agreement with GA Group due to poor management, which also affected its status as a top BMW dealer. With luxury car sales in China declining by 8.5% in the first nine months of the year, Xingdebao’s closure has left many customers and employees facing losses, including unfulfilled deposits and unpaid wages. A counter has been set up for car owners to register claims for potential future compensation, but many fear they will not recover their financial losses.

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