Daimler suspends Mercedes franchise in China after customer complaint goes viral

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Daimler suspends Mercedes franchise in China after customer complaint goes viral
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Germany's Daimler has suspended a local sales franchise for its Mercedes-Be...

FILE PHOTO: A Mercedes Benz logo is pictured at a Mercedes Benz branch in Stuttgart, Germany, April 15, 2019. REUTERS/Ralph Orlowski/File Photo

Daimler said in a statement on Tuesday that the dealership in Xi’an city in the northwestern province of Shaanxi had reached an agreement with the customer and was investigating its customer service and business operations, and had suspended the franchise in the meantime. In the video, the customer complained that a car she had recently bought was leaking oil and that she was subsequently treated poorly by the dealer, highlighting poor consumer rights in the world’s second largest economy.

China’s banking and insurance regulator has asked Mercedes-Benz’s car finance unit to investigate its dealership arrangements, state media said on Tuesday.

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