Suhui:how to abolish unequal contract terms

The authorized reseller contracts on Automobile Brand Sale concern the benefits of manufacturers, dealers and consumers three sides. However, some unequal terms mainly dominated by the manufacturers have been seriously criticized for them violate the legitimate rights and interests of auto dealers.

The draft of ‘License Agreement on Automobile Brand Sale’ (short for License Agreement) blocked out by SAIC, Commerce Department and CADA was suspended this July due to the strong rejection of automobile manufacturers according to the report of SOHU.

As the contracts of 2010 is about to be signed, whether the fixed unreasonable terms will be terminated and the legitimate rights and interests of auto dealers can be preserved is widely concerned. SOHU has specially interviewed Mr. Su Hui, the former general manager of Beijing Asian Games Village Automobile Exchange Market about this issue.

SOHU: According to your knowledge, how is the amendment of ‘Implementation Measures on Management of Automobile Brand Sale(short for MEASURES)’ going on？

Su: So far as I know, the revised version has already finished, only wait to the approval and distribution of the government. MEASURES will empower more discourse rights on auto dealers.

SOHU: Can the relationship between the manufacturers and dealers be reversed thoroughly after the revision of MEASURES?

Su: A more accurate saying is it will bring out a new look. A fundamental turnaround will be impossible since the authorization structure which is actually the main cause of the disequilibrium between the manufacturers and dealers has already fixed and is unable to change.

SOHU: Is there really lots of unequal terms in these License Agreements?

Su: Yes, it was. And them will also exist in many of this year’s contracts.

SOHU: Can some measures be carried out to solve this problem?

Su: only the promulgation of revised version of MEASURES is expected to abolish the unreasonable terms in the contracts. The amendment of MEASURES is the key to solve the problem.

SOHU: But why the issuance of MEASURES is long delayed?

Su: This is hard to say. In accordance with the Government's request, the revised version should be issued as soon as possible. The Automobile Industry Adjustment and Revitalization Plan has ever demanded to modify the MEASURES. Now several clauses of Automobile Industry Adjustment and Revitalization Plan have already been announced. It is quite beyond understanding why the publication of the revised version of MEASURES is long delayed.

SOHU: The model of License Agreements has been discussed between the manufacturers and dealers but was disapproved by many manufacturers. Can the model be pushed ahead?

Su: So far as I know, the model was modified again after that discussion. Generally speaking, I have confident in the revision of MEASURES and the implement of the contract model.(Translator: Yalong/ Jessie)

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