Lack of financing puts majority of dealers in red

Many auto dealers in China are suffering from financing problems and some might be in danger of bankruptcy this year, according to a recent survey of dealers across the country.

A majority of dealers were unprofitable in 2008 with about 60 percent in the red, said the survey by Lianxin, an independent research company. It polled 1,252 dealers of 21 domestic and foreign brands.

Wang Kun, an official in charge of the research, said the large-scale losses resulted from a number of factors, such as the global economic slowdown and dealers' weakening financing capability.