Luxury Brand 4S Store After-Sales Manager “Blocks Door,” Making It Harder for Resigned Technicians to Start Their Own Shops?

The latest survey data from the China Automobile Dealers Association shows that the proportion of dealers nationwide experiencing losses in the first half of the year has risen to 52.6%, those breaking even account for 17.5%, and the proportion of profitable dealers is only 29.9%.

In the gross profit composition of dealers, the contribution of new cars, after-sales service, and financial insurance to gross profit are -22.3%, 63.8%, and 36.2% respectively. Undoubtedly, after-sales service is the "lifeline" for the vast majority of dealers.

Against this backdrop, the competition between 4S shops and auto repair shops has shifted from covert to overt, with frequent conflicts arising.

Recently, a Mercedes-Benz specialized repair shop in Suzhou was blocked by the after-sales manager of a 4S shop. The owner uploaded videos and photos of the scene to social media, sparking a debate between 4S shop personnel and independent after-sales practitioners.

Some top comments believe that the specialty repair shop’s signage is “borderline” and may be making use of 4S shop customer information, which could constitute an infringement in its business operations. Some industry insiders have also shared their experiences, saying they have been investigated by relevant authorities over customer data. Those whose illegal promotional activities are deemed serious could even face imprisonment.

However, the shop owner himself responded that he had already left the 4S dealership as early as 2022, and there has been no clear connection during this period. The claim of infringement is unfounded. On one hand, he is an authorized partner of Mercedes-Benz’s “Shipei” program; on the other hand, the customer groups are not the same. The so-called “blocking the entrance” incident is completely absurd.

Recently, a Lexus 4S dealership in Yinchuan issued a notice reminding car owners to "beware" of former technicians who have left to open their own repair shops and attract customers. Many industry professionals believe that, under operating pressures, more 4S dealerships will "target" departing technicians in the future, leading to a worsening business environment for specialty repair shops.

01. When a departing technician opens a new shop, is "being too close" the biggest taboo?

The Mercedes-Benz repair shop involved in the incident displayed a sign reading "*Xinghang Mercedes-Benz Service Center," which led many 4S dealership personnel to suspect it of "riding on the coattails" of "Lixinghang." Furthermore, the shop owner was previously an employee of the 4S dealership involved in the incident, so the suspicion of "poaching customers" is quite understandable.

Some insiders at 4S dealerships bluntly state that specialized repair shops should “keep a low profile.” Legal departments of traditional luxury brands are usually rather tolerant, but that is by no means a reason for independent aftermarket service centers to use their trademarks at will. Especially as OEMs explore officially authorizing independent repair shops, brand logos and labels such as “after-sales service center” are likely to become flashpoints for disputes.

Regarding customer information, although it is difficult to define clearly, it is generally accepted in the industry that this serves as the "first pot of gold" for departing technicians who open their own shops locally. Some personnel from 4S dealerships suspect that these specialized repair shops send out overly explicit mass messages, which are then forwarded to the 4S dealership by loyal customers. This has led to accusations of unfair competition from the 4S dealership, resulting in situations where after-sales managers block the entrance to the shop.

The AC car contacted the shop owner, who stated that the door-blocking incident was dropped after the police were called, but the reason was not as bystanders had speculated.

On one hand, since there is a suspicion of "infringement," why haven't there been any complaints in the more than two years since the shop opened? On the other hand, I have been resigned for nearly three years, and the clients I serve are Mercedes-Benz owners with vehicles out of warranty, which do not overlap with the customer base of 4S dealerships.

According to Article 59 of the Trademark Law and related judicial interpretations, the use of another party's trademark in the automobile repair industry must meet three core requirements: first, necessity, meaning that the trademark must be used because it is impossible to accurately describe the service object without it; second, reasonable limitation, meaning the trademark must not be prominently displayed; third, no likelihood of confusion, meaning additional explanations must be provided to eliminate any misunderstanding of association.

The skepticism towards the Mercedes-Benz specialized repair shop centers on two points: First, the shop does not prominently use the "Mercedes-Benz" trademark on its signage or promotional materials, and it has authorization from the official Mercedes-Benz "SPEED" platform, which falls under the category of "indicative fair use." Second, the repair shop does not falsely advertise a partnership with Mercedes-Benz, and the materials displayed in the shop are all based on the authorization agreement, with no direct evidence of "exaggerated promotion."

The store owner stated that the dispute did not affect normal operations, so not many details were disclosed. However, AC Auto noticed that the trigger for the incident was the repair of an accident vehicle, which is currently a key focus of traditional 4S shops.

According to the shop owner, one of his regular customers owns a CLS model that had undergone accident repairs costing over 200,000 yuan at the involved 4S dealership. Since the front camera still had issues, the shop owner brought the car to the 4S dealership on behalf of the customer for further handling. However, the 4S dealership failed to resolve the problem after three consecutive days, which angered the customer and led to a complaint. In retaliation, the 4S dealership blocked the shop owner's entrance.

In addition, the owner of the specialty repair shop believes that "being too close" is also a reason for the 4S dealership's dissatisfaction. His shop is only 6.5 kilometers away by car from the involved Mercedes-Benz 4S dealership, and they are the only two companies in the area specializing in Mercedes-Benz repairs. The owner stated bluntly, "There was no competition before, but now maybe they're getting anxious."

Certainly, the lower quotes from specialized repair shops, along with the authorization for OEM parts channels, have significantly impacted the basic maintenance and repair business of 4S shops. With this premise, even if a specialized repair shop starts from scratch, it can still have a strong appeal.

According to a previous JD Power survey, over 62% of Mercedes-Benz owners choose independent repair shops after their warranty expires. As profits at 4S dealerships decline, their aggressive "self-rescue" strategies inevitably target nearby independent shops first.

02. 4S dealerships are “counterattacking” in after-sales service—how should specialized repair shops “avoid risks”?

Some time ago, a Lexus 4S dealership in Yinchuan issued a notice reminding car owners that former employees, posing as "brand-certified technicians," have been soliciting business by promising to provide "genuine original parts" at prices "lower than those of the 4S dealership." Car owners are advised to carefully verify such claims. To protect their rights, it is recommended that owners go to officially authorized service centers for repairs. (Details: A luxury car 4S dealership publicly "targets" former technicians, tens of thousands of "4S staff" face severe difficulties and obstacles?)

The announcement itself is carefully worded, with a tactful tone and no abnormalities. However, many specialized repair practitioners believe that "4S is anxious," because currently, in the eyes of a significant proportion of "experienced drivers," "4S stores have nothing to offer except authorization." Especially in recent years, intensified industry competition has forced specialized repair shops to further optimize their technical capabilities, parts quality, and service standards, leading to a noticeable improvement in customer reputation.

Theoretically, taking advantage of car owners' anxiety about 4S dealerships withdrawing from the network, closing down, or going bust, is beneficial for specialized repair shops in attracting customers. Especially with the frequent appearance of "4S dealership avoidance" content on major social media platforms, which further accelerates the erosion of 4S dealerships' compliance and reliability.

However, within the industry chain, 4S dealerships still hold a lead over specialized repair shops. Their advantage at the sales front, along with the natural trust that insurance companies and accident appraisal agencies place in their official authorization, keeps them ahead. If 4S dealerships want to block specialized repair shops, it all depends on whether they can set aside their "dignity" and "status."

AC Auto has compiled the views of some technicians who left to start their own businesses, and their current concerns about 4S stores counterattacking after-sales mainly focus on three aspects:

First, one should not have too high expectations for accident vehicles. Since the implementation of the "prohibition of insurance rebate" regulation last year, various large and small 4S shops have been aggressively securing accident vehicle resources. Many large comprehensive repair shops that relied on "premium for repair referrals" have had to transform.

Moreover, apart from the high-barrier sector of car washing and beauty services, accident vehicles remain a high-margin segment that attracts intense competition. All parties are eager to grab a share of the market. "Newcomers and new shops" must either offer extreme discounts or demonstrate formidable capabilities from the start, otherwise, they won't even be able to enter the race for accident resources.

Second, quick maintenance and repair shops can't stand out from the competition. Even if they have channels for genuine parts and can barely compete with chain stores, this year many 4S dealerships have launched “rock-bottom” maintenance prices. Once the price order collapses, 4S dealerships will not only lock in new car customers but also attract back a large number of existing car owners.

During this year's 618 period, the promotional activities of 4S stores:

BMW has launched a one-time comprehensive maintenance service for owners of vehicles over 5 years old at a price of 599 yuan, and also established a tire section (for example, two Bridgestone tires for the 5 Series priced at 2,625 yuan).

Audi implements tiered locking for loyal customers: vehicles aged 2-6 years enjoy three maintenance services for 1,200 RMB (only 400 RMB per service), while those over 6 years old are charged 600 RMB per service. Simultaneously, a 499 RMB all-model universal painting service and a 1,080 RMB transmission oil replacement service are launched.

FAW-Volkswagen, SAIC-GM, and others have reduced the price of a single basic maintenance service to as low as 299 or even 199 yuan.

Specialized repair shops attract business aggressively with "low prices + original parts authorization," and 4S shops are similarly making bold moves. This is far more impactful than a simple announcement.

Third, there is the issue of qualifications. Similar to the aforementioned case, 4S stores use "infringement" claims to pressure independent repair shops. An owner of another Mercedes-Benz repair shop stated that the shop in Suzhou was able to get away with it because it had authorization from the "Shipei" platform, whereas ordinary shops are more likely to suffer.

More importantly, ordinary stores can hardly anticipate the severity of infringement penalties. In some regions, the market regulatory authorities have differing interpretations of "fair use." For the same infringement involving the Mercedes-Benz trademark and graphic logo, a store in Changsha was fined 5,000 yuan, while a store in Shenyang was fined 27,000 yuan. Even when the penalties are meant to serve as a "lesson," the boundaries remain difficult to grasp.

It can be said that in the general environment where 4S dealerships "make profits from after-sales services," specialized repair shops are under intense pressure during the market reshuffle. Although they have a window of opportunity to gain car owners’ trust, the pressures from compliance, resources, and other aspects continue to increase.

In conclusion

In the incident of the "4S after-sales manager blocking the door of the authorized repair shop," the repair shop owner mentioned, "The customers do not overlap, so there's no need to do this." However, under survival pressure, 4S dealerships have ample reason to "cause trouble," forcing authorized repair shops to strengthen compliance measures as a precaution.

The control of accident resources and price reduction strategies for maintenance by 4S shops does not necessarily mean that specialized repair shops will lose their market. The recognition from car owners is the result of years of accumulation, and on the balance of price and trust, neither side can quickly outweigh the other.

Specialty repair shops have always grown out of tight spaces, facing heavy pressure every year. As described by an industry veteran, "Only through intense competition can the value of these shops be highlighted and their foundations be strengthened."