Economy · 18 d ago
Huangdan2060 · CC BY 3.0 · Wikimedia Commons
Canadian dealers sue Chinese equipment maker XCMG, alleging fraud
Dealers in several provinces allege in civil suits that the Chinese state-owned company tampered with serial number plates to sell older machines as newer ones. A Saskatchewan dealer, LTR Equipment in Quebec and a lift company in Ontario have filed cases.
"As an example, it would be built in 2020, but really sold to us as a 2022 machine."
— Ryan Martin, Arctic Machinery, B.C.
Inventory XCMG says Arctic Machinery did not pay for
18 million $
XCMG Canada said Arctic Machinery bought about $18 million in inventory it did not pay for, and that it is fully defending the claims. None of the allegations has been proven in court.
What we know
- RCMP searched XCMG's headquarters in April
- Several dealers have filed civil suits
Not yet
- Whether any charges will follow
- How the courts will rule
The RCMP in Alberta confirmed its auto theft unit searched XCMG's headquarters in April, and the investigation is ongoing.
