Over 70 owners of the Xiaomi SU7 Ultra are demanding "a refund and triple compensation," claiming that negotiations with the vice president were unsuccessful, while Xiaomi executives deny any statements of "collapse."

On May 17, Red Star Capital Bureau reported that recently, the incident involving the Xiaomi SU7 Ultra's perforated carbon fiber front cover has been continuing to escalate.

On the evening of May 15, online writer and car owner representative "Fengyun XTony" posted on social media stating that after the car owners expressed their intention to sue, Xiaomi (01810.HK) Vice President Li XX and General Manager of Sales and Delivery Service Department Zhang X recently had an offline meeting with him for more than three hours. Both parties "fully exchanged opinions, had a frank conversation, and enhanced mutual understanding. The meeting was beneficial, but unfortunately, no final plan was reached."

On May 16, the car owner mentioned above told Hongxing Capital Bureau that the members of the rights protection litigation group he belongs to all advocate for defending their rights through litigation, which is expected to take more than half a year.

The above-mentioned car owner representative stated that Xiaomi acknowledged there were issues with the promotion, but indicated that agreeing to users' requests to unsubscribe would "directly lead to the collapse of Xiaomi's automotive business." The car owners do not agree with this and stated that they will maintain dialogue going forward. Currently, the rights protection lawsuit group that the car owner belongs to has exceeded 70 members, who plan to jointly sue Xiaomi for false advertising and demand "a refund plus triple compensation."

"The topic 'Xiaomi Auto Vice President Claims Cancellation of Xiaomi Will Collapse' has topped Weibo's trending searches. That evening, Xiaomi Auto Vice President Li Xiaoshuang posted on Weibo, stating, 'In the past few days, I met many industry friends during my business trip and communicated face-to-face with some car owners about the issues everyone is concerned about, fully listening to everyone's voices. However, throughout the process, I never mentioned the information rumored today. Currently, all related reports are false; I urge those spreading rumors to be respectful.'

Previously, car owners believed that Xiaomi Auto had advertised that the carbon fiber dual-air duct front hatch has a dual-air duct aerodynamic design, can assist heat dissipation, improve downforce and other functions, and also implied that it has a special internal structure and the ordinary version cannot be modified. This uniqueness and sense of high-end is the reason why many people are willing to spend 42,000 yuan as an option. However, the owners found that the part did not actually have the aerodynamic function advertised, and changed from a "functional part" to a "decorative part", and the ordinary version of the model can also be modified for thousands of yuan.

In a letter of apology on May 7, Xiaomi Auto stated that the issue was due to "insufficient clarity in information expression" and provided two solutions: for undelivered orders, a limited-time modification service will be offered to revert to the aluminum front cover; for users who have already picked up their cars and selected the carbon fiber dual air duct front cover before the end of this limited-time modification, they will receive 20,000 points as a gift.

This explanation and solution have not been accepted by car owners. Lin Wei, a lawyer at Beijing Jingshi (Shanghai) Law Firm, stated: "The standard for determining false advertising behavior mainly lies in whether the operator uses advertisements or other means to make misleading false claims about the key information of goods or services."

Lawyer Wang Dong from Guangdong Huashang (Yangzhou) Law Firm stated: "If Xiaomi Auto engages in false advertising, the compensation plan for misleading consumption caused by the 42,000 yuan perforated front cover should cover the loss of functional premium, and car owners can claim 'refund one and compensate three' for the front cover."

(Source: Hongxing Capital Bureau)

Source: East Money

Author: Hongxing Capital Bureau