Core Viewpoint - The handling of the transformation pains in the Chinese automotive industry is crucial for its high-quality development, as evidenced by the recent issues faced by automotive dealers and the impact on consumer trust [1][4]. Group 1: Industry Challenges - The automotive dealership sector is experiencing significant challenges, including high inventory levels, market competition disorder, and increased risks of financial chain breakage, leading to frequent closures and bankruptcies of dealerships [3][4]. - The number of automotive 4S stores in China is projected to decrease to 32,878 by the end of 2024, marking a 2.7% decline from the previous year, with 4,419 stores expected to exit the market, representing the first negative growth since 2021 [3][4]. Group 2: Relationship Dynamics - The relationship between automotive manufacturers and dealers is under strain, necessitating a shift from a zero-sum competition mindset to a cooperative approach to build a healthier industry ecosystem [4][5]. - A new cooperation mechanism involving government, manufacturers, and dealers is essential to establish a long-term model of shared risks and benefits [4]. Group 3: Responsibilities and Solutions - Automotive manufacturers must take on daily management responsibilities for their authorized dealers, as consumer trust is often tied to brand reputation rather than dealer performance [5]. - Dealers are urged to communicate promptly with consumers regarding store closures and to provide clear solutions, including the return of stored parts and the restoration of after-sales services [5].