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Chinese Cash Squeeze Causes Auto Dealer Panic, Group Says

China’s cash crunch is spreading to the nation’s auto dealerships as they become increasingly reluctant to ship their vehicles to neighborhood car lots without upfront payment.

“With the cash squeeze, authorized dealers are no longer willing to hand over their cars on good faith,” Chi Yifeng, general manager of Beijing Asian Games Village Automobile Exchange, a car shopping plaza, said in an interview yesterday. “They’re holding tighter to their capital and are more cautious about their business plans.”