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Allegations of Serial-Number Tampering by Chinese Heavy-Equipment Maker XCMG in Canada
By Drooid · · How we work
Alleged Serial-Number Tampering by XCMG
Veteran dealer Ryan Martin of Arctic Machinery says that XCMG’s equipment quality began to decline around 2021. He alleges that the company altered serial-number plates and misrepresented model years to end-users.
Impact on Arctic Machinery and Other Canadian Dealers
Arctic Machinery, which operates dealerships in Prince George, Chilliwack and Kelowna, purchased roughly $18 million of XCMG-branded inventory. Martin says the dealer was forced into bankruptcy after XCMG called in its loans, which he characterizes as retaliation for exposing the alleged tampering. Similar complaints have been filed by a Saskatchewan dealer (lawsuit in July), LTR Equipment in Quebec, and a lift company in Ontario, all alleging serial-number manipulation.
XCMG Canada’s Official Response
In a statement to Global News, XCMG Canada acknowledged the lawsuits but denied wrongdoing. No admission of serial-number alteration was made.
Verbatim Quotes
- “The quality of the equipment that time was not what the quality was in the past,” — Ryan Martin
- “There was a process of changing serial number plates and changing the years of the machines in order to maybe misrepresent to the end user what they were buying,” — Ryan Martin
- “As an example, it would be built in 2020, but really sold to us as a 2022 machine,” — Ryan Martin
- “Arctic Machinery purchased approximately $18 million in XCMG-branded inventory, which it did not pay for.” — XCMG Canada