A car dealership in the northwestern Chinese city of Xi’an has reached a compensation agreement with a dissatisfied customer whose complaints about a Mercedes-Benz purchase sparked public outcry, according to multiple media reports.

On Tuesday night, Xi’an Lizhixing Automobile Co. Ltd. announced the deal made with Wang Qian, a pseudonym given to the customer by domestic media, after video and audio recordings circulated widely online in which Wang claimed that the dealership had sold her a faulty Mercedes-Benz and charged her a “financial services fee” of 15,000 yuan ($2,200). The dealership said it has agreed to provide Wang with VIP services for the next 10 years, a replacement car, and a full refund of the fee as compensation.

The same day, Mercedes-Benz reportedly issued a statement apologizing for the ordeal, saying that operations at the dealership — an authorized reseller of the German brand’s cars — had been suspended while the automaker conducts an investigation.

Multiple government agencies have also taken action amid the scandal: Official investigations have been launched in Beijing and Xi’an, while crackdowns in the industry have been announced by the China Consumers’ Association and the market regulators of Xi’an and Shaanxi province. (Image: IC)