On August 7, 2026, the official findings of the investigation into the online rumors of a "clash between Chery executives and dealers"—which had captivated the automotive sector's attention for over two months—were made public. Following the reporting of the case, the Economic and Technological Development Zone Branch of the Wuhu Municipal Public Security Bureau confirmed that the offender, Hu (a 37-year-old male), had utilized AI to create and spread false information and rumors. The facts were verified, and he was appropriately penalized administratively, with the penalty now fully enforced.

Hu admitted to his illegal actions and presented written and video apologies to Chery and the executives whose reputations were tarnished. The public security authorities are delving deeper into other instances of malicious dissemination related to the incident.

In June of the same year, a message suddenly surfaced online, claiming that a Chery executive had a heated confrontation, even escalating to physical violence, with the head of a major dealer over issues such as sales targets and inventory pressure. As numerous self-media accounts continuously reposted, edited, and expanded upon the content, it quickly went viral. Given the ongoing price wars in the automotive industry in recent years, with dealers generally grappling with inventory and profitability challenges, terms like "inventory pressure," "rebates," and "manufacturer-dealer relations" lent an air of credibility to the rumors.

On June 3, Chery's legal department issued a statement, categorically denying the online rumors of a "dispute and even physical altercation between Chery executives and dealers" as purely fictional and maliciously concocted. The company had reported the matter to the public security authorities and vowed to hold the rumormongers legally accountable in accordance with the law.

In fact, Chery had been alleviating the burden on its dealership channels in the first half of the year. "After reaching 20 million vehicles, Chery will no longer engage in ruthless competition or solely chase sales volume. Instead, we will strive for brand elevation, value creation, greater innovation, more technological breakthroughs, and a significant boost in customer satisfaction," revealed Yin Tongyue, Chairman of Chery, at the Chery Fengyun launch event on July 25.

According to official data from Chery Group, a total of 1.3575 million vehicles were sold in the first half of 2026, marking a 7.7% year-on-year increase and setting a new record for the same period. In July, sales reached 276,800 vehicles, up 23.3% year-on-year, continuing the upward trajectory.

This also sends a resolute message, as it marks the first instance where Chery's legal department publicly disclosed and persistently pursued rights protection on Weibo.

Furthermore, there are legal proceedings underway. Chery has initiated a defamation lawsuit against Xi'an 2626 Automotive Information Consulting Services Co., Ltd. (operating the WeChat official account "Chief Advisor's Car Club" and the WeChat video account "Chief Advisor Talks Cars") and has secured the court's first-instance judgment. "The judgment determined that the defendant fabricated online slang with overtly vulgar and derogatory implications, amounting to malicious defamation of Chery's corporate reputation. The defendant is legally culpable for infringement and is mandated to issue a top apology for no less than 30 days and compensate Chery for its losses."

Chery will persist in safeguarding its rights in accordance with the law, holding those accountable for various rumors and other illicit activities and accounts fully responsible, and preserving a clear online public opinion environment.

A rumor devoid of any evidentiary support was transformed into an "established fact" through incessant reposting, editing, and expansion, ultimately unjustly entangling a high-performing enterprise in a public opinion maelstrom and causing undue reputational harm to the enterprise, its executives, and even its partners.

Spreading a rumor takes but a moment, yet refuting it demands considerable effort. Such scenarios should no longer persist in the Chinese automotive circle.