An American buyer paid Zhenjiang Zibon Electric Vehicles Co., Ltd. 32,000 USD for a fascinating-looking electric sports car and turned into a victim, unfortunately. The Chinese company swallowed the money and shipped a tiny “Cute Pink” to him. It’s actually a very cheap car with poor quality and it can be bought in the Chinese market for less than $2,000. The buyer made a video to expose the whole scam as a reminder to others on Youtube.
Also, one of our clients came to us for help after being scammed by this company:
His father spent his life savings buying some electric cars from this company, but the supplier never shipped the products.
We also did some research on the company on Google. Here is what you can find by searching this company’s name on Google:
You can try to search the company’s English name on Google yourself. Then you will find the examples we listed here are not the only victims.
The company’s Alibaba page has been taken off, but its profile on Global Sources is still available. We did a background check on the company.
Here is the company profile on Global Sources:
What it says on its website VS our investigation
1. Establishing Date
(Survey data 1)
The company claims that it was established in 2009, while actually it was established in 2019.
2. Enterprise Type
(Survey data 2)
(Survey data 3)
(Survey data 4)
The company claims that it specializes in the development, production, marketing, and customer service. But the record in our database shows it’s actually a small company that mainly focuses on wholesale and retail business. And we could see this company hasn’t any information shown on intellectual property aspect, which means the company is small and does not seem to have any research and development ability.
3. Number of Employees
(Survey data 5)
(Survey data 5)
It’s easy to see that the company claims that it has experienced designers, engineers, management personnel, and works. But the data show that the company does not have any insured employees (legally-contracted employees should be insured in China). This is typically seen in a recently-established small Chinese company where only the founders actually work in it.
4. Enterprise Risk
(Survey data 6)
(Survey data 7)
(Survey data 8)
While the company has no negative record in either corporate risk or litigation, we still need to be vigilant to avoid being involved in fraud when working with such companies. Their credit background is clean only because they are new. Also, a company with no record in every important aspect cannot be involved in many business activities.
After analyzing the company’s background, we also analyzed its products listed on Global Sources.
Product of the company on Global Sources
If you are a Chinese citizen who has some knowledge about the Chinese electric vehicle market, you will know that this “car” looks exactly the same as the Ora electric car produced by Great Wall Motors.
If you buy this car from Zhenjiang Zibon and sell it in your country, not only will the quality not be guaranteed, you may also be sued by Great Wall Motors, which is a state-funded big car manufacturer.
Let’s take a look at other “cars” this Chinese supplier sells on Global Sources:
Again, if you are familiar with the China electric vehicle market, you will know instantly from the pictures about what kind of cars Zhenjiang Zibon is selling – these cars belong to the “Elderly mobility scooters (老年代步车)”. A lot of old people in China cannot afford a real car or are too old to get a driver’s license, but they still have to travel without being rained on in a faster manner. Also, driving a real car requires a driver’s license, but since this type of “car” is not legally recognized as a car in China, old people can drive them without proper licenses. You can see in this video about the qualities of this type of “cars”. But I can give you a hint first: this type of “car” is also called a “moving coffin” in China.
How to avoid this kind of scam:
1. Check the credit backgrounds of Chinese suppliers beforehand and eliminate the suspicious ones.
2. Do as much market research as you can to get more knowledge about the kind of products you are going to import from China: Not everything can be made in China, and not everything is suitable to be made in China!
3. Hire quality inspection services during the production process, and have weekly meetings with your Chinese supplier to check the quality.
4. Hire quality inspection services before shipment.
5. Do not pay 100% in advance.
6. Do not trust too much. There are over 14 billion people in China. Good people abound here as well as the bad ones.
7. Seek legal help if you are scammed. Don’t waste your time in communication with a bad supplier. Sue him and make him on the Official List of Dishonest Persons in China so people will know he has a bad credit record.
Zhenjiang Zibon Electric Vehicles Co., Ltd. (镇江智邦电动汽车有限公司) has changed its name to Jiangsu Youlumei Electric Vehicles Co., Ltd. (江苏优路美电动汽车有限公司). I think the company is planning to scam more international buyers with its new name. Fortunately, we can always find its change records. Spread the words and help more importers to avoid this scammer.