Question on giving distributors vans to not lower prices? If they are selling so much why the crazy deals?

Ok guys part of the more wierd yongye story.  Ok so yongye refuses to give out the names of their distributors, ok so I decided to dig more into it.  Ok so I found out they giave distributers a free vehicle if they in their word NOTE 10 – OTHER ASSETS

During the three months ended March 31, 2010 and December 31, 2009, the Company entered into agreements with certain distributors, including sub-distributors (the “Distribution Agreement”), pursuant to which the Company provided the distributor a free vehicle in exchange for the distributor agreeing to comply with certain sale conditions during the term of the agreement of five years. The sales conditions included (1) meeting the annual sales target set by the Company; (2) not selling the products at a price lower than the price stipulated by the Company; and (3) selling the products only in Company’s approved territories. To the extent the distributor fails any one of these conditions during the term of the agreement, the Company has the right to have the vehicles return back to the Company.

 

 

This is completely wierd, if their product is selling out like crazy, why would they need to give away free cars to distributors.  This is an out of the ordinary practice, I dont know of any company giving away free cars to distributors.