# XCMG Faces Canadian Lawsuits Alleging Serial Number Tampering Defrauded Dealers

> XCMG faces civil lawsuits in Canada alleging serial number tampering defrauded equipment dealers, with Arctic Machinery bankrupt.

- Published: 2026-10-17T02:07:06+00:00
- Section: Legal & Disputes
- Author: News Desk
- URL: https://newsforagent.com/news/2026-10-17/xcmg-canada-lawsuit-dealer-fraud-claims
- Source: [Global News](https://globalnews.ca/news/12106044/chinese-xcmg-lawsuit-defrauding-equipment/)

## Key takeaways

- XCMG faces civil lawsuits in Canada alleging it defrauded equipment dealers by tampering with serial numbers on equipment.
- Arctic Machinery purchased approximately $18 million in XCMG-branded inventory and went bankrupt after XCMG called in its loans.
- RCMP in Alberta's K Division confirmed its auto theft unit carried out a search warrant at XCMG's headquarters in April and the investigation is ongoing.

XCMG, the Chinese state-owned heavy equipment manufacturer, is facing civil lawsuits in Canada alleging it defrauded equipment dealers by tampering with serial numbers on machinery, according to [Global News](https://globalnews.ca/news/12106044/chinese-xcmg-lawsuit-defrauding-equipment/). XCMG Canada said it is fully defending the claims. Arctic Machinery, a dealer that bought approximately $18 million in XCMG-branded inventory, went bankrupt after XCMG called in its loans.

## The Allegations and the Dealers Involved

At Vancouver's law courts on Friday, veteran heavy equipment dealer Ryan Martin said his family company, Arctic Machinery, started with XCMG in 2017 and business was good up until about 2021. Arctic Machinery has dealerships in Prince George, Chilliwack and Kelowna. Martin said the quality of the equipment changed several years ago.

"It's destroyed our family," Martin said. "It's destroyed our family business."

Martin said other XCMG dealers in Canada had similar problems and that in troubleshooting them they found evidence to support their claim. "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," he said. As an example, he said a machine built in 2020 would be sold to them as a 2022 machine.

In July, a Saskatchewan dealer filed a suit against XCMG alleging unlawful tampering with serial number plates on equipment sold to them in Alberta this year. LTR Equipment, based in Quebec, filed a similar case, and a lift company in Ontario has also filed a case alleging serial numbers were tampered with.

In a statement to Global News, XCMG Canada said: "Arctic Machinery purchased approximately $18 million in XCMG-branded inventory, which it did not pay for." The company added: "XCMG is fully defending the claims in the civil actions." Martin said his family company was forced into bankruptcy when XCMG called in its loans, which he said was in retaliation for blowing the whistle on the alleged serial number tampering.

RCMP in Alberta's K Division confirmed that members of their auto theft unit carried out a search warrant at XCMG's headquarters in April and the investigation is ongoing.

## XCMG's Recent Global Expansion

XCMG has continued expanding internationally in recent months. In September 2026, Trishakti Industries placed a purchase order with XCMG for 60 units of heavy machinery and AWPs at ₹105.39 crore, according to The Tribune. XCMG also sold 251 electric trucks to Brazilian grain transporter Navarini in a R$500 million deal, signed in Xuzhou, Folha reported. In the same month, XCMG broke ground on its first overseas remanufacturing center in Balikpapan, Indonesia, on Sept. 16, according to PR Newswire.

## What to Watch Next

The RCMP investigation into XCMG's headquarters, confirmed by Alberta's K Division, remains ongoing. The civil lawsuits filed by dealers in Saskatchewan, Quebec and Ontario continue in Canadian courts. XCMG Canada has said it is fully defending the claims.

## Companies in this story

- XCMG Group · website: http://xcmg.com

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