I've actually always wondered about that. I often see loads of Mercedes/BMW/Lexus/Porsche cars parked around old buildings where the rent is less than 150$/month. If what you say is true (companies giving Mercedes to their employees), why is this? Or do some Chinese prefer owning an expensive car rather then living in a nice place?
I said "work unit" and I'm talking about government employees :) The government gives them the car and they use their connections to "qualify" for subsidized housing (the kind they are building for the poor!). So the result is a lot of Audi's parked around public housing.