Volkswagen, Chrysler fined by China's regulator for breaking anti-monopoly rules
China's anti-monopoly regulator Thursday announced its first punishment of foreign carmakers for price fixing, fining Volkswagen Group and Chrysler Group a combined 281 million yuan ($45.8 million).
The penalty raised the possibility of similar fines being levied against other global automakers such as Mercedes-Benz and Jaguar Land Rover, which are being investigated for possible anti-competitive behavior.
The Shanghai branch of the National Development and Reform Commission said in a statement that it would fine Chrysler's China sales unit 32 million yuan for operating a price monopoly.
The price regulator in Hubei province announced it would fine the sales unit of FAW-Volkswagen Automobile Co., one of Volkswagen's two China carmaking ventures, 249 million yuan for price fixing at its Audi sales unit.
Three Chrysler dealers in Shanghai and eight Audi dealers in Hubei also will be fined, the regulators said.
Punishment for Chrysler and Audi has been widely expected as the National Development and Reform Commission earlier said it had concluded the two carmakers had broken the anti-monopoly law. Audi already had admitted "partially" breaching the rules.
Officials at Chrysler in China could not be reached for comment. A spokesman at Audi in China said the company was preparing a statement.
Many industries have been coming under scrutiny as China intensifies efforts to bring companies into compliance with its anti-monopoly law enacted in 2008.
Last month, China fined 12 Japanese suppliers a record 1.2 billion yuan for manipulating prices.
The auto sector has been under particular scrutiny, and the National Development and Reform Commission has been investigating the industry amid accusations by state media that global carmakers are overcharging consumers.
The Shanghai branch of the National Development and Reform Commission said in a statement that it would fine Chrysler's China sales unit 32 million yuan for operating a price monopoly.
The price regulator in Hubei province announced it would fine the sales unit of FAW-Volkswagen Automobile Co., one of Volkswagen's two China carmaking ventures, 249 million yuan for price fixing at its Audi sales unit.
Three Chrysler dealers in Shanghai and eight Audi dealers in Hubei also will be fined, the regulators said.
Punishment for Chrysler and Audi has been widely expected as the National Development and Reform Commission earlier said it had concluded the two carmakers had broken the anti-monopoly law. Audi already had admitted "partially" breaching the rules.
Officials at Chrysler in China could not be reached for comment. A spokesman at Audi in China said the company was preparing a statement.
Many industries have been coming under scrutiny as China intensifies efforts to bring companies into compliance with its anti-monopoly law enacted in 2008.
Last month, China fined 12 Japanese suppliers a record 1.2 billion yuan for manipulating prices.
The auto sector has been under particular scrutiny, and the National Development and Reform Commission has been investigating the industry amid accusations by state media that global carmakers are overcharging consumers.
