Chrysler Group and Volkswagon JV fined heavily for price fixing in China.
Chinese regulators have heavily fined two more multinational carmakers for price fixing in China on September 11, 2014. While Volkswagen JV was fined $40.5 million by the Hubei Bureau of Price Supervision, seven of its Audi dealers were fined 29.9 million Yuan. Chinese authorities are allowed to penalize companies amounting to 1-10 percent of their annual sales for the previous year.
The Shanghai government fined Chrysler Group China Sales for 31.6 million Yuan, which is about three percent of its 2013 sales in Shanghai. In addition, three Chrysler dealers were fined 2.14 million Yuan, according to the National Development and Reform Commission (NDRC).
If this step is to be taken by precedent, more automakers will join the barrage of heavy fines under China’s Anti-Monopoly Act.
Dispelling claims from international companies that they are being targeted for anti-monopoly investigations, the NDRC has stated three Chinese authorities are quite understaffed, with less than 100 staff members at disposal, to specifically target companies.
It also clarified that only one-tenth of the companies involved in the probes are foreign. At present, the commission has questioned 335 companies under the investigation, with only 33 being foreign.
The consequent probe by the State Administration of Industry and Commerce too has included foreign companies that form only one-fifth of all companies in investigation.
Photo Credits: Reuters