Chrysler and Audi Are Investigated on Monopoly in China
Posted: 08/14/2014 08:08:12 Edited: 08/14/2014 09:08:17 Clicks: 2165
Recently, Li Puming, the secretary general of Development and Reform Commission, disclosed on press conference that Audi and Chrysler's survey showed the two car companies indeed had monopolistic behaviors and they would be punished accordingly soon. He also said, "The National Development and Reform Commission recently completed monopoly investigation of automotive parts toward 12 Japanese companies, and would conduct punishment according to law."
This was not the first time that Japanese auto parts enterprises were punished. The United States Department of Justice notified on September 26 last year that nine Japanese companies admitted to manipulating the price of American auto parts including Hitachi and Mitsubishi. They were about to pay a fine of more than $ 740 million.
"No country would tolerate monopoly profits earned by foreign-funded enterprises.” Said Cui Dongshu, the vice secretary general of China Passenger Cars Association.
It can be expected that the prices of luxury cars, spare parts and maintenance will decline as the penetration of antitrust investigation. Chinese consumers will usher in better consumer environment. For related car enterprises and dealers, the impact is difficult to avoid. The pattern of the entire Chinese auto industry will present significant changes.
Facing antitrust investigation, a number of multinational car companies have started to announce lower component prices in response, including Chrysler, Audi and Mercedes-Benz. At present, China's luxury car market is dominated by foreign brands, among which Audi, BMW and Mercedes-Benz jointly own 70 percent of market share.
In fact, many car companies cope with the inspection by cutting prices. Take Chrysler for example, it declined prices of some products and spare parts by 20%. The Price of flagship Jeep Cherokee SRT8 was lowered by 65,000 yuan.
This was not the first time that Japanese auto parts enterprises were punished. The United States Department of Justice notified on September 26 last year that nine Japanese companies admitted to manipulating the price of American auto parts including Hitachi and Mitsubishi. They were about to pay a fine of more than $ 740 million.
"No country would tolerate monopoly profits earned by foreign-funded enterprises.” Said Cui Dongshu, the vice secretary general of China Passenger Cars Association.
It can be expected that the prices of luxury cars, spare parts and maintenance will decline as the penetration of antitrust investigation. Chinese consumers will usher in better consumer environment. For related car enterprises and dealers, the impact is difficult to avoid. The pattern of the entire Chinese auto industry will present significant changes.
Facing antitrust investigation, a number of multinational car companies have started to announce lower component prices in response, including Chrysler, Audi and Mercedes-Benz. At present, China's luxury car market is dominated by foreign brands, among which Audi, BMW and Mercedes-Benz jointly own 70 percent of market share.
In fact, many car companies cope with the inspection by cutting prices. Take Chrysler for example, it declined prices of some products and spare parts by 20%. The Price of flagship Jeep Cherokee SRT8 was lowered by 65,000 yuan.
