China levies $29 mn fine on GM’s Chinese joint venture for monopolistic pricing
24 Dec 2016
China has imposed a $29 million (201 million yuan) fine on General Motors' Chinese joint venture for monopolistic pricing, state-run China Central Television (CCTV) reported yesterday.
The move comes two years after Audi, Fiat Chrysler Automobiles, Mercedes-Benz, Toyota Motor and one of Nissan Motor's joint ventures were fined a total of $302 million on similar charges.
The fines were also imposed on several Japanese auto parts suppliers on price-fixing charges.
The Shanghai Price Bureau alleged that GM's Chinese joint venture SAIC General Motors improperly hurt competition by setting minimum prices with its dealers on certain Cadillac, Chevy and Buick models.
The fine is equivalent to 4 per cent of the said models' sales revenue in the previous year, the report said.
''GM fully respects local laws and regulations wherever we operate ... We will provide full support to our joint venture in China to ensure that all responsive and appropriate actions are taken with respect to this matter,'' the Detroit-based carmaker said in a statement.
Shanghai GM, in which GM holds a 49-per cent stake and SAIC 51 per cent, is GM's largest joint venture in the world's largest auto market, while SAIC is China's largest auto maker by sales.
China accounts for 37 per cent or $2.1 billion in operating profit of GM's global vehicle sales.
With demand remaining particularly strong for small and midsize passenger cars, SUVs and luxury vehicles, GM's retail sales in the first 11 months of 2016 grew 8.5 per cent on an annual basis to 3,435,788 units.
