global carmakers.jpg (Photo : Reuters)
As punishment for price-fixing, the antitrust regulator of China sanctioned Fiat's Chrysler and Volkswagen AG a fine totaling $46 million.
The said first-ever punishment issued to global car manufacturers will likely be followed, with Tata Motor Ltd's Jaguar Land Rover and Daimler's Mercedes-Benz as subsequent subjects of investigation on "anti-competitive behavior."
A statement from the Shanghai Municipal Development and Reform Commission said that it will fine Chrysler's sales in China $5.22 million for monopolizing car price.
Hubei province's price regulator issued a $40.8 million fine to FAW-Volkswagen Automobile Co Ltd's for fixing prices at its Audi sales unit. According to the regulators, eight Audi and three Chrysler dealers in the province will also be fined.
Since China's implementation of its Antitrust Law in 2008, many carmakers have been scrutinized under the anti-monopoly policy.
The National Development and Reform Commission (NDRC) has found Chrysler and Audi to have breached the policy; Audi has previously admitted to "partially" breaching the law.
The NDRC has taken intensive checks on global carmakers' sales following state media accusations of overpricing.
In August, domestic brands were significantly outstood, because U.S., Asian and European brands have been spending heavily to capture the taste of Chinese consumers.
Compared to the 5.7-percent August sales growth of China-branded vehicles, those of global competitors went double or triple. In a nutshell, the sales of German, Japanese and American brands rose 21.6 percent, 15.1 percent and 13 percent, respectively.
