Prices of Jeep Grand Cherokee SRT8 and Grand Cherokee Summit cut in China

Article by Andrew Christian, on August 8, 2014

Chrysler Group is trimming the prices of the Jeep Grand Cherokee SRT8 in China by CHY65,000 ($10,500) and the Grand Cherokee Summit by CHY45,000 ($7,300) following a report that it has become a subject of an anti-monopoly investigation by the National Development and Reform Commission.

China National Radio reported that the NDRC in Shanghai was near to closing a probe into possible monopolistic practices at Chrysler and said that Chrysler would be punished in the near future.

Chrysler will also trim prices of around 145 high-value and high volume warranty components by 20 percent. Daphne Zheng, managing director of Chrysler Group China Sales Limited, remarked that the price cuts were voluntary and the carmaker would “look for additional opportunities” to proactively improve its competitive offer in China.

NDRC is also probing Mercedes-Benz. China has deepened its efforts to make foreign companies comply with an anti-monopoly law passed in 2008 by setting its eyes on industries as like milk powder and jewelry.

The NDRC is also investigating practices of Mercedes-Benz, Audi and BMW AG, and Japanese carmakers to determine whether the companies are inflating prices for spare parts, people privy with the matter divulged in July.

Audi’s joint venture in the country announced in July that it is trimming prices by up to 38 percent, while Mercedes recently disclosed that it intends to cut prices of replacement parts that will average 15 percent starting in September.

Media reported that around nine officials from NDRC’s anti-monopoly department paid a surprise visit to Mercedes’ Shanghai office. Han Weiqi, an analyst at CSC International Holdings remarked that the timing of the raid is a bit confusing, may be because the carmaker’s price cuts failed to meet the authorities’ expectations.

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