Audi to accept punishment from China’s anti-monopoly commission

Article by Christian A., on August 14, 2014

Audi will accept any punishment meted out by authorities for violating national anti-monopoly laws. Audi said in a statement e-mailed to Automotive News Europe that authorities found its dealer arm in the country -- FAW-Volkswagen Sales Co. -- to have breached anti-monopoly laws.

Audi’s statement came after China's National Development and Reform Commission (NDRC) disclosed that it had been probing into the auto industry in China for over two years. The NDRC had also launched similar investigations into other foreign companies in other industries like pharmaceuticals, technology and baby milk.

Volkswagen Group established up the FAW-VW joint venture to produce Audis and other models in China. According to Audi’s statement, it is now improving the management processes in the sales and dealership structure to prevent similar incidents from happening in the future.

The statement, however, did not explicitly say whether Audi acknowledged any wrongdoing. Audi said in the statement that the carmaker and its unit “attach great importance that all applicable antitrust and competition laws are adhered to.” The country’s renewed vigor in clamping down companies perceived to be engaged in monopolistic behaviors.

Such crackdowns, however, are threatening to end an era when some products like luxury cars generate more profits in China than in the United States or the United Kingdom. In July, the NDRC pressured at least seven carmakers to trim prices and even raided the offices of Microsoft Corp.

The investigations have foreign companies fending for themselves trying to interpret the laws and regulations in a country that has become less dependent on foreign investment. David Loevinger, former Treasury Department senior coordinator for China affairs, remarked that they could be a paradigm shift in China “where the rules of the game are changing." [source: automotive news - sub. required]

Topics: audi, china

If you liked the article, share on:

Comments

Recommended

When Chevrolet came out with the 2018 Equinox last September, the facelifted model was offered in a diesel option for the first time, plus it weighed much less at 400...
by - July 23, 2017
If you are a huge fan of the hardcore GTS version, you probably know that the closest you could get to that model is the upgraded model of the M4...
by - July 23, 2017
Audi’s intention to bring out the Renn Sport Racing version of the Q5 was made clear when it unveiled the Audi SQ5 at the 2017 Detroit Motor Show early this...
by - July 22, 2017
Kia’s Sorento midsize sports utility vehicle is reaching its mid-cycle for the 2018 model year. Thus, its fans, enthusiasts and satisfied customers are expecting the Sorento to receive an update...
by - July 22, 2017
The Lotus Evora Sport 410 astonished the world after arriving as the more powerful and lighter edition of the already impressive Evora 400. Now, Lotus Cars is throwing in another...
by - July 22, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries