China's National Development and Reform Commission (NDRC), the country’s anti-monopoly regulator, has fined Volkswagen Group and Chrysler with a combined $46 million penalty for price fixing. NDRC’s branch in Shanghai has disclosed a CHY32-million ($5.22 million) for operating a price monopoly.
The regulator’s Hubei branch said it would impose a CHY249-million penalty against the sales unit of FAW-Volkswagen Automobile Co. Ltd. for price fixing at its Audi sales unit. NDRC also disclosed that three Chrysler dealers in Shanghai and eight Audi dealers in Hubei would also be fined.
NDRC has already announced that it had concluded the Chrysler and Audi had breached the anti-monopoly law, with the latter admitting to "partially" violating the rules.
The fine imposed against Chrysler and Audi means that similar penalties could be expected for other global carmakers also being investigated for possible anti-competitive behavior by Chinese authorities, like Mercedes-Benz and Jaguar Land Rover.
China is probing into a number of industries, including the auto industry, as part of its bid to have companies comply with its anti-monopoly law. In August, China fined 12 Japanese suppliers around CHY1.235 billion for manipulating prices.