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Wednesday, December 28, 2016

GM's Chinese Joint Venture Fined $29 Million For Price Fixing

Confirming last week's report, GM's Chinese joint venture has been fined 201 million yuan ($29 million) by local authorities for monopolistic pricing.

Shanghai Daily reports that, after General Motors joined forces with SAIC Motor Corp, the company set minimum prices in 2014 on an array of models including the Buick Excelle GT, Chevrolet Trax and Cadillac SRX.

In an investigation conducted by Shanghai's pricing regulator, it was discovered that SAIC-GM practiced online surveillance in order to ensure dealerships were charging the minimum amounts for its models. If they weren't, they could be hit with penalties or a deduction in returned profits.

In a statement, General Motors 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 Shanghai regulator had been conducting similar investigations in 2011 and has previously targeted Mercedes-Benz, Toyota and Audi.


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