Date
20 October 2017
Foreign carmakers are cutting the prices of their vehicles and auto parts as authorities continue their antitrust and price-fixing probe. Photo: Bloomberg
Foreign carmakers are cutting the prices of their vehicles and auto parts as authorities continue their antitrust and price-fixing probe. Photo: Bloomberg

Foreign carmakers slash prices amid antitrust probe

Foreign automakers have started to cut auto parts prices amid anti-monopoly probes by Chinese authorities, a move that could be seen as a sign of deferring to the government, National Business Daily reported Wednesday.

Chrysler said Tuesday it will cut prices of 145 auto parts by an average 20 percent. Meanwhile, the price of its flagship SUV model Jeep Grand Cherokee SRT8 will be reduced by 65,000 yuan (US$10,551.90), the paper said.

A Chrysler official was quoted as saying the move aims to express the company’s gratefulness to consumers and is also in response to the pricing investigation by the National Development and Reform Commission (NDRC).

The economic planner has nearly finished its probe into Chrysler Shanghai and Audi in Hubei. The companies had been found to have violated anti-monopoly law, the report said.

The NDRC also paid a visit to Mercedes-Benz’s Shanghai office on Monday. Officials held talks with the company’s senior executives, focusing on Mercedes-Benz’s price-fixing policy in China, the paper said.

Mercedes-Benz on Sunday announced a reduction in auto parts prices by up to 29 percent.

Jaguar Land Rover and Audi unveiled similar price reductions on Aug. 1, the paper said.

More carmakers are expected to follow suit in cutting prices as the antitrust campaign has just started, an official with the China Auto Association was quoted as saying.

Companies may face penalties of one to 10 percent of their yearly turnover if they were found violating China’s anti-monopoly law, a NDRC official told the paper.

– Contact us at [email protected]

KZ/AC/JL

EJI Weekly Newsletter

Please click here to unsubscribe