Date
20 August 2017
Audi is the first carmaker in China to admit anti-competitive behavior in the ongoing antitrust crackdown on the car industry. Photo: Bloomberg
Audi is the first carmaker in China to admit anti-competitive behavior in the ongoing antitrust crackdown on the car industry. Photo: Bloomberg

Audi faces 1.8 bln yuan antirust fine

Audi A.G., a unit of German auto giant Volkswagen A.G., could be fined 1.8 billion yuan (US$292.7 million) for breach of China’s anti-monopoly law, Beijing Times reported Wednesday.

The penalty is equivalent to 1 percent of Audi’s 2013 sales in China, the report said.

On Monday Audi said it engaged in anti-competitive practices, the first carmaker to make the admission since China began an antitrust crackdown on vehicle manufacturers.

Authorities in Hubei province investigated Audi for alleged price-fixing after 11 of its sales agents formed a cartel on car parts, after-sales services and insurance.

The company took steps to stop the practice and promised to prevent similar incidents from happening again, Zhang Peijie, general manager of FAW-Volkswagen, was quoted as saying.

Also, Audi said it will accept punishment.

Meanwhile, antitrust regulators are looking into GAC Toyota and GAC Honda after they slashed the price of certain car parts by as much as 20 percent.

Similar cuts were made previously by Mercedes-Benz, BMW, Jaguar, Land Rover and Audi, the report said.

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