Not the best time to be a German car manufacturer in China in terms of dealing with the courts…
Money Control .com reports
China to fine Audi $40m for breaking monopoly law Citing an unidentified source which the paper described as authoritative, the fine to be imposed on Audi – a unit of Germany’s Volkswagen AG – is calculated based on a percentage of its 2013 car sales in the central province of Hubei.
China will fine German premium auto brand Audi around 250 million yuan (USD 40.63 million) for violating anti-monopoly laws, the 21st Century Business Herald, an influential business daily, reported on Thursday. Citing an unidentified source which the paper described as authoritative, the fine to be imposed on Audi – a unit of Germany’s Volkswagen AG – is calculated based on a percentage of its 2013 car sales in the central province of Hubei. Under the six-year-old anti-monopoly law, the National Development and Reform Commission (NDRC), China’s anti-trust regulator, can impose fines of between 1 and 10 percent of a company’s revenues for the previous year. Also read: Audi launches A3 sedan, price starting at Rs 22.95 lakh Audi could not immediately be reached for comment. The NDRC has been investigating the business practices of Audi’s sales arm with dealers in Hubei. Audi had already said its sales arm – a joint venture with state-owned FAW Group [SASACJ.UL] – had violated “part” of the country’s anti-monopoly laws, and that it would accept the penalty. An array of industries have been coming under the spotlight as China intensifies efforts to bring companies into compliance with its anti-monopoly law enacted in 2008. The auto sector has been under particular scrutiny, and the NDRC has been investigating the industry amid accusations by state media that global car makers are overcharging consumers. Other global carmakers under investigation for anti-competitive behaviour include German luxury brand Mercedes-Benz, a unit of Daimler AG, and Chrysler, a unit of Italy’s Fiat SpA. (1 US dollar = 6.1531 Chinese yuan)
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