China may penalize U.S. automaker over price fixing
December 19, 2016 Category Automotive, Weekly
Shares of U.S. automakers General Motors and Ford Motor dropped after Zhang Handong, Director of the National Development and Reform Commission’s (NDRC) Price Supervision Bureau warned the government could slap a penalty on an unnamed U.S. automaker for monopolistic behavior. In a statement, GM did not say directly whether it was under investigation by Chinese authorities. “GM fully respects local laws and regulations wherever we operate,” the company said. “We do not comment on media speculation.” A spokesman for Ford’s Asia-Pacific operations said the company was “unaware of the issue.” The China Daily said investigators had found that a U.S. auto company had instructed distributors to fix prices starting in 2014. China, the world’s largest vehicle market, is crucial to GM. Chinese consumers bought more than one-third of the 9.96 million vehicles GM sold globally in 2015. Profits from Chinese operations, including joint ventures, accounted for about 20% of GM’s global net income of USD9.7 billion in 2015. Ford’s China joint ventures represented about 16% of its global pretax profit of USD9.4 billion in 2015.
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