August 13, 2014
Straight German producers are dependent on the Chinese market. Photo: REUTERS
China takes before the practices in the car industry. Especially German manufacturers depend on the booming market. Price guards may Audi condemn a million penalty. Daimler and BMW are alarmed
China’s competition authorities take the auto industry into the defect. It should go in particular to their pricing. After investigation stood Audi and its Chinese partner FAW violations of anti-monopoly law in their joint venture, such as Audi announced on Wednesday on request. “The Audi joint venture FAW-Volkswagen has worked closely with the investigations with the authorities and will accept a punishment.”
Same time reported the state newspaper “China Daily”, citing investigators, that investigations of price watchman on more than 1000 car manufacturers, suppliers and distributors were extended.
The European Chamber of Commerce accused the Chinese competition watchdogs before a double standard. “In some sectors is not determined against Chinese companies for the same offense,” the chamber said on Wednesday. In addition, in some cases only the international partners, but not the Chinese companies are in studies of joint ventures have been publicly named.
The trial of the German-Chinese Audi joint venture is according to media reports briefly a conclusion. Reports on the possible penalty amount diverged widely. To 1.8 billion yuan (218 million euro) amounted China’s business press on Wednesday the punishment, citing industry sources. Would be based on a percentage of sales of the Audi brand in China
. Cooperation with investigators
hours later put the prestigious Beijing business magazine “21st Century Business Herald” with a report documenting, for relying on government officials. Accordingly, the joint venture expects a fine of 250 million yuan (about 30 million euros). Elf Audi dealer in the standing in the center of investigation in Hubei Province were also fined between each 30 million and 40 million yuan.
Audi would not comment on possible penalties. “Please understand that we do not comment on the process continues as long as the competent authorities have the investigation is not completed and published,” the company said simply.
The joint venture between Audi and FAW shall have established minimum prices for spare parts and services, it said in the media reports. This is prohibited according to China’s competition law. The price monitor can impose sentences of between one and ten percent of sales. The company cooperate concerned, however, the competition authorities may fix lower penalties.
Audi assured his cooperation with investigators. «Audi and FAW-Volkswagen put great emphasis on compliance with all antitrust and competition laws,” it said in the statement. Together with its Chinese partner will be the company “optimize management processes in the sales and dealership structure in order to avoid similar incidents in the future.”
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In the industry there is currently uncertainty over the future actions of the Chinese authorities. Audi, Daimler, BMW, Jaguar Land Rover, Chrysler, Toyota and Honda have already announced price reductions for spare parts.
For weeks grows mainly the pressure on premium producer. China’s market for luxury cars is dominated by the German suppliers Audi, BMW and Daimler. Even against Daimler under investigation, the branch in Shanghai and several dealers had been searched by Price guards. On Tuesday, GM had announced that the company had been contacted by investigators.
However, industry experts speculate about the purpose of investigations. Falling prices finally had an impact on the profits of the Chinese partner. In addition, discounts could further rely on foreign car brands domestic manufacturers under pressure. So far, they try to compete with international brands with cheaper prices. This competitive advantage would be lost to them then increase. (Dpa)
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