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Business / Auto Policy

China fines Mercedes-Benz $57m

By Hao Yan (chinadaily.com.cn) Updated: 2015-04-23 12:48

China fines Mercedes-Benz $57m

The logo of Mercedes-Benz is seen on the wheel of the new version of A-Class car during its launch in Mumbai March 11, 2015. [Photo/Agencies]

Jiangsu province has announced a 350 million yuan ($57.1 million) fine on Mercedes-Benz, and 7.87 million yuan fine on some of its dealerships for their monopolies in finished vehicles and auto parts.

Jiangsu Provincial Price Bureau announced Thursday that Mercedes-Benz and the dealerships in Jiangsu province entered into monopoly agreements that violated the Chinese Anti-monopoly Law.

The German luxury carmaker said in its written reply that "Mercedes-Benz fully respects and accepts the findings and punishment decision, and will comply immediately.

"At the same time, we have developed, through a comprehensive self-examination, a series of targeted reform measures guided by the law enforcement authorities. Having drawn important lessons from this, we will ensure strict compliance with relevant laws, strengthening the legal and regulatory controls within our company, dealer network, and various business divisions to resolutely ensure that these issues do not arise again."

The bureau?said from January 2013 to July 2014, the company forced the floor prices of Mercedes-Benz E-Class, S-Class finished cars through phones, verbal notices, or dealer meetings. The company also warned of reducing the support to dealers who did not comply with the price-fixing.

The carmaker also organized regional dealer meetings and entered the price fixing agreement of some auto parts with dealers from Suzhou since November 2010, and with dealers from Wuxi and Nanjing, capital of Jiangsu province, from January 2014.

Mercedes-Benz has lead and impelled the monopoly practices, so it was fined with 7 percent of its last year's sales revenue in the related market. The dealers were fined with 1 percent. The price bureau mitigated or waived the fines to those dealers who provided critical proofs.

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