The National Development and Reform Commission has reached a final verdict on its anti-monopoly investigation in the automobile industry, the National Business Daily reported today. In an official statement, NDRC Spokesman Li Pumin said that Cadillac and Audi were found to be guilty of engaging in monopolistic practices. Furthermore, 12 Japanese auto part providers were also found guilty. All of the accused parties have already been penalized according to the law. Mr. Li added that Mercedes-Benz is still under investigation.
Audi's penalty may be as much as 100 million RMB ($16.23m). Meanwhile, a spokesperson from Cadillac's customer service company added that Cadillac has already reduced the price of some of its autoparts and products.
A representative from a top joint venture enterprise explained: "Monopolistic practices, as defined by [government legislation, in the automobile industry have allowed certain manufacturers to gain a favorable position in the market."
Shen Jinjun, acting deputy secretary of the China Association of Automobile Dealers, commented that the anti-monopoly legislation is very strict, and will help discourage other competitors from mimicking Cadillac and Audi's practices. Analysts point out that managers from across the industry have taken note and have already begun phasing out any questionable policies.
Despite not being indicted in the investigation, Jaguar Land Rover already reduced the price of three of its models by an average of 200,000 RMB ($32,459) per vehicle a few weeks ago. Not long after, FAW-VW Audi also reduced the prices of some of its models, including its top selling Audi A6L.
