Shanghai fines GM over price-fixing

SHANGHAI’S pricing regulator has fined SAIC-General Motors 201 million yuan (US$29 million) for monopolistic pricing.

The city’s pricing bureau said yesterday that since 2014 the US carmaker’s venture with China’s largest automaker SAIC Motor Corp had set minimum prices on models including the Cadillac SRX, Chevrolet Trax and Buick Excelle GT.

SAIC-GM even made secret inquiries and conducted online surveillance to monitor dealers’ selling prices, and punished those who disobeyed its rules via penalties or deducting their returned profits, the bureau found.

The practice reinforced the need for anti-monopoly enforcement, the bureau said.

“GM fully respects local laws and regulations wherever we operate,” the US company said in a statement. “We will provide full support to our joint venture in China to ensure that all responsive and appropriate actions are taken with respect to this matter.”

The fine equals 4 percent of SAIC-GM’ sales from the relevant products last year and took into account the promise “the company would actively correct its operations in China and stop all the unlawful acts.”

The penalty is the latest against automakers after the National Development Reform Commission began investigations in 2011.

Other companies that have previously been targeted include Audi, Daimler’s Mercedes-Benz, Toyota and one of Nissan’s joint ventures.