Ford's car venture fined for controlling retail prices
Automotive News China
Automotive News | 2019-6-7
Changan Ford Automobile Co., Ford Motor Co.¡¯s car joint venture, was ordered to pay a fine of 163 million yuan ($23.6 million) by China¡¯s market regulator for manipulating retail prices for its dealers in the southwest China municipality of Chongqing. |
Changan Ford has been controlling retail prices since 2013 for dealers in Chongqing by signing pricing agreements with them and setting price floors for their vehicles sold at local auto shows and online, China¡¯s State Administration for Market Regulation said Wednesday.
Such actions violate China¡¯s anti-monopoly law, the market watchdog added.
Changan Ford said in a statement Wednesday that it respects the ruling.
The ruling deals another blow to the company, which continues to suffer steep sales declines this year.
Changan Ford, headquartered in Chongqing, is a 50-50 partnership between Ford and with Changan Automobile Co. It produces and markets sedans and crossovers for the Ford brand.
For the first four months of this year, deliveries of Changan Ford nosedived 69 percent year on year to 51,597, according to Changan, a state-owned Chinese automaker listed on the Shenzhen stock exchange.
In 2018, the joint venture¡¯s sales slumped 54 percent to 377,739.
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