China will fine General Motors’ Chinese joint venture 201 million yuan ($29 million) for monopolistic pricing, according to state-run television reports in China. The news comes a few days after reports surfaced that the Chinese government was investigating GM over allegations of such behavior.
Government officials claim via state-run television reports that GM and its joint venture partner SAIC Motor Corporation set minimum prices on some Buick, Cadillac and Chevrolet models. Details of the allegations are not entirely clear.
In a statement to Automotive News GM says the cooperate with rules and regulations wherever they operate and that the company will cooperate with the Chinese government regarding this situation.
China began pricing investigations associated with the auto industry back in 2011. At the time, Audi AG, Daimler AG’s Mercedes-Benz, Toyota Motor Corp., and one of Nissan Motor Co.’s joint ventures were the targets.
It isn’t entirely clear yet what led China to begin targeting GM and their joint venture.