Chinese Regulators Fed Up With High Parts Prices - Probing Almost Every Import Brand In The Country

The Chinese regulators have started a deep impact investigation into monopoly allegations surrounding foreign auto brands, accused by local media to lift prices on spare parts, vehicles and services.

For now, the anti-monopoly probe seemed to affect the premium manufacturers – BMW, Audi, Mercedes-Benz, America’s Chrysler and Britain’s Jaguar Land Rover. But late last week, the Japanese automakers Toyota and Honda joined the trend and lowered their prices.

In direct relation to the investigation started by the National Development and Reform Commission (NDRC), late on Friday both GAC Toyota and Guangqi Honda revealed they would lower prices. The two are Toyota and Honda’s respective joint ventures with China’s GAC Group. So far, Nissan’s joint venture with China’s Dongfeng has not moved to reposition its prices, but said it was following the regulator’s advices and studying necessary measures.
 

jeffgall - 8/11/2014 3:09:14 PM

+1 Boost

You know what the great thing is about a free market. If you do not like the price of a product, do not buy it. The competition can come in with a more competitive one.

MattDarringer - 8/11/2014 3:30:20 PM

+1 Boost

The problem is that China is anything BUT a free market. China ignores patents, protects domestic brands, and is predatory against non-Chinese brands.

I say let's put a 500% tax on every Volvo for being a "Chinese" brand.

40flash - 8/11/2014 10:41:09 PM

0 Boost

Matt is right again. I just today watched a piece about the hundreds of manufacturers in China that are making fake golf clubs that mimic Ping, Taylormade, Calloway & others. Some of the clubs look so good that Ping and the other makers couldn't tell the difference. The fakes were tested by an independent tester and they didn't perform nearly as consistently as the real ones. The American factories are losing millions and the Chinese government seemingly won't do a thing to stop it. And they're complaining about the high cost of car parts?