China fines Ford’s Changan venture $24 million for violating anti-monopoly law – Investing.com

Stock Markets9 hours ago (Jun 04, 2019 11:44PM ET)

© Reuters.  China fines Ford's Changan venture $24 million for violating anti-monopoly law
© Reuters. China fines Ford’s Changan venture $24 million for violating anti-monopoly law

SHANGHAI (Reuters) – China’s market regulator said on Wednesday it has fined Ford Motor (NYSE:) Co’s joint venture with Changan Automobile Group 162.8 million yuan ($23.55 million) for violating anti-monopoly law.

The State Administration for Market Regulation said on its website the joint venture, Changan Ford, had set a minimum resale price for its cars in the Chinese municipality of Chongqing since 2013, in breach of the law.

The joint venture did not provide evidence that this complied with the country’s anti-monopoly law during the investigation, it said.

“Ford Changan’s actions deprived downstream dealers of their pricing autonomy, excluded and restricted competition within the brand, as well as damaged fair competition in the market and consumer’s legal interests,” it said.

The fine is equivalent to 4% of the joint venture’s sales in Chongqing last year, it added.

Ford and Changan did not immediately respond to requests for comment. Shares in Changan Auto fell by over 5 percent after the news on Wednesday morning.

The regulator’s move comes as Ford has been struggling to revive sales in China – the second biggest market globally for the Dearborn, Michigan automaker – where its business began slumping in late 2017.

Changan’s president told Reuters in April that it expects sales at its Ford joint venture to rebound at the end of this year.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Read More