Chang’an Ford: Antitrust violation in China-A fine of about ¥ 2.6 billion

Chang’an Ford: Antitrust violation in China-A fine of about ¥ 2.6 billion

Shanghai

June 07, 2019

China: National Market Supervisory Administration

June 5 announced that Changan Ford Special Automobile (Changan Ford) violated the Antimonopoly Act (Anti-discrimination Act).

A fine of 162.8 million yuan (approximately 2,64.8 million yen, 1 yuan = approximately 16 yen) is to be imposed.

Chang’an Ford:

Starting in 2013, Chongqing City has created its own price list for dealers and ordered the lowest selling price.

A fine equivalent to 4% of annual sales in Chongqing was imposed.

US Automotive Companies: Antitrust Violations

2014: Shanghai City Bureau of Price and Market to Chrysler’s Chinese sales company 31,168 million yuan,

2016: General Motors (GM) ‘s China sales company was fined 201 million yuan

Chang’an Ford: Recent Achievements

Changan Ford has continued to experience sluggish sales in recent years.

Unit sales decreased by approximately 70% from January to April 2019

2016: Sales reached a record high of 957,000
2017: 828,000 units,
2018: It fell with 377,800 units.
January-April 2019: A significant decrease to 51,597 units, down 69.3% from the same period last year.
Net profit also dropped to 729 million yuan in 2018 from a surplus of 18.165 billion yuan in 2016.

-JETRO

https://www.jetro.go.jp/biznews/2019/06/cb539970aadad441.html

Ford Is Fined in China as Trade Fight With U.S. Rages – The New York Times

https://www.nytimes.com/2019/06/05/business/china-ford-antitrust-trade-war.html