Photo: Catalin Garmacea
We understand the competitive character of the automotive world and how carmakers are constantly battling each other for domination. What we don't get is why some would cheat in the process, knowing they are bound to get caught sooner or later.
Mercedes-Benz is in the limelight of a price fixing scandal in China after the three-pointed star company has been accused of price fixing tactics.
According to Automotive News, Mercedes-Benz forced dealers to come up with minimum prices on some models, as well as spare parts. Allegedly, those who ignored Mercedes' 'recommendation' received warnings from the Stuttgart-based manufacturer.
By doing so, Mercedes-Benz trespassed anti-monopoly law, hurting fair market competition and ignoring consumer rights:
"The investigation found Mercedes-Benz and its dealers in Jiangsu came to and carried out monopoly agreements to cap the lowest sales prices of E-class, S-class models and certain spare parts," says a statement from the Jiangsu pricing regulator.
After evaluating the situation, authorities in charge of China's Jiangsu province decided to fine Mercedes-Benz. As a result, the German automaker has to pay a substantial penalty of 350 million yuan ($56 million at current exchange rates).
Furthermore, the same institution fine several Mercedes dealers in Jiangsu with 7.7 million yuan ($1,24 million). It's not the first time when Chinese authorities punish Western carmakers for price-fixing practices after Volkswagen and FCA received fines after being found with their hands in the cookie jar.
According to the same source, Daimler officials issued a statement via e-mail saying "Mercedes-Benz China accepts the decision and takes its responsibilities under the competition law very seriously." Well, it's too little too late, don't you think?
According to Automotive News, Mercedes-Benz forced dealers to come up with minimum prices on some models, as well as spare parts. Allegedly, those who ignored Mercedes' 'recommendation' received warnings from the Stuttgart-based manufacturer.
By doing so, Mercedes-Benz trespassed anti-monopoly law, hurting fair market competition and ignoring consumer rights:
"The investigation found Mercedes-Benz and its dealers in Jiangsu came to and carried out monopoly agreements to cap the lowest sales prices of E-class, S-class models and certain spare parts," says a statement from the Jiangsu pricing regulator.
After evaluating the situation, authorities in charge of China's Jiangsu province decided to fine Mercedes-Benz. As a result, the German automaker has to pay a substantial penalty of 350 million yuan ($56 million at current exchange rates).
Furthermore, the same institution fine several Mercedes dealers in Jiangsu with 7.7 million yuan ($1,24 million). It's not the first time when Chinese authorities punish Western carmakers for price-fixing practices after Volkswagen and FCA received fines after being found with their hands in the cookie jar.
According to the same source, Daimler officials issued a statement via e-mail saying "Mercedes-Benz China accepts the decision and takes its responsibilities under the competition law very seriously." Well, it's too little too late, don't you think?
Google News