Many have been wondering which company a Chinese official was referring to when they said the country was planning to fine a U.S. automaker. And now we know.
China’s state-run TV network reported Friday that the National Development Reform Commission will fine General Motors’ joint venture with SAIC Motor Corp. $29 million for monopolistic pricing, according to Reuters.
“GM fully respects local laws and regulations wherever we operate,” GM told Reuters in an email. “We will provide full support to our joint venture in China to ensure that all responsive and appropriate actions are taken with respect to this matter.”
China Central Television reported that GM is accused of setting minimum prices for multiple Cadillac, Buick and Chevrolet models, via Reuters.
An NDRC official reportedly told China Daily on Dec. 14 the commission was set to fine a U.S. manufacturer, but they didn’t say which one. As a result of those comments, both GM and Ford’s stocks took a hit.
Industry insiders reportedly told Reuters that many think the fine is a warning to President-elect Donald Trump’s administration.
Some are speculating the NDRC’s announcement was retaliation to Trump’s criticism of the “One China” policy, and the appointment of Peter Navarro as a trade adviser. Although it’s believed the NDRC’s investigation into GM was already underway at the time of those two things.
Thumbnail photo via General Motors