GM Playing Dirty Pool in China?

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China will fine General Motors’ joint venture 201 million yuan ($29 million) for monopolistic pricing, state television reported on Friday, ending speculation after an official warned of penalties against a U.S. carmaker.

Shanghai’s pricing regulator said it would fine GM’s venture with China’s largest automaker SAIC Motor Corp. for setting minimum prices on certain Cadillac, Chevy and Buick models, according to China Central Television.

“GM fully respects local laws and regulations wherever we operate,” the U.S. automaker said in an emailed statement. “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.”

SAIC did not immediately respond to a request for comment.

The fine follows comments by U.S. President-elect Donald Trump questioning the “One China” policy and his naming of Peter Navarro, a hardliner on trade with China, as a trade adviser, although there is no evidence that the penalty is a form of retaliation.

An official at the National Development Reform Commission on Dec. 14 told state-owned China Daily that the commission would fine a U.S. automaker for monopolistic behavior, sending GM and Ford Motor Co. shares skidding.

Auto industry sources have told Reuters the investigation was already under way before Trump’s recent comments, although it has raised fears that China could be seizing on the case to send a shot across the bow of the incoming U.S. administration.

The penalty is the latest against automakers after the commission began investigations in 2011, with Audi AG , Daimler AG’s Mercedes-Benz, Toyota Motor Corp., and one of Nissan Motor Co.’s joint ventures previously being targeted.

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  1. SAIC Motor Corporation Limited (informally SAIC, formerly Shanghai Automotive Industry Corporation) is a Chinese state-owned automotive design and manufacturing company headquartered in Shanghai, China, with multinational operations. A Fortune Global 100 company and one of the “Big Four” state-owned Chinese automakers (along with Chang’an Motors, FAW Group, and Dongfeng Motor),[6] the company had the largest production volume of any Chinese automaker in 2014 making more than 4.5 million vehicles.[7] Its manufacturing mix is not wholly consumer offerings, however, with as many as 1,000,000+ SAIC passenger vehicles being commercial vans.

    https://en.wikipedia.org/wiki/SAIC_Motor

    So the Chinese government fines a joint venture between GM and …the Chinese government.

    And what’s with the picture of Gomez Addams? I always thought he was a pretty much a capitalist kind of guy.

    • Every foreign company doing business in China is a “joint” venture with the Chinese government. Otherwise you don’t get to play there. That’s why some tech companies don’t do business in China due to having to turn over technology to the government.

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