This article was originally published on August 12, 2014 at 10:45 pm
- Chinese regulators plan to fine FAW-Volkswagen Automobile Co. RMB 1.8 billion over alleged monopoly, as reported by eeo.com.
- The article also suggests that regulators plan to fine 11 Audi dealers in Hubei province with penalties ranging from RMB 6 million to RMB 50 million.
Why It Matters:
- FAW-Volkswagen Automobile Co. is a joint venture between Faw Car (CH: 000800), Audi AG (FRA: NSU) and Volkswagen AG (FRA VOW), to produce Volkswagen and Audi cars in China. Faw Car holds a 60% stake in the joint venture, followed by Volkswagen with a 20% stake and Audi with a 10% stake.
- The fine levied is based on 1% of total sales for 2013. If confirmed, this would be the largest fine that Chinese regulators have levied since 2008 when China first introduced its anti-monopoly laws.
- The article suggests that Chinese regulators also plan to fine Chrysler and other foreign auto makers in the near future.