Chinese controllers have penalized Ford’s primary joint venture in the nation for breaching antitrust rules. The State Administration for Market Regulation in China fined Changan Ford with 162.8 Million Yuan (almost $23.6 Million) for setting minimum resale costs on its vehicles in the Chongqing city, as per an interview posted on the watchdog’s website this week.
The fine amounts to 4% of the firm’s sales last year in Chongqing. Ford controls 50% of the joint business, with the rest managed by its local associate, state-controlled car manufacturer Changan Automobile. Changan Ford’s deeds deprived downstream vendors of costing autonomy, limited competition, and damaged the lawful interests of users, the watchdog claimed.
Ford claimed that it “admires” the decision of the market regulator. “Changan Ford has taken corrective measures in its management for regional sales along with its vendors,” a spokesperson of Ford claimed to the media in an interview. “As an ethical firm, Ford is pledged to obey local regulations and laws wherever we do business,” the spokesperson claimed.
The decision on a storied American car manufacturer follows at a tense time in US-China war. The rising trade battle between the two nations and tit-for-tat disciplinary measures have sent shivers via the rattled investors and worldwide economy. After Washington banned US firms from supplying essential components and software to Chinese tech behemoth Huawei, Beijing declared that it was establishing its personal blacklist for foreign firms.
On a related note, Ford has steadily but certainly been extending the reach of GoRide ever since it rolled out the non-emergency medical transit platform. Now, the auto manufacturer has disclosed its aims to set up the system to 40 cities all over the nation over the coming 4 Years following a testing period in Toledo, Ohio, and Southeast Michigan (including Detroit).