SHANGHAI (Reuters) – China's market regulator said Wednesday it has fined Ford Motor (NYSE 🙂 Cos joint venture with Changan Automobile Group 162.8 million yuan (23.55 million dollars) to violate the antimony law.
The Market Regulatory Agency said on its website that the joint venture Changan Ford had set a minimum resale price for its cars in the Chongqing Chinese municipality since 201[ads1]3, in violation of the law.
The collaboration did not provide evidence that this followed the country's anti-monopoly law during the investigation, it said.
"Ford Changan's actions deprived downstream dealers of their price autonomy, excluded and limited branding competition, as well as damaging fair competition in the market and consumer's legal interests," it said.
The fine corresponds to 4% of the joint venture sales in Chongqing last year, it added.
Ford and Changan did not immediately respond to requests for comment. Shares in Changan Auto fell by over 5 percent after the news on Wednesday morning.
The regulator's move comes as Ford has struggled to revive sales in China – the second largest market globally for Dearborn, Michigan's automaker – where the business began to slip in late 2017.
Changan's president told Reuters in April that it expects that the sale of its Ford joint venture will return at the end of this year.
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