China Fines Ford's Changan JV $24 Mln For Anti-monopoly Law Violation

(RTTNews) - China's market regulator said Wednesday that it has imposed a fine of 162.8 million yuan, or $24 million, on Ford Motor Co.'s (F) joint venture with Changan Automobile Group for violating anti-monopoly law.

The State Administration for Market Regulation said on its website that since 2013, Changan Ford Motor Co. has set a minimum resale price for its cars in the Chongqing region, in violation of the law.

"The above behavior of Changan Ford deprived the downstream dealers of pricing autonomy, excluded and restricted the competition within the brand, actually weakened the competition among brands, and damaged the fair competition of the relevant market and the legitimate interests of consumers," the regulator said.

According to the anti-monopoly law, the regulator imposed a fine equivalent to 4 percent of the joint venture's sales in Chongqing in the previous year.

Ford is struggling to return to profitable growth in China, the world's largest vehicle market. In October 2018, the company said it is reorganizing its Asia Pacific operations to accelerate a return to profitable growth and also announced the hiring of a new president and Chief Executive Officer for Ford China.

As part of the reorganizing, Ford China was elevated to a stand-alone business unit reporting to Ford global headquarters.