GM in talks with China’s antitrust agency

Following reports that Chrysler and Audi may be penalized by China’s antitrust regulator, General Motors has acknowledged an ‘active’ role in the agency’s industry investigation.

The National Development and Reform Commission has targeted foreign automakers and parts suppliers over pricing policies that are allegedly monopolistic, as Chinese buyers are sometimes forced to pay three to four times higher for imported models.

GM’s joint venture with China’s state-owned automotive manufacturer, SAIC Motor, reportedly agreed in 2012 to help the agency with its investigation and research, the company told Bloomberg. It is unclear if the interactions have been entirely positive, or if GM is among the list of companies facing potential punishment.

Shanghai GM claims its models are “priced at a reasonable level, with almost no markups in sales,” with parts prices equivalent to three times the cost of a new vehicle, allegedly similar to US pricing.

Major automakers are currently partaking in a gold rush as they jockey for position in the world’s largest automotive market. Some have blamed the seemingly exorbitant prices on freight, import duties and other government fees.

Chinese law allows the NDRC to fine a company up to ten percent of its previous year’s revenue for violating antitrust regulations.