Auto market anti-monopoly investigation will land a number of car companies will receive a ticket

Abstract Law enforcement agencies really want to "handle" the suspected monopolistic behavior in the auto market. The "Economic Information Daily" reporter learned from a number of auto companies, industry associations and distributors that the heads of many well-known car companies in the Asia-Pacific region...
Law enforcement agencies really want to "handle" the suspected monopolistic behavior in the auto market this time.

The "Economic Information Daily" reporter learned from a number of auto companies, industry associations and dealers that the heads of many well-known car companies in the Asia-Pacific region received anti-monopoly investigations by the National Development and Reform Commission's price supervision and inspection and anti-monopoly bureau last week. The agency confirmed that some auto companies have suspected monopolistic behaviors such as horizontal restrictions, vertical restrictions and abuse of market dominance, and will soon issue relevant penalties.

The person in charge of a well-known car company said that it would approve the above investigations and will actively cooperate with the NDRC's anti-monopoly law enforcement work.

An industry insider revealed that the relevant departments have actually organized a large number of manpower from 2011. With the help of relevant industry associations and academic institutions, they have done a lot of research on these problems in the automobile market and conducted trial enforcement in some places.

"An imported Land Rover with an ex-factory price of about 500,000 should not sell for more than 1.3 million after tax payment in China, but the final price is sold at 1.89 million. A Beijing Mercedes-Benz ratio is 1273%, replacing all spare parts. The cost can buy 12 new cars, and once the car goes wrong, consumers must also purchase the original parts for repair in the 4S shop, 4S shop can not 'outside' accessories." One talk about car distribution and after-sales Missing high prices, price limits and tying, and a manager of a 4S shop in Chengdu, Ms. Yin, is somewhat indignant.

Since the entry into force of the Anti-Monopoly Law in 2008, the restrictive competition that took place in China's auto market has gradually attracted the attention of all circles. The reporter has previously learned from car companies and 4S shops in Beijing, Shanghai, Hubei and other places that auto companies are on the whole vehicle. The price of accessories, after-sales service is limited, and the resale price of the whole vehicle and accessories is limited, as well as the exclusive supply of original parts, which are not uncommon.

The reporter’s previous investigation found that as an entity with independent legal personality, it is not a car 4S shop of a car supplier subsidiary, but now it has a serious “dependency” for the car supplier, and the latter has fully controlled the high amount of the 4S shop. Cost-established distribution network.

This can be seen from the recent high-profile announcement by Beijing Mercedes-Benz Sales Co., Ltd. to reduce the after-sales maintenance costs of automobiles nationwide.

“When is the adjustment of the maintenance price announced by the Mercedes-Benz to announce it?” An expert from the China Automobile Dealers Association believes that this should be within the independent pricing range of the 4S store, but now it has made the car companies “more and more”. Although the car companies have gradually eliminated the price control of the 4S shop on the contract, in fact this control has not disappeared, but it is more concealed.

Some experts said that this relationship between auto suppliers and 4S stores actually has the characteristics of vertical monopoly behavior. In China's automobile distribution and after-sales market, the more common form of vertical monopoly behavior is the unilateral behavior in the form of business policies, circulars, information, notices, etc. issued by automobile suppliers to dealers.

Specifically, the automobile supplier directly fixes or limits the resale price of the dealer, the sales profit of the fixed dealer, limits the maximum discount of the dealer to the customer, and limits the fluctuation range of the resale price; the automobile supplier requires the 4S shop to distribute only End users (including individuals and business users) in the region sell cars; when auto suppliers supply tight models to 4S stores, they sell fixed-selling models, and when they supply new cars to 4S stores, they can buy original parts. To constitute a monopolistic behavior regulated by the Anti-Monopoly Law.

In the after-sales market, the reporter found that in China's automotive after-sales market, the original spare parts are exclusively supplied, the original parts are tying and repairing services, and the availability of maintenance technical information is relatively low, and the "bad consequences" of these phenomena are in China. In the automotive aftermarket, the zero ratio can reach an abnormally high 12:1.

"Automobile after-sales and distribution is different, the after-sales market may be defined by brand." The National Development and Reform Commission said that the maintenance and repair requirements of specific brands and models use applicable accessories, including original parts and non-original parts. Among them, non-original parts of comparable quality may become strong competitors of original parts. When the non-original parts compatible with the whole vehicle are limited, the user is locked after purchasing the new car. This locking effect is an objective cause of the distortion of the zero ratio. This is especially true for high-end brand cars.

In the repair service, some areas also have the phenomenon of horizontally limited working hours between 4S stores.

The so-called horizontal restriction of competition behavior refers to agreements, decisions or other concerted actions of two or more competitive operators to exclude and restrict competition. In the automotive market, the behavior of different 4S stores through series connection and raising the after-sale price is in line with this feature. Experts said that the horizontally limited working hours between 4S stores is a price cartel that is prohibited by the Anti-Monopoly Law, and it is unlikely that the behavior will be eligible for exemption.

It is worth mentioning that China’s law enforcement agencies will also take action on the US case of penalizing Japanese auto parts manufacturers’ price cartels this year. The "Economic Information Daily" reporter asked the officials of the National Development and Reform Commission for price supervision and inspection and the Anti-Monopoly Bureau's investigation. The officials said that they had already carried out relevant investigations and had accepted the "self-sufficiency" of Japanese manufacturers, and soon there will be punishment results.

In the past two years, the National Development and Reform Commission's Price Supervision, Inspection and Anti-Monopoly Bureau has been promoting the relevant provisions of the Anti-Monopoly Law through different channels. Deputy Inspector Lu Yanchun said at the 2013 China Automotive Circulation Annual Meeting that as a business operator, in some peer meetings, regional meetings, business cooperation or the formation of industrial alliances and strategic alliances, it is necessary to avoid discussion and agreement on prices; Price Limits The Anti-Monopoly Law prohibits operators from reaching a fixed resale price with a counterparty to the transaction, or a monopoly agreement that limits the minimum resale price; at the same time, care should be taken to avoid abuse of market dominance.

â– Background link

Those things that car companies and dealers have done in those years.

In January 2014, the “Economic Information Daily” reporter visited a number of BMW [microblogging] 4S stores in Beijing and found that almost all BMW 4S stores had forced tying insurance when they sold cars. The staff said that when buying a new car at a 4S store, consumers are not allowed to choose other channels (such as telephone insurance) to purchase insurance in the first year, and must purchase it at the 4S store. If the consumer chooses to purchase the loan in installments, they must be insured in the store during the repayment period. Once the incident caused a strong social concern, the BMW responsible person responded that this phenomenon does not exist. After a lapse of several months, the reporter once again found that the above phenomenon still exists in the BMW 4S store, as well as some 4S stores including high-end car brands such as Audi and Mercedes.

At the end of 2013, the head of the Central China Business Department of the Audi Sales Division of the Audi Sales Department issued a notice to all distributors in Hubei District, requesting all 4S dealers in Audi Hubei District to fully implement the Audi maintenance standard price system from January 1, 2014. The notice was severely worded, saying that if the dealers were not satisfied, they would not only be deprived of the “significant claim”, but their general manager (including the deputy general manager) would also be transferred from the Audi brand. In this regard, a number of dealers said that although they are not willing to raise prices, because this involves multiple interests, it is easy to cause unnecessary troubles; there is no way for them to do so, they can only do it hard.

At the end of 2011, the Hangzhou Municipal Price Bureau announced that nine dealers in Guangzhou Honda Hangzhou had repeatedly agreed on the monthly limit of the retail price of each model of Guangzhou Honda in the form of a monthly regular meeting, and colluded to set the minimum retail price. In this regard, the Hangzhou Municipal Price Bureau issued a fine of 3 million yuan to these 9 dealers.

In early 2011, Beijing Benz Sales and Marketing Department released the "Beijing Benz Business Policy" with the theme of "Beijing Benz Limit Price and Restricted Interregional Policy". The policy clearly stipulates that Beijing Benz implements strict price management and restricts cross-regional sales policies within the network. The policy not only stipulates the lowest price for Mercedes-Benz sales, but also prohibits Beijing Benz dealers from selling across regions. This policy made the dealer's originally sluggish business worse, which aroused the dissatisfaction of the dealers, and later confessed to Beijing Benz to the relevant industry associations.

Metal Polishing Wax Paste Compounds

Metal Polishing Wax Paste Compound ,Yellow Buffing Wax,Solid Wax For Mirror Polishing,White Car Wax

NINGBO HENGHUA METAL SURFACE TREATMENT TECHNOLOGY CO.,LTD. , https://www.henghuametal.com

This entry was posted in on