China fines more automotive companies

Fresh from convicting Audi, Mercedes-Benz and Chrysler, China’s anti-monopoly avengers have now hit the car industry’s Japanese supplier base.

China’s anti-monopoly regulator, the National Development and Reform Commission (NDRC), has slapped a A$220 million (1.24 billion yuan) fine on 12 Japanese suppliers after convicting them of price fixing.

In a statement, the NDRC said it four bearing makers and eight car parts suppliers were convicted of collusion, with the biggest culprits being Sumitomo Electric Industries and Yazaki.

The sweeping investigation, which was an extension of the one into aftersales parts prices from major imported car companies, also nabbed Aisan Industry, Denso, Furukawa Electric, Hitachi Automotive Systems, Jtekt, Mitsuba Corp, Mitsubishi Electric, Nachi-Fujikoshi, NSK and NTN.

All of the suppliers have been convicted under China’s 2008 anti-monopoly law, which allows for penalties from one to 10 per cent of a company’s Chinese revenues from the previous year.

The NDRC said parts from the convicted suppliers were used in more than 20 models sold in China, including cars from Ford, Honda, Nissan, Suzuki and Toyota.

The parts suppliers were caught up in a sweeping review of automotive practices in China, which saw Mercedes-Benz and Chrysler convicted, with Audi also fined $44 million before it announced parts price cuts of up to 38 per cent.