Antitrust investigation continues to push for continued price cuts for parts and models

Abstract The storm of antitrust investigations is now blowing sharply. In the automotive field, the National Development and Reform Commission (NDRC) conducted investigations into Chrysler, Audi, and Mercedes-Benz to confirm the monopolistic behavior of penalized manufacturers, and completed investigations into 12 Japanese companies. Immediately to the traditional sales season, gold, nine silver, ten, but each...
The storm of antitrust investigations is now blowing sharply. In the automotive field, the National Development and Reform Commission (NDRC) conducted investigations into Chrysler, Audi, and Mercedes-Benz to confirm the monopolistic behavior of penalized manufacturers, and completed investigations into 12 Japanese companies. Immediately to the traditional sales season, gold, nine silver and ten, but the major luxury car brands began to cut prices on parts and models.

For example, Chrysler, the official guide price of the Grand Cherokee SRT8 is lowered by 65,000, and the 5.7L Zunyue version is lowered by 45,000. At the same time, dealers are required to cut the price of 145 accessories by 20%. However, it is understood that the sales of these two models in Beijing are not ideal, and there is no downward adjustment for the popular models.

BMW China lowered the wholesale price of original parts and components from August 11th. Among them, body parts were lowered by 45%, generators were lowered by 40%, batteries were lowered by 25%, brake discs were lowered by 20%, and some Japanese automakers also announced price cuts. Let's listen to the price cut of 29%, turn the booster pump to 24%, and the radiator to cut the price by 16%.

Zhang Yi, a member of the Expert Committee of the China Automobile Association, said in an interview with Tianxia Company today that the price reduction of luxury cars is not good in addition to the influence of anti-monopoly investigations. This year, the majority of the adjustments are spare parts.

Zhang Yi: One may have something to do with antitrust. Another point to be aware of is that some of the cars are not selling well. Many car dealers may sell cars at a loss. This year, the market for luxury cars is not good and the backlog is serious. Therefore, many price cuts are a kind of promotion. After losing a car at a loss, the income of a car 4S shop depends on after-sales service. The price is too high, and people will not be able to repair it. This is a means of retaining customers. The situation announced by the National Development and Reform Commission two days ago is mainly concentrated on auto parts.

The anti-monopoly investigation aims to maintain the order of the automobile market and promote the fairness of the automobile market. Dong Yang, secretary general of the China Automobile Association, said that the investigation caused some high-end models to cut prices is a good thing.

Dong Yang: To be honest, the profits of imported cars are high. Everyone knows that they all have feelings. The national authorities finally acted. This is good and good for the consumer. But whether it can benefit people who buy low-priced cars, this is debatable. It may be more favorable for buying a premium car.

Since 2011, the relevant state departments have been conducting anti-monopoly investigations on the automotive industry for three years.

At present, the relevant departments continue to increase anti-monopoly efforts. Lexus and Honda's joint ventures have been interviewed, and it has been confirmed that the Mercedes-Benz Shanghai office is being investigated. The 11 Audi dealers in Hubei Province collectively went to Beijing to participate in the interview with the NDRC Volkswagen Audi.

For domestic independent brand car companies and domestic consumers, what does the anti-monopoly investigation continue to advance? Zhang Yi, a member of the Expert Committee of the China Automobile Association, believes that the short-term impact is actually not large.

Zhang Yi: Consumers of imported luxury cars are small niche consumption, which has grown rapidly in the past two years, but has been selling at a reduced price for the past two years. After the European debt crisis and the US financial crisis, the main producing areas of luxury cars were in Europe, and their consumption was decreasing. So many of their products were transferred to China, causing oversupply, and manufacturers gave them too much inventory. In order to deal with the inventory, in order to reduce the pressure on capital, they would rather lose money and sell the car. They have earned a lot in the past few years. Some people may jok that the luxury car is against profiteering. It should be reversed five years ago.

Guo Jie, a commentator on the Voice of the Economy, said that the anti-monopoly investigation is mainly on parts and components. The proportion of vehicles and parts is not coordinated. The ratio of zero to zero is far higher than the world average. Therefore, the relevant departments of the National Development and Reform Commission will impose penalties in this respect. . At present, some luxury car parts have basically been lowered, but because the whole car is mainly market behavior, hot-selling models are not easy to buy now, and it takes a long time to pick up the car. Under such circumstances, it is very difficult to ask for price reduction. .

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