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Toyota tops global automaker sales in Q1
by Staff Writers
Tokyo (AFP) April 23, 2015


China province fines Mercedes Benz $56 mn for price fixing
Beijing (AFP) April 23, 2015 - Chinese authorities fined Mercedes-Benz 350 million yuan ($56 million) on Thursday for violating anti-monopoly laws and price fixing, investigators said.

"After an investigation, Mercedes-Benz dealers in Jiangsu province were found to have implemented a fixed minimum price for E- and S-class vehicle parts in violation of the anti-monopoly law," said a statement from the Jiangsu province pricing bureau.

Minimum prices were also set for entire E- and S-class cars between January 2013 and July 2014, the statement said.

Three dealerships, in the cities of Nanjing, Wuxi and Suzhou, were separately fined a total of 7.9 million yuan.

The German automaker said it was being investigated in August, but refused to provide more details.

Investigators said price-fixing meetings were organised at some Mercedes dealerships in the eastern province as far back as November 2010.

State media last year said pricing authorities had evidence that Mercedes-Benz controlled prices of its spare parts and maintenance services.

At the time the official Xinhua news agency cited data from the China Automotive Maintenance and Repair Trade Association as showing the total cost of all spare parts for some cars could be 12 times more than a finished model.

It quoted Zhou Gao, head of anti-monopoly department at the price bureau as saying: "The Benz case involves typical vertical price-fixing."

The Jiangsu probe was part of a wider inquiry by China's National Development and Reform Commission (NDRC), one of several government bodies that probes violations of the country's "anti-monopoly" law.

Mercedes-Benz said in early August that it would cut spare parts prices from September in response to the NDRC's actions.

The case comes against a backdrop of sweeping investigations into foreign firms in China in sectors ranging from pharmaceuticals and baby formula to autos.

More than 1,000 companies in the country's auto sector, both domestic and foreign, have been probed by the authorities, the China Daily newspaper has reported.

Toyota kept the title of world's biggest automaker on Thursday with first-quarter sales of 2.52 million vehicles globally, outpacing Volkswagen and General Motors, despite weakening demand at home.

The Japanese giant's numbers, down 2.5 percent from a year ago, come after the German automaker earlier said it moved 2.49 million vehicles in the quarter, while US-based GM shifted 2.4 million units, both up from a year earlier.

Toyota expects sales this year to slip to 10.15 million from a record 10.23 million vehicles in 2014, owing to a shaky outlook for Japan, concerns about a China slowdown and as it beefs up its focus on quality after a string of safety scandals.

That means Volkswagen could shift into pole position as the German automaker rides momentum in emerging economies that could see it take the lead in global auto sales for the first time in 2015.

Camry and Prius maker Toyota broke GM's decades-long reign as the world's top automaker in 2008 but lost the crown three years later as Japan's 2011 earthquake-tsunami disaster hammered production and disrupted the supply chains of the country's automakers.

However, in 2012 it once again overtook its Detroit rival, which sells the Chevrolet and luxury Cadillac brands.

Thursday's sales figures come a week after Toyota ended a freeze on building new factories by unveiling plans for a $1.0 billion plant in rising industry power Mexico and another production line in China

The Japanese carmaker began operating a new Thai plant in 2013, but since then it has halted investment as the global car market struggled with oversupply and weak demand.

Despite the expansion, Toyota chief Akio Toyoda said his family firm would not embark on unrestrained expansion, as it overhauls its production methods to slash development costs.

While the car giant is set to log a record $18 billion fiscal year profit next month, largely due to a weak yen and strong North American sales, Toyoda said the company must do more to protect its bottom line in a fast-changing market.

"An increase in production does not mean an undisciplined pursuit of more," he said.

Toyota, among other major automakers, has been struggling to recover a reputation for safety after the recall of millions of cars around the world for various problems, including an exploding air bag crisis at supplier Takata.

There are also growing fears about the entire industry's prospects in China owing to concerns about the health of the world's number-two economy.

pb/hg/mtp

Toyota

Volkswagen

General Motors

Takata


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