Shanghai GM staff says antitrust probe report incorrect

A report about Shanghai General Motor (GM) being embroiled in an antitrust investigation is a misunderstanding, news portal yicai.com reported Tuesday, citing a staff member at the company's PR department.

"The news about Shanghai GM being investigated for monopolistic practices is incorrect and is a misinterpretation of a statement we issued previously," an unnamed Shanghai GM PR staff member told yicai.com.

Bloomberg had reported on Monday that Shanghai GM, a joint venture between General Motors Co and SAIC Motor Corp, had been contacted by China's anti-monopoly enforcer amid an industry investigation that has seen at least seven foreign carmakers cut prices.

GM has actively responded to the National Development and Reform Commission's (NDRC) requests and cooperated with the NDRC's investigation and research since 2012, the yicai.com report said, citing a GM statement e-mailed to Bloomberg.

GM also said in the statement that Shanghai GM's models are priced at a reasonable level, with almost no markups, and for its Buick, Chevrolet and Cadillac vehicles, the average amount of replacing all vehicle parts compared to the price of a new vehicle is close to 300 percent, in line with the level found on the US and European markets, the report said.

Shanghai GM posted a similar statement on its website on Monday.

"The statement mainly clarifies the company's stand," the company's source told yicai.com, noting the NDRC's investigation of carmakers is more like checking on the industry rather than investigating a particular case.

The reports come at a time when China's antitrust regulators have launched extensive probes of industries such as automobile and IT for monopolistic practices. The NDRC, the country's top economic planner which also oversees pricing, announced on August 6 that it will punish Audi and Chrysler as well as 12 Japanese car-part makers for anti-competitive practices.

FAW-Volkswagen Automotive Co's Audi unit will be fined up to 1.8 billion yuan ($292.29 million) for monopolistic practices, news portal eeo.com.cn reported on Tuesday, citing an unnamed dealer of Audi.

The investigations have also raised concerns that foreign firms are being targeted.

However, a spokesman of the Ministry of Commerce (MOFCOM) said on Saturday that all companies are treated equally.

"All companies in China, no matter whether they are domestic or foreign enterprises, must be punished, and bear legal responsibilities once they have violated Chinese laws," said Shen Danyang, a MOFCOM spokesman.