Audi, Chrysler to Be Punished Over Monopoly Practices in China

SHANGHAI--China's top economic planning agency said Wednesday it will punish Audi AG and Chrysler after an investigation found the two luxury car makers had pursued monopoly practices.

At a briefing in Beijing, Li Pumin, secretary-general of the National Development and Reform Commission also confirmed a recent investigation into Daimler AG's Mercedes-Benz.

Mr. Li said investigations by local authorities into Chrysler and Audi were close to an end. "The two companies do have monopolistic practices. They will be punished soon."

Also, he said the NDRC has finished antitrust investigations into 12 Japanese companies, saying they are pursuing price monopolies in auto parts, but declined to name the companies.

Mr. Li's remarks come after efforts by luxury car makers, including Audi, Chrysler and Mercedes, to appease Chinese regulators with price cuts on spare parts in recent days. All the three car companies have said that their price cuts are in response to an investigation by the NDRC.

Foreign luxury-auto makers have been facing mounting pressure in what has been a lucrative market. China's state media have accused auto makers of earning exorbitant profits in China by dominating the market, overcharging consumers and controlling the sale of auto parts. In recent weeks, Chinese regulators have increased scrutiny on the industry, people familiar with the matter have said.

In response to a question about the possibility of fines late Tuesday, a Chrysler spokeswoman said: "Chrysler Group China Sales has been in full cooperation with NDRC investigation. It is not appropriate for us to discuss any details before NDRC issues official conclusion." Officials at Audi weren't immediately available for comment Wednesday.

Rose Yu, Colum Murphy and Grace Zhu contributed to this article.

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