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China investigates General Motors on monopoly issues

“Shanghai GM’s major models produced in China are priced almost at the same level with the similar models sold in overseas markets,” the company said in a statement

General Motors is being investigated by China’s government on questions regarding monopoly and pricing.

Specifically, regulators are looking at Shanghai GM, which is a joint venture between GM and Shanghai Automotive Industries Corp., and which sells Buicks, Cadillacs and Chevrolets, according to a report from the Motley Fool.

On the other end of the market, SGMW, a SAIC-GM-Wuling joint venture with SAIC Motor and Lizhou Wuling Motors, GM sells $5,000-$10,000 cars, which get up to 40 miles per gallon. SGMW sold 883,724 vehicles in the first half of the year.

In addition, the GM sales volume in China appears to be resilient to the 29 million GM recalls in 2014 due to safety concerns.

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Ed Silverstein

Ed Silverstein is a veteran writer and editor for magazines, websites and newspapers. A graduate of Harvard's Kennedy School of Government, he has won several...

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