China Accuses Mercedes-Benz Of Price Hiking

Whatever the rest of the world may think, the biggest car market is in China. Every manufacturer is trying to maximise their profits there, but it would seem that some of them are actually less than scrupulous about HOW they make all that money.

Mercedes-Benz just got caught in a price hiking scheme. Chinese authorities raided some dealerships and a regional office in the Shanghai region. The documents they found there allowed them to prove that the German manufacturer was charging outrageous prices for spare parts and services.

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Mercedes-Benz has announced they are working with the authorities.

They are not the first manufacturer to have received a visit from the Chinese authorities. Audi was found guilty of a similar crime last week. In accordance to the laws of the country, an automaker can face fines of up to 10% of their last year’s revenue. Chrysler is also under investigation for the same crimes.

In response to these crackdowns on their activities, German manufacturers will lower the price of their services: Mercedes announced a 15% drop; BMW said they will lower their pricing by 20%, and Audi will announce an exact number shortly.