China says it will punish global auto makers Audi and Chrysler after an ongoing investigation showed the companies allegedly violated anti-trust laws.
Over the past few days, car companies have rushed to cut prices. On Sunday, Daimler announced it would slash prices on more than 10,000 spare parts for its Mercedes-Benz cars in China. That move comes a week after Audi decided to lower its spare part prices.
And Chrysler said it would slash prices for parts and on some of its Jeep models. Chrysler says it wants to boost its Jeep sales in China with plans to make them there by the end of next year.
Industry experts say imported luxury cars in China cost, on average, two and a half to three times their price in the United States. Foreign car-makers argue the price difference is due to higher import duties and other taxes in China. So investigations like this are welcomed by most Chinese luxury car buyers who want to see even more price cuts.
For more on the issue, CCTV America spoke to Nicholas Economides, Professor of Economics at New York University.