China’s auto group retracts pledge to avoid ‘abnormal pricing’ By Reuters

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<span>© Reuters. FILE PHOTO: Cars drive on the road during the evening rush hour in Beijing, China, July 1, 2019. Picture taken July 1, 2019. REUTERS/Jason Lee/File Photo</span><br />
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<p>SHANGHAI (Reuters) – The China Association of Auto Manufacturers (CAAM), citing antitrust law, on Saturday retracted a pledge to avoid “abnormal pricing” made two days earlier by 16 automakers, including Tesla (NASDAQ:)..</p>
<p>Thursday’s CAAM-organised pledge by the companies, including Chinese electric vehicle (EV) makers Nio (NYSE:), Li Auto and Xpeng (NYSE:), had been interpreted by some as signalling a truce in a price war that has threatened industry-wide profitability.</p>
<p>But Elon Musk’s EV giant Tesla on Friday rolled out a global programme letting buyers get extra incentives through referrals from existing customers, a strategy long used by traditional automakers to boost sales.</p>
<p>In a statement on its website on Saturday, CAAM said it recognised the pricing pledge had violated China’s antitrust law and said it would delete it from a list of commitments the automakers had signed, witnessed by an official from Ministry of Industry and Information Technology.</p>
<p>CAAM said it would urge the 16 companies and other association members to strictly comply with the antitrust law and compete fairly with independent pricing. </p>
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<br /><a href="https://www.investing.com/news/stock-market-news/chinas-auto-group-retracts-pledge-to-avoid-abnormal-pricing-3121850">Source link </a></p><p>The post <a href="https://forextraderhub.com/chinas-auto-group-retracts-pledge-to-avoid-abnormal-pricing-by-reuters.html">China’s auto group retracts pledge to avoid ‘abnormal pricing’ By Reuters</a> first appeared on <a href="https://forextraderhub.com">Forex Trader Hub</a>.</p>