Shares of Ford Motor Co. (NYSE: F) were down by 1.3% in mid-day trade on Wednesday as reports emerged of its joint venture in China being hit with a fine by Chinese regulators for antitrust violations.
Changan Ford Automobile Co. was reportedly handed a fine of 162.8 million yuan ($23.6 million) by the State Administration for Market Regulation for restricting resale prices on its cars in Chongqing city. The fine amount comes to 4% of Changan Ford’s annual sales in Chongqing.
The Changan Ford joint venture was created between Ford and Chinese carmaker Changan Automobile with each partner owning 50-50 of the entity. After the US, China is the second largest market for Ford but the company has been seeing sales declines in the region.
The fine comes at a time when Ford is taking measures to drive sales growth in China and amid trade tensions between China and the US which has left several companies and investors in a state of concern.
After the US imposed a ban on Chinese telecom company Huawei Technologies, China threatened to retaliate with a blacklist on foreign firms. China is already said to be investigating FedEx Corp. (NYSE: FDX) for misrouting its parcels to the US.
Most Popular
What to look for when CVS Health (CVS) reports Q3 earnings
Healthcare company CVS Health Corporation (NYSE: CVS) is all set to report earnings next week, with Wall Street expecting a mixed outcome. The company has been facing challenges in certain
eBay (EBAY): A few factors that helped drive growth in Q3 2024
Shares of eBay Inc. (NASDAQ: EBAY) stayed green on Friday. The stock has gained 32% year-to-date. The ecommerce leader delivered revenue and earnings growth for the third quarter of 2024,
CVX Earnings: Chevron reports lower revenue and profit for Q3 2024
Energy exploration company Chevron Corporation (NYSE: CVX) on Friday announced third-quarter 2024 financial results, reporting a decline in net profit and revenues. Net income attributable to Chevron Corporation dropped to
