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Aug
2013

Where does the additional profit go?

In 2005, the “Measures for the Administration of Automobile Brand Sales Implementation (MAABS)” was published that allowed the car brand to set up a Chinese distribution company that controls the only import rights, and creates an opportunity for the brand to dictate prices and make huge profits. The situation is now under investigation by the National Development and Reform Commission together with the Ministry of Commerce, and the National Administration of Industry and Commerce that aims to amend the ”MAABS”. The investigation into what in effect is a monopoly that gives the car brand an additional 462K RMB profit on our…

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