Report: Mercedes Guilty of Price Gouging in China

Daimler AG's Mercedes-Benz unit has been found guilty in China of overcharging for replacement parts, according to the official Xinhua news agency.

Xinhua cites an analysis by Chinese anti-monopoly investigators in Jiangsu who determined that buying the parts to create a C-Class sedan would cost 12 times as much as buying an already-assembled model.

China's National Development and Reform Commission which is investigating similar charges against Audi, BMW, Jaguar Land Rover and Toyota has not indicated what penalty it will levy against Mercedes.

Under China's 6-year-old anti-monopoly law, wrongdoers can be fined as much as 10% of the previous year's revenue generated in the affected region.