File photo/Zhang Jian (NBD)

June 6 (NBD) -- China's top market watchdog announced Wednesday that it has imposed a fine of 162.8 million yuan (23.6 million U.S. dollars) on automaker Changan Ford for implementing vertical monopoly agreements.

Changan Ford, which is owned 50:50 by Ford and Changan Automobile, has been restricting the minimum vehicle resale prices for downstream dealers in Chongqing municipality since 2013, violating China's anti-monopoly law, the State Administration for Market Regulation said in a statement.

Reached by National Business Daily (NBD), Cao Zhenyu, executive vice president of National Distribution Services Division of Changan Ford, said that the company totally accepted the decision by the administration.

"Changan Ford is taking corrective action in accordance with relevant laws and regulations and making corresponding arrangements as per the state's requirements pertaining to horizontal and vertical monopoly," said Cao to NBD.

The anti-monopoly fine came at a time when Changan Ford faces sliding sales. It's noticed that the automaker sold only 36,800 cars in the first quarter of 2019, plummeting by 71.79 percent year over year. Furthermore, sales of the joint venture fell 54 percent to nearly 378,000 units last year.

In response, Cao told NBD that Ford remains a very competitive marque in the world and has a strong consumer base, adding that the sale decline resulted from the Ford brand being significantly undervalued.

"Ford attaches great importance to the Chinese market. With the '330' Product Plan, Ford is to launch more than 30 new Ford and Lincoln vehicles tailored to Chinese consumers in the next three years, aiming at reinstating Ford's position in the world's biggest auto market," said Cao.

According to Cao, Changan Ford is pressing ahead with a litany of initiatives, in a bid to improve sales channel, branding and marketing as well as customer experience. "The difficult situation is only temporary."

With regard to achievements of ongoing adjustments, Cao told NBD that Changan Ford sold approximately 22,000 cars this May, not a lot but much higher than the prior month's 14,800 units, and the company is seeing an increase in market share.

Changan Ford is slated to bring the new Focus Active and ST-line models to the market in the second half of 2019. Cao expected sales to rebound with the launch of new cars.

Email: gaohan@nbd.com.cn