MOSCOW, October 18 (RIA Novosti) - Russia's Federal Anti-Monopoly Service said Wednesday it has initiated legal proceedings against the CIS division of U.S. automotive giant General Motors, and the Russian division of Japan's Nissan Motor Co. for violating competition laws.
The case centers on "agreed steps by the companies to establish a coordinated price for technical maintenance, particularly on painting works," service spokeswoman Irina Kashunina said.
The FAS said in August it received an appeal from insurance companies directing the service's attention to an agreement between official Nissan dealers setting fixed costs for the technical maintenance of their cars.
Nissan is successful on the Russian market and its sales in Russia in January-July this year increased 45.4%, year-on-year, to 36,518 vehicles. In June, the company signed a deal to build an automotive plant near St. Petersburg, Russia's second-largest city.
The company said it will invest about $200 million in car manufacturing in Russia. The first cars from the new plant will roll out in October 2008, and annual output is expected to reach 50,000 cars. Nissan said it will adapt its models for Russia.
GM also signed a contract to build a plant near St. Petersburg and intends to launch full-scale industrial production in 2008. The company already has a track record in Russia, having produced the Chevrolet-Neva off-road vehicle with the country's leading automotive company, AvtoVaz, since 2001 and has opened 48 dealerships in 24 towns and cities.
