A report in the Daily Telegraph newspaper says that UK automotive trade body SMMT has decided to put an end to the exchange and discussion of company identifiable UK market forecasts between vehicle manufacturers amid fears that the practice may be contravening domestic or EU competition rules.
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The report said that there was a growing sense of unease over the exchange of market forecast estimates for the year ahead between manufacturers – a practice facilitated by SMMT over the past twenty years.
Some have questioned whether vehicle manufacturers have historically been able to manipulate the market in some form of collusive way.
If an investigation into the SMMT’s forecast data exchange concluded that it amounted to an anti-competitive practice that had helped keep vehicle prices high, the SMMT could, theoretically, face a large fine, an SMMT spokesman acknowledged.
The SMMT now appears to be adopting a more cautious line while there is any degree of uncertainty over the legal position. Named forecast data will no longer be exchanged.
However, the Telegraph report suggested that the quarterly forecasting meetings between manufacturers will still go ahead, though with participants being presented with averages rather than figures with company names attached.
Citroën market analyst Jean François, a participant at the SMMT forecast meetings, told the newspaper that he had found the quarterly forecast meetings and the exchange of each other’s sales estimates ‘useful and informative’.
