South African affiliates of seven world automakers, including BMW and Nissan Motor, violated the fair competition law by colluding with dealers to maintain the minimum prices of their new cars, the nation’s antitrust watchdog said, according to Kyodo News.
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The accused – also including local units of Subaru-maker Fuji Heavy Industries, General Motors, Volkswagen, PSA Peugeot Citroen and DaimlerChrysler – have denied the allegation, according to a South African Press Association report, citing comments by a senior industry official, Kyodo said.
The Competition Commission is expected to send the case shortly to the Competition Tribunal which can impose fines if the affiliates are found guilty.
According to the commission, the companies colluded with, or forced, dealers to fix prices for new vehicles. They also created a system in which dealers of different brands of cars maintained minimum prices and provided similar services in sales.
Kyodo News noted that, in April last year, the commission launched a probe on anti-competitive practices in the nation’s auto industry. One month later, Toyota’s local unit admitted it had forced dealers to maintain minimum prices, and paid a fine of 12 million rand, or about $1.76 million at the present exchange rate.
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