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The Competition Commission has announced a probe into alleged collusion in the automotive component industry.
The Commission said today that the investigation is based on allegations of price fixing, market division, and collusive tendering in the market for the manufacture and supply of automotive components supplied to automotive manufacturers.
See the full statement below:
The Competition Commission has launched investigations into price fixing, market division and collusive tendering in the market for the manufacture and supply of automotive components
supplied to original equipment manufacturers (OEMs) such as Toyota Motor Corporation, Daihatsu Motor Company, Nissan Motor Company, Isuzu Motor Limited, Fuji Heavy Industries, Honda Motor Corporation, Suzuki Motor Corporation, General Motors Corporation, Hyundai Motor Company, Yamaha Motor Corporation, Volvo Car Corporation, Mazda Motor Corporation, Mitsubishi Motor
Corporations and Ford Motor Corporation.
The investigation arises from information received by the Commission that automotive component manufacturers colluded when bidding for tenders to supply automotive components to the OEMs.
The investigation is launched against automotive components manufacturers such as Denso Corporation, Maruyasu Industrial Company Limited, Hitachi Company Limited, Mitsubishi Electric Corporation,Tokai Rika Company Limited, NGK Spark Plug Company Limited, Mikuni Corporation, Aisin Industries Company Limited, Panasonic Corporation, Futuba Corporation
and Fijistu-Ten Limited.
The information in the possession of the Commission suggests that from 2000 to date, 82 automotive component manufacturers have colluded in respect of 121 automotive components.
The 121 automotive components affected by the collusion include, but not limited to, Inverters, Electric Power Steering ECU, Electric Power Steering and Motors, Glow Plugs, Electric Power Steering systems, Rear Sunshades, Pressure Regulator, Pulsation Damper, Purge Control Valves, Accelerator Pedal Modules, Power Management Controller, Evaporative Fuel Canister systems,
Knock Sensors, Spark Plugs and Clearance Sonar systems.
“The Commission’s investigation into this pervasive collusive conduct joins similar investigations launched in other jurisdictions internationally. The Commission will prioritise the investigation of cases that involve automotive components that are in vehicles assembled in and supplied to the South African market”, said the Competition Commissioner, Tembinkosi Bonakele.
