Auto parts supplier Prevent sues Volkswagen for suppressing competition By Reuters

© Reuters. International Frankfurt Autoshow IAA in Frankfurt

© Reuters. International Frankfurt Autoshow IAA in Frankfurt

(Reuters) – Volkswagen parts supplier Prevent Group on Monday filed a lawsuit alleging the German automaker (DE:) used anticompetitive tactics to stop larger suppliers like the company from acquiring smaller rivals in the United States.

In the lawsuit filed in the U.S. District Court in Detroit, the auto parts supplier said Volkswagen extracted written agreements from suppliers not to sell themselves to Prevent Group.

Volkswagen did not immediately respond to a Reuters request for comment.

The company, which is seeking damages in excess of $750 million, said that after the diesel emissions scandal, Volkswagen used its market power to squeeze smaller suppliers and stop any acquisitions to cut costs.

Volkswagen’s lower-tier suppliers had no choice but to suffer bankruptcy or comply with Volkswagen’s “unfair terms and prices”, Prevent said in a statement.

In 2016, Volkswagen and two of its suppliers, a part of Prevent, resolved a contract dispute that had hit output at more than half of the automaker’s German plants and threatened to undermine its recovery from the diesel emissions scandal.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link


Please enter your comment!
Please enter your name here