Collusion Among Auto Manufacturers

Car Lease1Green & Noblin, P.C. filed a class action on behalf of purchasers and lessees of new cars to recover supracompetitive prices maintained by auto manufacturers’ attempts to prevent less expensive Canadian cars from entering the U.S. market.

Cars in Canada typically cost between 20 and 35 percent less than in the U.S. For example, adjusting for differences in the exchange rate between the U.S. and Canada, Ford sold its popular 2002 Windstar LX model minivan to Canadian dealers at an invoice price of $15,373 with a suggested retail price of $16,448. Ford sold the same Windstar LX to U.S. dealers at an invoice price of $20,844 and a suggested retail price of $22,340. With the fall of trade barriers and harmonizing of environmental and safety regulations, the only differences between new cars made for sale in Canada and those made for sale in the U.S. are the speedometers and odometers, and in some instances, minor differences in daytime running lamps. Consequently, U.S. consumers should have reaped the benefits of price competition. Plaintiffs allege that to prevent that competition, auto manufacturers and dealers associations took a series of coordinated steps to block the import of Canadian manufactured cars and to discourage U.S. consumers from purchasing a new car from a Canadian dealer.

If you purchased or leased a new car in the U.S. after January 1, 2001, or if you have information that may be helpful to the prosecution of this action, please contact us by clicking here.