Spanish Auto Dealers Focus of Antitrust Investigation

MADRID – Spanish auto dealers and associations are the targets of a government price-fixing investigation. Industry officials deny any wrongdoing.

Inspectors from the government’s National Competition Commission visited the offices of several auto dealers and distributors and their representative associations earlier this month, looking for information and documents regarding possible fixing of prices for cars and their maintenance.

Violations of the antitrust law are punishable by penalties of up to 10% on profits earned during the previous fiscal year.

Investigators who visited Faconauto, the federation of Spanish auto dealer associations, did not remove any documents, General Secretary Blas Vives tells the EFE and Europa Press news agencies. Nothing is out of order, he says, adding, “We are calm.”

Vives confirms the investigation involves prices and the Spanish inflation index but offers no further details.

Spain’s vehicle market is one of the most competitive in Europe, even within individual auto makers and among their brands, Vives says.

“The average effective price of a car was €20,730 ($27,500) in Spain during 2008, with an average 2% discount,” he says. “In 2012 that average effective price dropped to €20,144 ($26,700), with a 14.6% discount. And in the five first months of 2013 it has fallen to €19,243 ($25,500), a 4.5% (decline from) the figure of 2012.”

Juan A. Sanchez, president of GANVAM, the largest Spanish association of auto dealers, vendors and retailers, says the group has not been contacted by government inspectors but such visits are normal. He tells Europa Press he learned of the probe through the media.

Sanchez says GANVAM has not acted improperly. Like Vives, he says the Spanish car market not only is highly competitive but also continues suffering from the European recession that has slashed sales and led to the loss of about 40,000 industry jobs.