Spanish Auto Industry Price-Fixing Probe Continues

MADRID – The government steps up its probe of price-fixing within Spain’s auto industry.

The National Competition Commission is investigating allegations that Audi, Chrysler, Fiat, Ford, General Motors and its Chevrolet and Opel subsidiaries, Honda, Hyundai, Kia, PSA Peugeot Citroen, Nissan, Renault, SEAT and Toyota improperly exchanged information on business strategies and commercially sensitive data to set prices and service contracts.

The commission says the first phase of its investigation, held in June and July, found direct evidence of activity prohibited under free-competition rules. The second phase involves disciplinary proceedings that could result in fines of up to 10% of the guilty party’s 2012 profits.

Disciplinary proceedings also are pending against Audi, Hyundai, Land Rover, Nissan, Opel, SEAT and Toyota dealers over separate allegations of price fixing, including aftermarket activity.

Additionally, the probe extends to FACONAUTO, the nationwide federation of auto-dealer associations; Volkswagen, Audi, SEAT and Opel dealership associations; more than 50 individual dealerships of VW and its Audi and SEAT brands; 11 of Hyundai, eight of Opel, seven of Nissan Iberia and six of Land Rover; and industry consultancies Servicalidad, Snap-On Business Solutions, Urban Science and Howarth Auditors Spain.

Targets of the investigation deny wrongdoing.

“I only want to underline that the initiation of the disciplinary proceedings does not imply we are guilty, and that the Spanish market is the most competitive of Europe, with the lowest prices and the biggest number of auto makers operating in it,” Toyota Spain President Jacques Pierarts says in a statement.

“We remain calm and we are sure the proceedings now initiated are going to ratify the Spanish market is the most competitive in Europe,” FACONAUTO General Secretary Blas Vives says.

This is not the first time FACONAUTO has been accused of price fixing.

In 1991, then-President Jose I. Pozas publicly proposed a 50% increase in auto dealers’ service fees to compensate for falling margins on new-car sales. FACONAUTO was fined  €427,000 ($570,000) and Pozas was fined €600 ($800), but after several appeals the Competition Commission canceled the penalties in 2010.