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Volvo sues Pilkington over “price-fixing“

Auto manufacturer Volvo is reportedly suing UK glassmaker Pilkington with regards to allegations concerning price fixing.
In December 2008, the European Commission found Pilkington, Asahi, Saint-Goba…

Auto manufacturer Volvo is reportedly suing UK glassmaker Pilkington with regards to allegations concerning price fixing. In December 2008, the European Commission found Pilkington, Asahi, Saint-Gobain and Soliver, guilty of breaching competition law by conspiring to fix prices and allocate markets for car glass products between 1998 and 2003. Fines of almost EUR 1.4 billion were imposed on the cartel and, according to the competition commissioner, Neelie Kroes, the companies“ behaviour was “unethical and wholly illegal”. She added that the cartel had “cheated the car industry and car buyers for five years in a market worth EUR 2 billion in the last year of the cartel.” Volvo issued an action in the High Court in London in early July claiming damages from the illegally inflated prices charged for car glass during the period of the cartel. A partner at Hausfeld, the law firm acting for Volvo, said: “The car glass cartel was fined at record levels by the Commission and caused substantial damage to our client Volvo and others in the struggling car industry. Volvo has therefore instructed us to recover the significant financial losses it suffered due to these inflated prices over a period of five years and hopes that Pilkington will take a responsible and commercial view in recognizing its liability to Volvo.” Pilkington“s spokesman said: “Pilkington has not yet had a chance to examine the relevant papers. It is therefore not appropriate for us to make any comment at this stage.” Pilkington, which is being represented by Herbert Smith, produces glass for windscreens, side and rear windows and sunroofs. Volvo“s case is the first to be launched against the cartel by an auto maker. In Germany, however, UK-Coburg is said to be preparing to take action against the companies.

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