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CADE suspects cartelization in automotive parts sector

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The Administrative Council for Economic Defense (CADE) initiated an investigation (Dec.4) to investigate the possible existence of a cartel in the markets for the replacement of automotive parts and the sale of original parts.

cPricing practices would be violating the rules of free competition in the sale of engine pistons, bearings, liners, pins, connecting rods, door rings, sealing rings and gaskets and engine piston rings.

Three companies are under investigation in the case: Federal Mogul Sistemas Automotivos Ltda; Mahle Metal Leve SA and KSPG Automotive Brazil.

According to a note issued by CADE, there is evidence that the manufacturers agreed prices and sales terms on sales, combining percentages and readjustment dates. With respect to the original parts, the companies are accused of dividing customers and having combined prices and commercial conditions.