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Detroit Diesel accused of price-fixing

International and Volvo Truck dealers file lawsuits against Detroit Diesel

Law firm Duane Morris LLP has announced its filing of two class action lawsuits on behalf of hundreds of International and Volvo Truck dealers against Detroit Diesel Corp. and seventeen of its distributors. The lawsuits allege that Detroit Diesel violated federal antitrust law by organizing a group boycott and price fixing scheme with its independent distributors.

According to complaints filed in the lawsuits, DDC boycotted International and Volvo Truck dealers not affiliated with Detroit Diesel’s parent company, DaimlerChrysler AG, by terminating those dealers’ rights to perform major warranty repairs on Detroit Diesel engines in trucks they had sold. The lawsuit alleges the distributors also coordinated a price hike on Detroit Diesel parts for these dealers.

The lawsuits claim these actions initiated by DDC and its distributors were intended to restrict the ability of International and Volvo Truck dealers to compete for engine repairs and truck sales and to force International and Volvo Truck dealers to enter into long-term supply contracts with DDC to install Detroit Diesel engines in those manufacturers’ new trucks.

DDC was contacted but a spokesperson said it does not comment on pending litigation.

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