Volvo, International dealers sue Detroit Diesel
DETROIT, (Feb. 10, 2005) — Ten Volvo and Navistar International truck dealers are suing Detroit Diesel Corp., alleging that the heavy-duty engine maker organized an illegal boycott and price-fixing scheme.
The suit, filed in Philadelphia on behalf of the dealers yesterday, alleges that Detroit Diesel violated federal antitrust laws by boycotting International and Volvo dealers who weren’t affiliated with DD’s parent company DaimlerChrysler. According to Associated Press, the suit says Detroit Diesel refused to allow those dealers to perform major warranty repairs on Detroit Diesel engines, even if the dealers had sold the trucks originally.
Attorneys for the plaintiffs allege Detroit Diesel was trying to force International and Volvo into long-term contracts to install Detroit Diesel engines in their new trucks.
The suit also contends Detroit Diesel and its distributors agreed to increase prices for parts sold to the affected dealers.
— from Associated Press
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