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US: Volkswagen denies antitrust allegation by parts maker Prevent

By  |  November 19, 2019

Volkswagen on Tuesday, November 19, rejected claims it had engaged in anti-competitive behavior after parts supplier Prevent Group sued the German carmaker in the US District Court in Detroit. 

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    According to Reuters, the lawsuit claimed that Volkswagen had extracted written agreements from suppliers not to sell to Prevent, which amounted to anti-competitive behavior.

    “This suit is completely unfounded. We will vigorously contest it using all the judicial procedures available to us,” VW said in a statement, adding that Prevent had disrupted production by halting deliveries in Germany in 2016 and 2018. 

    Prevent said it a statement it was seeking damages in excess of US$750 million, alleging Volkswagen used its market power to squeeze smaller suppliers who had to comply with “unfair terms and prices” or face bankruptcy.

    Full Content: Reuters

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