The reason for the anti-monopoly of German cars and Japanese car

Japanese car anti-monopoly focus: parts manufacturers, horizontal monopoly, eliminating competition between parts manufacturers, covering products including car generators, seat belts, airbags, steering wheels, ABS systems, starters, electronic wiring harnesses, ignition coils, Damping rubber, electronic throttle, electronic control unit (ECU), vehicle speed sensor, HID headlights, etc.

The reason for the anti-monopoly of German cars lies in the collusion between German car manufacturers and dealers to maintain high prices for parts and repairs and maintenance, and vertical monopoly, ruining the competition between dealers. The result is that a car can be sold for 12 times its total price after being dismantled and sold. Ordinary consumers only care about the cost of maintenance, but this is not the core of the plot. The most painful is the insurance company, which insures at the price of the entire vehicle and then settles the claim at 12 times the price. The insurance company feels abused and starts to shout, The anti-monopoly of the “German cars” also began.

The manufacturers involved in the “Japanese car” have two ways of “collusion with each other” to monopolize: many parts are for a specific model, and will be customized for the parts three years in advance before the vehicle manufacturer finalizes the production. Japanese The parts manufacturers have negotiated in advance, and the result is that everyone wins the bid in turn, and the bid price without competition will of course be very high, and then everyone will share the fruits. The second is those general-purpose parts, such parts do not need to be customized in advance OEMs will purchase at any time, Japanese parts manufacturers will offer a unified price (this is called price manipulation), and then share the high yield of collective cooperation (unity is strength).

The first Japanese car to investigate and begin to punish the Japan Fair Trade Commission, then the Antitrust Bureau of the US Department of Justice and the European Union Competition Commission, and later evolved into an international cooperation project, anti-monopoly law enforcement agencies from South Korea, Canada and other countries have participated. .

The anti-monopoly of the “German cars” is about the producers and dealers. It is the collusion between the producers and the dealers to maintain high prices for parts and maintenance. This is also the horizontal direction between different dealers. Collusion, the result is that a car sold for a total price of 12 times. Ordinary consumers only care about the cost of maintenance, but this is not the core of the plot. The most painful is the insurance company, which insures at the price of the entire vehicle and then settles the claim at 12 times the price. The insurance company feels abused and starts to shout, So there is the anti-monopoly of “German cars”.
This model of manufacturer-dealer exists in almost all car brands, similar to the prohibition of cross-regional sales, limit the number of dealers and so on. Some brands only give one dealer in one city, how to compete? Without the result of competition, the first is that the final consumer will spend more money, and then it is to delay technological innovation and reduce the overall efficiency of the industry … Consumers are victims, and protecting consumer interests from monopoly is one of the important purposes of antitrust. Consumers in the United States can initiate a civil lawsuit after the criminal lawsuit ends, demanding triple compensation, which is the right granted to consumers by the Clayton Act of 1914

Antitrust should be the most legal thing. There should be plaintiffs, defendants, lawyers, evidence, judges, trials, defenses and judgments. Without these, it can only be regarded as an administrative act. Going to court, the US government represented by the Department of Justice acts as the plaintiff, and the status of the defendant is completely equal. Both sides are arguing for facts, and the final judge is the judge. It is not uncommon for the US government to lose lawsuits in antitrust litigation.


Post time: May-11-2020
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