The US Supreme Court and Volvo?
Many of you may not realize this but Volvo, along with its car division, is one of the largest Heavy-Duty Truck suppliers in the US. You may have seen many "Tractor-Trailer" trucks carrying the Volvo badge and they are pretty prolific on the roads and highways. Apparently they are so prolific that a dealership sued Volvo NA over their competitive pricing practices.
After much deliberation the Justices voted in favor of Volvo 7-2 and Volvo also gained the support of the US Department of Justice as well as the Federal Trade Commission. The broad implications of such a ruling have impacts on every aspect of life in terms of pricing goods and services in a competitive manner to breed competition (which sounds good to me!). But also, should Volvo NA had been found guilty, the loss or restriction of a major supplier of Heavy-Duty Trucks in the US market would have put an unnessecary strain on the transportation infrastructure which is already going full bore to meet the demands of consumers. Below is the Press Release from Volvo.
Press Release-
U S Supreme Court supports Volvo Trucks North America in antitrust case
The United States Supreme Court yesterday issued a ruling in favor of Volvo Trucks North America in a dispute with one of its dealers regarding competitive pricing practices.
In its interpretation of the Robinson-Patman Act in the case of Volvo Trucks North America, Inc. v. Reeder-Simco GMC, Inc., the Court upheld and affirmed the practice of competitive pricing in the heavy-duty truck industry. The justices voted 7-2 in favor of Volvo. The case was initiated by a dealer who argued against Volvo Trucks North America's practice of evaluating specific potential truck sale transactions to meet specific competitive circumstances.
"Competitive pricing fosters competition by giving each seller the opportunity to respond to specific situations by offering lower prices to dealers in order to secure sales to end customers," said Peter Karlsten, president and CEO of Volvo Trucks North America. "The Court's opinion is a clear statement of the validity, fairness, and legality of pricing practices used throughout the heavy-duty truck industry, and in many other industries that rely on competitive, commercial sales policies. These practices create and foster competition that leads to lower prices not just for our customers, but for consumers of many other commercial goods."
Volvo's position in the case, which has broad implications beyond the heavy-duty truck industry, was supported by the U S Department of Justice and the U S Federal Trade Commission.
After much deliberation the Justices voted in favor of Volvo 7-2 and Volvo also gained the support of the US Department of Justice as well as the Federal Trade Commission. The broad implications of such a ruling have impacts on every aspect of life in terms of pricing goods and services in a competitive manner to breed competition (which sounds good to me!). But also, should Volvo NA had been found guilty, the loss or restriction of a major supplier of Heavy-Duty Trucks in the US market would have put an unnessecary strain on the transportation infrastructure which is already going full bore to meet the demands of consumers. Below is the Press Release from Volvo.
Press Release-
U S Supreme Court supports Volvo Trucks North America in antitrust case
The United States Supreme Court yesterday issued a ruling in favor of Volvo Trucks North America in a dispute with one of its dealers regarding competitive pricing practices.
In its interpretation of the Robinson-Patman Act in the case of Volvo Trucks North America, Inc. v. Reeder-Simco GMC, Inc., the Court upheld and affirmed the practice of competitive pricing in the heavy-duty truck industry. The justices voted 7-2 in favor of Volvo. The case was initiated by a dealer who argued against Volvo Trucks North America's practice of evaluating specific potential truck sale transactions to meet specific competitive circumstances.
"Competitive pricing fosters competition by giving each seller the opportunity to respond to specific situations by offering lower prices to dealers in order to secure sales to end customers," said Peter Karlsten, president and CEO of Volvo Trucks North America. "The Court's opinion is a clear statement of the validity, fairness, and legality of pricing practices used throughout the heavy-duty truck industry, and in many other industries that rely on competitive, commercial sales policies. These practices create and foster competition that leads to lower prices not just for our customers, but for consumers of many other commercial goods."
Volvo's position in the case, which has broad implications beyond the heavy-duty truck industry, was supported by the U S Department of Justice and the U S Federal Trade Commission.
posted by John-Scott at 6:55 AM
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