Manufacturing News

Taiwanese aftermarket suppliers remain targets of U.S. price-fixing suit

A federal judge in Wisconsin has refused to dismiss an antitrust lawsuit accusing Taiwanese companies and their U.S. affiliates that make aftermarket parts of conspiring to fix prices.

The class-action suit by U.S. companies Fond du Lac Bumper Exchange Inc. and Vehimax International accuses the defendants of reducing the availability of sheet-metal components.

It contends that such practices forced customers to pay higher prices for hoods, doors, fenders, floor panels, trunk lids, tailgates, roof panels and reinforcement parts.

The plaintiffs seek an injunction and triple damages. The plaintiffs' lawyer, Vincent Esades of Minneapolis, said there is no estimate on the potential amount of damages.

The manufacturers deny the allegations, said their defense counsel, Robert Kalec of suburban Detroit.

Defendants Taiwan Kai Yih Industrial Co. Inc., TYG Products, Auto Parts Industrial Ltd., Cornerstone Auto Parts and Gordon Auto Body Parts asked U.S. District Judge Lynn Adelman to dismiss the case.

They argued that the Sherman Act doesn't apply because any anti-competitive conduct occurred in Taiwan where the plaintiffs bought the parts, and thus "involved purely foreign commerce" outside the antitrust law.

But Adelman ruled that the Sherman Act covers such activities because they affect "import commerce."

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