Airbag and seatbelt maker fined R150 million for collusion

One of the world’s largest manufacturers of airbags, seatbelts and steering wheels has agreed to pay an administrative penalty of almost R150 million following its admission of having contravened the Competition Act.

Autoliv, which is headquartered in Stockholm, Sweden has concluded a settlement agreement with the Commission for its involvement in prohibited practices like price fixing, market division and collusive tendering with its competitors, namely, TRW, Takata Group, Toyoda Gosei, and Tokai Rika.

The settlement follows a Commission investigation into collusive conduct against manufacturers of airbags, seatbelts and steering wheels (including Autoliv and its competitors) for allegedly fixing prices, dividing markets and colluding on tenders issued by car manufacturers such as BMW Group and VW Group for the manufacture and supply of airbags, seatbelts and steering wheels.

The conduct affected tenders issued for the following vehicles: VW Polo, MQB platform (VW Golf), Audi A1, A3, A6, A7, A8, Q3, VW 120Up, VW Eos convertible, Passat, Porsche Cajun/Macan, F15/F16 platform (BMW X5/X6), PL6 platform (5,6 and 7 series) and M Sport.

Autoliv has agreed to pay an administrative penalty of R149 960 540 (one hundred and forty nine million nine hundred and sixty thousand, and five hundred and forty rand).

The Commission has filed the settlement agreement with the Tribunal for confirmation as an order. The investigation against the other firms continues.

In August 2012, the Commissioner initiated a complaint against Autoliv and its competitors for allegedly colluding on tenders issued by automotive manufacturers such as BMW and VW to manufacture and supply of Occupant Safety Systems (seatbelts, airbags and steering wheels) in contravention of section 4 (1)(b) of the Competition Act.


Read: Government increases vehicle licence fees

Must Read

Partner Content

Show comments

Trending Now

Follow Us

Airbag and seatbelt maker fined R150 million for collusion