Volvo wins appeal in pricing dispute
Jan 11, 2006 10:54 AM
The United States Supreme Court issued a ruling January 10 in favor of Volvo Trucks North America, Greensboro NC, in a dispute with one of its dealers regarding competitive pricing practices, according to Volvo information.
In its interpretation of the Robinson-Patman Act in the case of Volvo Trucks North America, Inc versus 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.
Volvo said 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 chief executive officer 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 Department of Justice and the Federal Trade Commission, Volvo said.
