Political Risk Latin America Blog @PolRiskLatam

Brazil to Probe VW, Fiat, Ford on Auto-Parts Policies

Posted in News and Articles, Political Risk by politicalrisklatam on December 16, 2010

by Arnaldo Galvao and Fabiola Moura for Bloomberg Business Week, December 15th, 2010.

Brazil’s antitrust agency ordered an investigation into automakers Volkswagen AG, Fiat SpA and Ford Motor Co. to determine whether their policies toward auto-parts providers are abusive.

The agency, known as Cade, wants to determine if the automakers are “abusing their economic power and illegally exercising their property rights on the auto parts,” Cade said today in Brasilia.

The investigation was requested by Brazil’s federal association of auto-parts makers, known as Anfape, which claims the automakers, based on their intellectual property rights, are using lawsuits and other means to hinder competition from independent partsmakers.

The automakers’ rights are supported by Brazil’s law on patents and intellectual property, and confirmed by multiple judicial decisions, Fiat and Ford lawyers said during Cade’s session today in Brasilia. Volkswagen’s lawyer made no comments. (continue reading… )

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