Wednesday, September 22, 2010

Tyre Price Collusion Probe


The building industry is highly reliant on vehicles of various shapes and sizes and something like tyre price collusion, impacts on the bottom line.

Four large tyre manufacturers, which between them have a large slice of the market are being investigated by the Competition Commission for alleged collusive tendering, price fixing, information exchange and market allocation.

The probe was triggered by Bridgestone, SA`s largest tyre manufacturer on 6 September when it applied to the Competition Commission for leniency in exchange for providing information and co-operating with the Commission.

The other tyre manufacturers Apollo (formally Dunlop), Goodyear and Continental, if found guilty, may pay fines up to 10% of their total turnover in fines.

With respect to the tyre manufacturers, it looks like 2010 will not be remembered as a particularly Goodyear. :)

Pieter Rautenbach
CONSULT YOUR ASSOCIATION.
WE ARE HERE TO HELP YOU !

No comments: