Stellantis’ $854m UK Airbag and Seatbelt Cartel Trial Begins

Stellantis’ 771 million euro ($854 million) trial in London against two safety equipment makers began on Tuesday, with the European carmaker arguing that long-standing cartels led to it being overcharged for about a decade.

The automaker, which was formed through the 2021 merger of Fiat Chrysler Automobiles and PSA Group, is suing Autoliv and ZF/TRW for allegedly charging higher prices for seat belts, airbags and steering wheels.

Sweden’s Autoliv and TRW – which were bought by German rival ZF Friedrichshafen in 2014 – were found by the European Commission to have participated in cartels, linked to products sold to Japanese and European carmakers.

The two companies were fined €368.3 million in 2019 over cartels involving products supplied to European automakers, while a Japanese unit of Autoliv was among the companies fined for cartels involving supplies to Japanese automakers.

Stellantis argues that the cartels’ practices were much broader than the European Commission’s limited findings.

His lawyer, Colin West, said in court documents that it was “inherently unlikely” that the Autoliv and ZF/TRW cartels would affect some carmakers but not the Stellantis brands.

However, Autoliv and ZF/TRW claim that the European Commission investigated the sector for several years – with the cooperation of the companies – and did not find that Stellantis was targeted by the cartel.

Lawyers for the companies said there was no collusion beyond that found by the European Commission and, if there was, any overcharging was passed on by Stellantis to customers.

The case at the Competition Appeal Tribunal is expected to last five weeks.

(Reporting by Tobin; Editing by Jan Harvey)