US Files Collective Antitrust Lawsuit, Ford Canada Revisited Old Case

Ford Motor Company of Canada has also been faced with an aggressive class-action lawsuit, as California of the United States has accused it of violating the antitrust regulations that restrict the export of low-priced Canadian-made vehicles into the United States.

The California Court of Appeal unanimously ruled that the plaintiff consumers have provided sufficient evidence. This lawsuit originated from the efforts of the automotive industry to reduce the number of vehicles produced around 1990 and 2000 that entered the U.S. auto market through the "gray market".

Plaintiff counsel Michael Christian stated that the lawsuit seeks to compensate California consumers who purchased new vehicles between 2000 and 2003 for the price difference they overpaid.

However, the court refused to reinstate the charges against Ford. Charges against U.S. and Canadian automakers, the Canadian Automobile Dealers Association and the National Automobile Dealers Association have been adjudicated, settled, or left unresolved due to bankruptcy.

The lawsuit alleges that imported Canadian vehicles are priced lower than similar American-made vehicles. A 2000 F350 Crewcab 4x4 DRW Lariat imported from Canada could be $8,265 cheaper than the U.S. version.

The lawsuit accuses automakers of multiple violations, including blacklisting export dealers, amending franchise agreements to prohibit export sales, imposing vehicle allocation restrictions, forcibly terminating allocations, invalidating authorizations, and refusing to provide recall information to export dealers.

The appellate panel stated that the plaintiffs have provided significant evidence, including phone calls and private meeting records between the manufacturers and the general counsel of Ford Canada.

Matt Drennan-Scace, a spokesperson for Ford Canada, stated that the company would not comment on ongoing litigation.