Canadian auto dealers launch three class actions lawsuits alleging price-fixing of auto parts

Three class action lawsuits have been launched in the Ontario Superior Court of Justice seeking more than $700 million in damages on behalf of Canadian auto dealers over alleged price fixing on parts used in the manufacture of automobiles.

The lawsuits name several major parts manufacturers associated with an international price-fixing probe including Yazaki Corporation, Denso Corporation, Furukawa Electric Co. Ltd., Sumitomo Electric Industries Ltd., Delphi Automotive LLP and Fujikura Ltd. among others.

The allegations have not been proven in court.

The parts in question are essential components found in all modern motor vehicles, including wire harnesses, fuel senders, instrument panel clusters, electronic control units and heater control panels, according to a statement posted on the website of the law firm Sotos, which is representing the lead plaintiffs.

The auto dealers in the lawsuits allege the defendants entered into backroom agreements to artificially inflate the prices of the auto parts throughout the 2000s. This led to higher overall prices for motor vehicles charged to the dealers.

“The scope of these lawsuits is enormous,” says David Sterns, one of the lawyers for the lead plaintiffs. “Because of the alleged conduct, Canadian auto dealers selling certain makes of cars and trucks may have been overcharged for every vehicle they purchased over a 10-year period.”

The proposed representative plaintiffs for the class actions are Sheridan Chevrolet Cadillac Ltd. and Pickering Auto Mall Ltd., both owned and operated for years by Jerry Gazarek, a now-retired auto dealer from Pickering, Ontario. Gazarek sold cars and trucks manufactured by GM, Suzuki, Isuzu and Saab throughout the period in question.

The representative plaintiffs brought the actions under Ontario’s Class Proceedings Act, 1992. The claims seek court certification to represent all similarly affected auto dealers in Canada.