The U.S. Supreme Court has issued a ruling in favor of Volvo Trucks North America in a dispute with one of its dealers regarding competitive pricing practices.
In its interpretation of the Robinson-Patman Act in the case of Volvo Trucks North America Inc. v. Reeder-Simco GMC Inc., the Supreme Court on Tuesday, Jan. 10 upheld and affirmed the practice of competitive pricing in the heavy-duty truck industry. The justices voted 7-2 in favor of Volvo. The case was initiated by a dealer who argued against Volvo Trucks North America’s practice of evaluating specific potential truck sale transactions to meet specific competitive circumstances.
“Competitive pricing fosters competition by giving each seller the opportunity to respond to specific situations by offering lower prices to dealers in order to secure sales to end customers,” says Peter Karlsten, president and chief executive officer of Volvo Trucks North America. “The Court’s opinion is a clear statement of the validity, fairness and legality of pricing practices used throughout the heavy-duty truck industry, and in many other industries that rely on competitive, commercial sales policies. These practices create and foster competition that leads to lower prices not just for our customers, but for consumers of many other commercial goods.”
Volvo’s position in the case was supported by the U.S. Department of Justice and the Federal Trade Commission.