Autoliv to pay R150m penalty

One of the world’s largest makers of air bags, seat belts and steering wheels, Autoliv Southern Africa, has agreed to pay an administrative penalty of almost R150m after admitting to the Competition Commission that it contravened the Competition Act.

One of the world’s largest makers of air bags, seat belts and steering wheels, Autoliv Southern Africa, has agreed to pay an administrative penalty of almost R150m after admitting to the Competition Commission that it had contravened the Competition Act.

The penalty is among the highest imposed by the commission so far in 2017.

The Stockholm-based multinational is listed on the New York and Stockholm stock exchanges and employs 70,000 people worldwide. It entered SA through a joint venture in 1991.

Autoliv Southern Africa concluded the settlement agreement with the commission for its involvement in prohibited practices such as price fixing, market division and collusive tendering with its competitors, namely large US multinational TRW and three Japanese automotive component multinationals Takata Group, Toyoda Gosei and Tokai Rika.

According to the commission, these collusive practices date back to 2001.

The settlement follows a commission probe into collusive conduct by these manufacturers for allegedly fixing prices, dividing markets and colluding on tenders issued by Volkswagen for its Polo, Golf, Up and Eos vehicles as well as for Passat, Porsche and BMW vehicles.

Commission communications head Sipho Ngwema said the investigation into the other companies that had allegedly acted in collusion with Autoliv was continuing.

Ngwema said that the consent agreement signed by Autoliv was not a leniency application, which applied when a company voluntarily provided the commission with information about anticompetitive practices in return for lenient treatment. The fine paid by Autoliv would be channelled into the National Revenue Fund.

Ngwema said the commission initiated its investigation into the alleged collusion in 2012 and had accumulated a lot of evidence in the process.