Justice Department Launches Mercedes-Benz Price-Fixing Probe

DETROIT Ed Garsten writing for the AP reported today that US Federal officials are investigating allegations of price fixing against Mercedes-Benz USA LLC and its wholly owned subsidiary Mercedes-Benz Manhattan Inc., according to a filing Friday with the U.S. Securities and Exchange Commission.

In the filing by Mercedes-Benz parent company DaimlerChrysler AG, the company says the criminal investigation by the Justice Department's antitrust division stems from a lawsuit filed in U.S. District Court in New Jersey charging price fixing among Mercedes-Benz dealers in the New York City area.

"MBUSA and MBM intend to defend themselves vigorously," the filing said.

The suit was filed on behalf of Mercedes-Benz customers from as far back as 1992, but has not yet been certified as a class action, according to Donna Boland, a spokeswoman for the automaker.

The genesis for the lawsuit was the termination of a Toms River, N.J., dealer "for performance deficiencies," Boland said. The dealer, whom Boland did not name, filed a price-fixing lawsuit which is still making its way through the courts.

"When the news came out, some lawyers said if the allegations are correct, it would follow there would be a customer component and a class-action lawsuit could be feasible," said Boland.

In May, Mercedes-Benz was served with a subpoena from the Justice Department requesting documents regarding the allegations.

"We believe we've complied with what they requested," Boland said.

She said it might be two to three months before a ruling is made on class action certification.