The auto parts industry is complex – with each automobile containing roughly 30,000 parts manufactured around the globe. Auto parts can be as small as a bearing to as large as a radiator, and all are essential to the safe operation of a vehicle.
The auto parts litigation was a collection of 45 class actions – each relating to the alleged price fixing of a different auto part. Price fixing occurs where competitors agree to increase prices, restrict supply, and/or allocate markets. Price fixing is unlawful under the Canadian Competition Act. The auto parts class actions, led by Siskinds LLP, allege that the defendants conspired to fix the results of “requests for quotation” (RFQs) for auto parts being installed in new automobiles – agreeing on who would win the RFQ and at what price.
The first auto parts class action was commenced in 2012 relating to wire harnesses – a collection of wires and cables that connect various electrical and electronic components in an automobile. Other parts included: occupant safety systems, radiators, alternators, and brake hoses. The last case – braking systems – was commenced in 2018.
Many defendants were named in multiple class actions. For example, Denso was named in 25 actions.
The price fixing class actions against auto parts manufacturers allege that purchasers of new automobiles in Canada paid too much for their vehicles as a result of the conspiracy. The targeted vehicle brands varied from case to case, and included some of the world’s largest auto manufacturers, including Honda, Toyota, GM, Ford, and BMW. The auto manufacturers were not implicated in the alleged misconduct. No wrongdoing was alleged against them.
Auto Parts Manufacturers Conspired to Fix Prices
The auto parts class action stem from criminal investigations around the globe. Companies pleaded or were found guilty of price fixing in 11 countries. Many of the companies were found guilty of many parts (i.e. Hitachi Automotive Systems Ltd. pled guilty in the United States for nine parts).
Guilty Pleas of Auto Parts Manufacturers
Below is a chart summarizing the number of guilty pleas and fines imposed in Canada and the United States:
| Country | Number of Companies with a Guilty Plea | Total Quantum of Fines Imposed |
| Canada | 12 | CDN$85.93 million |
| United States | 47 | USD$2.935 billion |
Investigating the Auto Parts Price Fixing Conspiracy
Price fixing conspiracies typically happen in secret, and companies take steps to avoid detection (for example, by not communicating in writing or using code words). Often, conspiracies are uncovered when one company applies for “amnesty” (protection from criminal prosecution) in exchange for detailing the conspiracy. This case is no different. Various companies from around the globe applied for amnesty in respect of the relevant auto parts.
In addition to tracking the criminal investigations, Siskinds investigated the conspiracies through cooperation received from settled defendants in the ongoing litigation. Settled defendants were required to disclose any potentially unlawful conduct relating to the alleged conspiracy – including pricing and market allocation agreements with other defendants.
Siskinds also retained automotive industry experts and economic experts to aid in our understanding of the industry and/or provide opinions on certification (the motion where the court decides whether a case can properly proceed as a class action).
Pursuing Legal Accountability for Overcharging on Auto Parts
Siskinds and their co-counsel pursued the auto parts class action in a coordinated basis, selecting certain cases to advance towards contested certification. When an actively litigated case settled in full, Class Counsel selected a new case(s) to advance. Settlements were reached in auto parts cases that were actively litigated and those that were not. Generally, the progress in one action (whether through contested litigation or settlement) helped to drive results in other actions. For example, some settled defendants were named across multiple actions and required to cooperate in those actions. Information received through cooperation was used to leverage settlements from auto parts manufacturers with the next group of defendants.
At the same time, the “auto parts cases” are not just one case. They are a series of some 45 cases, each with its own differentiating factors. There are some elements in common between the cases, like the nature of the automotive industry and the basic structure of the distribution chain, but each conspiracy had its own unique factors to litigate. For example, the conspiracies varied in terms of the nature of the agreements reached. Some conspiracies related to specific RFQs; while others were broader. For example, the Bearings case included broader allegations related to passing on steel price increases. The conspiracies also varied in terms of scope – some targeting Japanese original equipment manufacturers (OEMs) only and others targeting North American and/or European OEMs as well.
The Canadian auto parts class actions asserted claims under the Competition Act, common law conspiracy, and unjust enrichment.
Why Tackling Price Fixing in the Auto Parts Industry Matters
Price fixing conspiracies are harmful to the Canadian marketplace, causing businesses and consumers to pay too much for goods and services. Siskinds seeks to right this wrong by requiring auto parts conspirators to compensate Canadian businesses and consumers for the amount that they overpaid for the affected vehicles.
Final Results of the Auto Parts Price Fixing Lawsuit
Siskinds and their co-counsel have reached settlements with 72 groups of defendants, totalling $186 million. The class action has now resolved against all defendants.
There have been two rounds of distribution to affected class members, with a total of 441,504 approved claims. Payments for the second round of distribution will be made in August 2025. The third and final round of distribution will commence later in 2025.
Register for Updates on the Auto Parts Class Action Today
Purchasers of new automotive vehicles in Canada should register online on the Auto Parts Class Action Lawsuit page to receive updates about the upcoming third and final distribution of settlement funds.