Mike's Car Info

  The Hidden Costs Driving Up Car Prices Car prices in the United States have risen dramatically over the past two decades, and while inflation and new technology explain part of the increase, documented legal cases reveal a deeper problem: collusion and structural inefficiencies in the automotive industry. From supplier price-fixing to restrictive dealer laws, these factors have imposed measurable costs on consumers. 1. Supplier Cartels and Price Fixing Multiple investigations by the U.S. Department of Justice (DOJ), the Federal Bureau of Investigation (FBI), and the European Commission have uncovered widespread price-fixing among auto parts suppliers. These cartels directly affected the cost of components that go into every car. Wire Harnesses : In 2013, several Japanese suppliers, including Yazaki and Denso, pleaded guilty to price-fixing electrical systems that connect a vehicle’s components. Fines exceeded $740 million in the U.S. alone . Airbags : Takata and other suppli...