The Rip-Off Corporations

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Motorists are complaining about a lot of expensive spare parts. The price usury System has: A consulting company helped five Car manufacturers to increase their lush profits from the business by a further 2.6 billion euros.

The prices for spare parts to bring car owners in a Rage. “Usury high ten,” complains a victim on the Website “Motor-Talk”. “Yesterday my ride got sub-set of the workshop. 500 Euro for spare parts!”

The anger of Car owners has found with the ADAC long been a voice tube. For years, the car denounces mobile club exorbitant prices for the original parts. This fight seems to be hopeless: the car manufacturers take advantage of their monopoly position and can’t get seem to enough. They hired the consulting company Accenture, which helped, according to confidential documents five car companies to increase Software prices more visible car parts in the average by up to 25 percent.

With the sophisticated program called Partneo created by Accenture between 2008 and 2013, the car manufacturers of the programs for higher spare part prices, which until today billion high coated for extra profits. The display information of the French online newspaper “media part” of a court process in Paris, which has evaluated the LEVEL with partners of the media network of European Investigative Collaborations (EIC) in cooperation with Reuters and the Belgian newspaper “De Standaard”.

The secret documents prove not only that Accenture as one of the largest consultancies in the world, enabled seems to be a price fixing cartel between French automakers Renault and PSA Peugeot Citroën, which the three companies. According to the in the court procedures documents, which became Accenture, with the price of software was able to win as customers as Nissan, Chrysler and Jaguar Land Rover.

The Partneo customers were able to increase their profits to 380 Million euros per year. Overall, an extra profit of around 2.6 billion euros came out today – siphoned off customers, especially from Europe. The income range most of the price increases for individual auto parts from approximately 20 to more than 300 percent, according to confidential data.

In turn, Accenture’s Software to drive the prices high

According to the documentation, the Software increased the part prices from Renault and PSA Peugeot Citroën on average by 15 percent. The corporations earned per year is about 100 million Euro more – which Renault increased its profit in the past ten years to 800 million euros, PSA his to 675 million euros. Renault explained that these Figures differed from their own, which are confidential. PSA do not want to discuss Details of the documents.

Renault’s sister company Nissan managed according to the documents, even a price increase of 25 percent, and earned since the beginning of the business relationship with Accenture is this a total of 500 million euros more for spare parts. The US manufacturer Chrysler is 13 percent higher achieved prices and a profit increase of a total of 420 million euros. Jaguar Land Rover increased its prices according to the Accenture documents to at least nine percent, 200 million euros more. The company did not comment.

In addition, the documents show that Accenture similar price far more car climbs offered corporations. So the company tried to sell Partneo to 31, manufacturers: Volkswagen, BMW and Daimler, Fiat, Volvo and others in Europe, Toyota, Honda, Mitsubishi and Hyundai in Asia up to General Motors and Ford in the USA.

Accenture refuses to take Details. The advice tells only the revealed information, contained inaccuracies and wrong interpretations. The company on legal and contractual obligations.

BMW confirmed to be in contact with Accenture. You have, however, had no interest in and to the Software, the company is relying on its own methods. The other companies had no comment.


Price proposals for the BMW grille by Partneo

Lucrative Business

In the presentations, for car Manager, Accenture found that companies with spare parts up to 80 percent profit margin achieved in a Chart for BMW, they increased the number to even 90 percent. The parts would be of “nine to 13 percent of group sales” but “up to 50 percent of the net profit”, says Accenture. While the car companies earn on the new car business and hardly any money, long you the Service and parts business, therefore, is not in vain.

In multi-page presentations Accenture consultants showed the car companies that the prices were visible spare parts by 10 to 20 percent increase and non-visible and potential. Increases in the price of other car manufacturers, the advice for Partneo advertised. Since then, the car Manager know that your rivals will increase prices on a broad Front and you have room to run.

Documents show how strong Accenture helped to increase prices:

  • Renault asked for the gas pedal sensor on the Megane 51 euros in the production cost of 14,60 Euro – thanks to Partneo increased the price of Euro 110.
  • The production of the rear-view mirror for the Clio III costs 10 Euro, Renault let its customers 79 Euro pay – Partneo increased to 165 Euro.
  • For the hubcap of the Dacia Logan from the house of Renault-cheap brand for the production of 3 Euro. Customers had to pay 21 Euro from this Partneo was 76 Euro.

Volkswagen Test Balloon

The Wolfsburg-based automotive group Volkswagen Accenture’s offer was obviously of great interest. The company is funded, between September and December 2011, a pilot test with Partneo for 1900 own spare parts in Germany and the UK. In a Summary of experiences with pricing at auto parts Accenture shows – with the note “confidential, internal only” – the emblems of several automobile manufacturers, including VW.


A Accenture presentation refers to experiences with car manufacturers

The result of the pilot tests we can see: only for the German market increased Partneo, according to the records of Accenture prices by 16 percent. Thus, the group a stroke of 22 million euros in extra profit. The Accenture shows also in presentations for other car companies, where the adviser with the VW results and those of other manufacturers promoted – to name but without the name.


Presentation for Mitsubishi with results from other manufacturers

Nevertheless, Partneo at VW came not. As it is, stand Accenture with its Software in competition to other consultants: Simon-Kucher & Partners. If VW chose this consultant, remains unclear. What is certain is that After the pilot with Accenture VW also knew that the prices could significantly be raised.

The car company has confirmed the offer from Accenture, and that it was ultimately knocked out. Neither Volkswagen nor Simon-Kucher & Partners wanted to take a position on whether you have worked together with the increase in the prices of spare parts. “The Price of auto parts is done on the Basis of the costs and the specific market environment,” says a VW spokesperson.

For the German business consultant Simon-Kucher & Partners, Rainer Meckes, makes it clear: “We develop together with our customers, strategic solutions at the optimum price management of spare parts.” The company was not a IT consulting and a software developer. To the conditions of each of the Clients to give no information.

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Partneos Price Trick

To date, the manufacturer of your replacement determine the partial prices, by the cost of production with a certain factor to multiply. Partneos algorithm is, however, exactly what is the maximum price for the car would pay the owner. To determine this, analysis of the parts exactly, in the groups pooled and the individual prices of the most expensive parts of this part family oriented.

The wide price, as a result thereof, detects the rises hardly anyone in the market in the face of tens of thousands of auto parts per the manufacturer, especially Partneo extra as a concealment tactic, only 70 percent of the spare parts more expensive, and the most lucrative for the manufacturer, 20% cheaper, and the Rest unchanged.

Even without the Software of Partneo the auto companies can dictate prices for many spare parts and therefore require too much money. For visible original parts such as headlights, or fenders of any car manufacturer is de facto a Monopolist. The design protection, which prevents imitators.

Attempts by the EU, the years ago put a stop to this, failed in the face of the car lobby. About the German companies have agreed to waive a prosecution of imitators – in fact, many of these in the market in the stocks, as soon as you provide your own parts.

Consequences of prevented competition

Alone for the VW Golf ADAC price increases for parts such as fenders from an average of 40 percent between 2006 and 2013, and has fiercely criticised the move. In comparison, mechanical parts such as brake pads have become, where free competition, only twelve per cent more expensive.

The ADAC has compared 2013 prices, visible parts of the car, where the manufacturer did not allow competition For the fender of a Golf VI VW requires 167 euros, a free trader 101 Euro. The headlights of the model, traders are 74 euros under the VW price, the front bumper even 195 Euro. Such discrepancies, the comparison also showed in the case of Ford and Mazda.

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