Class claims Porsche monopolizes repairs on US vehicles

ATLANTA (CN) — The exclusive U.S. importer of Porsche vehicles faces an antitrust class action over claims it has unlawfully monopolized the market for repair services.

Plaintiff Fleet Salvage Systems Inc. owns a Porsche Cayenne vehicle in Longwood, Florida, and argues the vehicle required maintenance, but it could not be performed by any independent repair shops due to its electronic access restrictions.

When it took the vehicle to a mechanic for an oil change and oil filter replacement, the mechanics were unable to “clear the code” to reset the oil indicator.

In its complaint filed in the U.S. District Court for the Northern District of Georgia Wednesday, the company claims Porsche intentionally designed certain vehicles’ electronic control units so only Porsche-authorized dealers can access them to complete any servicing, repairs or routine maintenance.

As a result, other automotive mechanics are foreclosed from competing in the market for service on Porsche vehicles because they are unable to access the essential diagnostic, calibration, coding and software required, according to the plaintiffs.

They argue this has allowed Porsche to acquire and maintain monopoly power over the repair service market.

“Porsche’s dealers are able to maintain a 100% market share and charge supra-competitive prices for all repairs and maintenance on affected vehicles, and Porsche itself reaps additional profits through parts sales,” Fleet Salvage Systems wrote in the suit.

Porsche’s restrictions inflate service and repair prices above competitive levels, harming competition for servicing and repairs in violation of antitrust laws, it added. These authorized Porsche dealers charge more for service and use more expensive parts in their repair, forcing plaintiffs to suffer increased costs while limiting their options as consumers, it argues.

The exact number of class members is not yet known, but Fleet Salvage wrote that it estimates thousands of individuals and entities throughout the country who paid Porsche dealers for repairs or services would be affected. It is currently represented by attorney Gregory Bosseler from the Atlanta-based Morgan & Morgan firm.

Headquartered in Atlanta since 1998, Porsche North America imports the Porsche 911, 718 Boxster, 718 Cayman, Macan, Cayenne, Panamera and Taycan from Stuttgart, Germany.

Fleet Salvage seeks injunctive relief requiring Porsche to provide fully functional servicing and repair capabilities of the affected vehicles to independent mechanics on reasonable and nondiscriminatory terms, as well as an award of damages, including actual, nominal and consequential damages to be determined.

The issue of vehicle manufacturers attempting to monopolize their repair services has become a national concern over recent years. In February 2022, U.S. lawmakers introduced “Right to Repair” legislation, which aimed to allow consumers the freedom to choose where they can repair not only their vehicles but also Apple products.

In March, the House Energy and Commerce Committee voted to send the Right to Equitable and Professional Auto Industry Repair, or REPAIR, Act to the full U.S. House of Representatives for consideration. If enacted, this legislation would give car owners access to their vehicle-generated repair data and tools from vehicle manufacturers.

Representing the auto industry, the Alliance for Automotive Innovation states on its official policy page that vehicle owners “have the right to choose where they repair their vehicle” and that manufacturers already provide repair information to independent facilities.

However, manufacturers continue to control access to vehicle data architecture, typically through subscription-based repair portals such as Toyota’s Technical Information System, Honda’s Service Information System and GM’s ACDelco Technical Delivery System.

Porsche Cars North America Inc. does not comment on pending litigation, a corporate spokesperson said Thursday when asked about the accusations.

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