Freightliner Sues GM Over Transmission Sales Freightliner LLC has sued General Motors Corp. over what Freightliner calls "predatory and discriminatory" activities related to the selling of heavier-duty automatic transmissions, The Associated Press reported last Thursday. GM's Allison Transmission unit, a division since 1929, controls virtually the entire automatic transmission market for a niche of vehicles that includes diesel-powered buses, recreational vehicles and walk-in vans, according to the Freightliner lawsuit. The lawsuit alleges that GM is leveraging that "monopoly" status to squeeze out new competitors and boost its share in other corners of the heavy-duty market, like large highway-bound trucks, AP said. GM is using its market power to commit "numerous violations of the antitrust laws, including exclusive dealing," forcing customers to buy an entire line of products, and "price discrimination," Freightliner said in the lawsuit, filed July 28 in the U.S. District Court of Oregon, where Freightliner LLC is incorporated. GM spokeswoman Toni Simonetti said "the allegations are out of order" and said the auto maker "will vigorously defend against these claims." She said GM considers Freightliner a good customer. The suit is a rare move, as it pits customer against supplier in an antitrust case, AP said. It comes at an awkward time for GM, which is conducting a financial analysis of the Indianapolis-based transmission division to evaluate the possibility of eventually selling it. It also comes as new competitors — most notably Caterpillar Inc. — look to take a bite out of GM's transmission business. L&MT
