A Cork businessman yesterday pleaded guilty to helping Ford dealers engage in fixing the selling price of cars after he was prosecuted by the Competition Authority in the first case of its kind relating to the motor trade.
Denis Manning pleaded guilty to aiding and abetting the Irish Ford Dealers' Association and its members in implementing an agreement aimed at preventing, restricting or distorting competition in the motor trade so as to directly or indirectly fix the selling price of cars.
Manning, of Allendale Avenue, Melbourne Estate, Bishopstown, Cork, pleaded guilty to the charge at his arraignment before Mr Justice Liam McKechnie at the Central Criminal Court in Cork yesterday.
Manning admitted committing the offence between July 1st, 2002, and June 30th, 2003.
John Dolan, of the Office of the Director of Public Prosecutions (DPP), told Mr Justice McKechnie that the State was entering a nolle prosequi - to proceed no further - with respect to a similar charge relating to the period May 24th, 2001 to June 30th, 2002.
The charges follow an investigation by the Competition Authority in 2003 into the prices being charged for Ford cars.
Yesterday, counsel for Manning, Tom Creed SC, said he would submit a report in mitigation, showing that the charge related to a very small proportion of the overall new car trade in Ireland.
Mr Creed said the charge related only to the purchase of new Ford cars for cash and did not relate to the purchase of new cars involving trade-ins and, as such, constituted only 6 per cent of Ford's 12 per cent share of new car sales - or just 0.7 per cent of the overall Irish new car market.
He would adduce evidence showing how the system came about and how Ford was obliged to introduce a price list with certain discounts to allow it to compete with other marques such as General Motors, Toyota and Nissan.
"There was a price list to keep heads above waters but, unfortunately, it went beyond that to enforcement which is not allowed under the Act," said Mr Creed, adding that the defence had commissioned a report from an economic consultant on the matter.
Mr Justice McKechnie remanded Manning on continuing bail to appear again at the Central Criminal Court sitting in Cork on February 9th for sentence.
Under the Competition Act 2002, conviction can carry a fine of €4 million or 10 per cent of the individual's turnover in the previous financial year ending 12 months prior to conviction and/or up to five years' imprisonment.
