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Car Makers Used Software to Artificially Raise Spare Parts Prices

posted by CoolHand on Tuesday June 05 2018, @03:22PM   
from the sticking-it-to-the-consumer dept.

MrPlow writes:

Submitted via IRC for SoyCow8317

Car makers like Jaguar Land Rover and Peugeot have been accused of using special software to raise spare parts prices.

Source: https://www.engadget.com/2018/06/04/car-makers-used-software-to-raise-spare-parts-prices/

Ever had the nagging suspicion that your car's manufacturer was charging outrageous prices for parts simply because it could? Software might be to blame. Reuters has obtained documents from a lawsuit indicating that Jaguar Land Rover, Peugeot, Renault and other automakers have been using Accenture software (Partneo) that recommended price increases for spare parts based on "perceived value." If a brand badge or other component looked expensive, Partneo would suggest raising the price up to a level that drivers would still be willing to pay. It would even distinguish parts based on whether or not there was "pricing supervision" over certain parts (say, from insurance companies or focused publications) to avoid sparking an outcry.

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Original Submission

• Re:software doesn't cause cruelty Re:software doesn't cause cruelty (Score: 3, Interesting) by frojack on Tuesday June 05 2018, @09:35PM (1 child)

  by frojack (1554) on Tuesday June 05 2018, @09:35PM (#689038) Journal

  . But the new competitor isn't going to be able to easily enter, because the step of acquiring the capital is often insurmountable.

  Or, say with a Car Analogy, (remember where we started?)...

  The current manufacturer of that particular car still holds a bunch of patents, and it ties into their on-board computer system which tries to protect patents when parts are added.

  You've got a warehouse full of parts, and you have to maximize profit. You take the best course of action on each part.
  Part fits multiple model years? Price remains high. Part has several third party competitors, price stays low.

  I suggest the Accenture software probably reduces prices on over stocked items, as well as those that can be obtained from multiple sources. But we won't hear about that on SN. Only price rises.

  --
  No, you are mistaken. I've always had this sig.

  Parent

  Starting Score:	1		point
  Moderation		+1
  Interesting=1, Total=1
  Extra 'Interesting' Modifier		0
  Karma-Bonus Modifier		+1
  Total Score:		3

• Re:software doesn't cause cruelty (Score: 2) by sjames on Friday June 08 2018, @12:40AM

  by sjames (2882) on Friday June 08 2018, @12:40AM (#690132) Journal

  That's because a competitive market is what is supposed to be happening. The fact that it's increasingly not the case is a problem that needs to be addressed.

  "Man walks past bank, doesn't rob it" isn't news.

  Parent