What is the Mexican Auto Transport Scandal?
The auto transport industry made headlines this week, but unfortunately, it was not portrayed in the most positive light. Seven companies operating in Mexico have been fined a total of $32 million due to allegations of a collusion between 2009 and 2015. The Federal Economic Competition Commission (FECC) determined that the companies in question drafted business agreements that unfairly assigned transport routes to specific shippers. These routes span the course of five different Mexico ports, as well as covering seven countries all across the globe. By creating these corrupt agreements, the companies effectively reduced competition and were able to unjustly increase prices, which directly affected any companies using these services in the automotive industry, as well as those needing to transport farm and construction machinery too.
Thus far, only one company involved has released a statement since the FECC announcement, and that is MOL (Mitsui OSK Lines). MOL offered their sincerest apologies but was also quick to point out that they are only liable for a small penalty of about $600 because they had ceased their questionable activities prior to the full investigation being launched.
Without a doubt, more companies involved will release official statements over the course of this week. The FECC did not disclose what portion of the total fine each company is responsible for, so it will be interesting to find out who bears the majority of the financial burden. A1 Auto Transport will be closely monitoring the situation to see how it all plays out, but rest assured, if you need to ship into Mexico, we are still a safe bet.
Written By:Amanda Williams
Amanda Williams is a mother, an author, and entrepreneur. Her pastimes include the San Diego Padres, anything and everything Disney related, reading for pleasure, running for fun, family trips to Sea World, the San Diego Zoo, and Disneyland, and of course, spending quality time with her two beautiful daughters.
Amanda is uniquely qualified to write on all things auto transport, working in the industry as a sales agent for over 10 years and also shipping cars herself on multiple occasions, all of which allowed her to learn the industry from both sides. Amanda also has a comprehensive knowledge of vehicles due to a budding passion and thirst for knowing all things automotive.
Amanda was born and raised in the small town of Santa Cruz, California, but moved to San Diego at age 17 to pursue a degree in psychology at San Diego State University. She graduated in just 3 short years with a Bachelor's in Psychology with a Minor in Religious Studies, but chose instead to pursue a career in finance, working at multiple financial institutions before discovering her true passion for writing.