Automotive: software accused of inflating prices of spare parts

Several carmakers, including Renault, PSA and Jaguar Land Rover, have inflated more than a billion dollars (about 850 million euros) in ten years the turnover they perform on spare parts through software, according to court documents.

This software, marketed by Accenture , identifies the parts that consumers think are more expensive than they actually are. In a presentation to its customers, the consulting company claimed a potential price increase of some parts up to 500%, without alienating buyers.

These details are contained in a complaint filed against Accenture by the computer scientist who created the software. It reveals that car manufacturers use sophisticated technologies to take advantage of consumer ignorance.

Ignorance of consumers

For some experts, the case underscores the extent to which pricing software can expose the risk of anti-competitive practices. The software, called Partneo, is based on what Accenture describes in its presentations as “methodology of perceived value in terms of price”. This allows manufacturers to identify parts that, because of their appearance, are more valuable to consumers than their actual cost.

The groups can thus “increase the selling prices which are lower than the psychologically acceptable ceilings”, explains Laurent Boutboul, the creator of the software, in the text of the complaint. He accuses Accenture of not having paid him the amount agreed for the repurchase of his company in 2010, and to damage his reputation by marketing and configuring Partneo in a manner that does not comply with antitrust rules.

The court documents and presentations were obtained by the French news site Mediapart and shared with Reuters and the European network of investigative media organs EIC.

denials

Accenture has denied that its software violates the rules of competition or misleads consumers. “Solutions of this type, which allow companies to evaluate and control their products, are widely used in all industries. They help companies analyze the visibility and availability of spare parts, “says the group in a statement. Renault and PSA responded, for their part, that their pricing policies were correct.

“The group’s after-sales strategy is to offer ranges of spare parts that meet the needs of all consumers, regardless of their budget, with the highest level of reliability and security,” PSA insists in a statement. . For its part, the diamond brand states “strive to provide its customers a wide variety of quality spare parts, the price is calculated on parameters that Renault considers just and fair.”

Reuters source

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