Calnetics Corporation v. Volkswagen of America, Inc.

SUPPLEMENTAL MEMORANDUM OPINION AND ORDER

The acquisition by Volkswagen of America, Inc. (hereinafter referred to as VWoA) of the air conditioning business of Delanair on September 26, 1969 was found by the Court to be in violation of the antitrust laws of the United States, Sections 4, 7 and 16 of the Clayton Act [ 15 U.S.C. §§ 15 , 18, 26]. That decision filed June 30, 1972, Calnetics v. Volkswagen of America, Inc., D.C., 348 F.Supp. 606 , left for consideration the scope of the equitable relief to be granted to restore the competitive marketplace in air conditioners for Volkswagen automobiles.

The parties have been given the opportunity to present evidence and to, fully argue to the Court the appropriate relief to be granted to overcome the anti-competitive effects of the acquisition.

VWoA has continued to oppose divestiture upon the ground that it —in the guise of VPC- — is building the best available air conditioner for Volkswagen automobiles. As compelling as that approach may seem, if the market we were considering was the automobile sales of VWoA, it simply misses the mark completely in the consideration that relief from an antitrust violation must be effective in the…