Ford Motor acquired Autolite, an independent manufacturer of spark plugs that accounted for 15 percent of national sales of spark plugs. GM, through its AC brand, accounted for another 30 percent of...



Ford Motor acquired Autolite, an independent manufacturer of spark plugs that accounted for 15 percent of national sales of spark plugs. GM, through its AC brand, accounted for another 30 percent of national sales. After Ford’s acquisition of Autolite, Champion was the only independent manufacturer of spark plugs remaining in the market. Its market share declined from 50 percent to 33 percent after the acquisition. The Justice Department sued Ford for violation of Section 7, and the federal district court ruled in favor of the United States. The court ordered Ford to do the following: (1) divest itself of Autolite; (2) stop manufacturing spark plugs for 10 years; and (3) purchase 50 percent of its requirements from Autolite for 5 years. Ford appealed. Who won and why?



May 02, 2022
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