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A Car and Truck Manufacturer Has Noticed Increasing Sales of Aftermarket

Question 151

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A car and truck manufacturer has noticed increasing sales of aftermarket sports racks by companies such as Yakima and Thule.Along with this,it has noticed that fewer customers order sport utility vehicles,minivans and station wagons with the optional,factory-installed luggage racks.Marketing surveys show that many customers want the flexibility that these aftermarket racks provide.For example,they are removable,and they can be fitted with attachments for various kinds of equipment such as skis and kayaks.The manufacturer has introduced its own line of similar removable racks,but they have not sold well.One reason is a perception of lower quality that is only partially accurate.The car and truck manufacturer has decided to include one of these racks as standard equipment with all of its sport utility vehicles,minivans and stations wagons.It will include the basic rack,but no special attachments.The price of these vehicles will increase to cover the cost of the rack.Because the rack is removable,there is no problem with a customer being forced to drive a vehicle with a rack on it that the customer does not want.Discuss the antitrust implications of this action.

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