Autos: Cooperation or Conspiracy?

To combat automobile exhaust fumes, which are responsible for about 60% of air pollution in the U.S., the Federal Government has encouraged automakers to work together in developing antipollution devices for cars and trucks. Last week, in a civil antitrust suit filed in the U.S. District Court at Los Angeles, the Justice Department contended that the nation’s auto companies have in deed cooperated — but to impede, rather than promote, pollution control. Named in the suit as defendants were General Motors, Ford, Chrysler, American Motors and the Automobile Manufacturers Association. Seven smaller manufacturers were listed as co-conspirators but not as defendants.

The suit accuses Detroit of “hindering and delaying” the development of antipollution devices as far back as 1953. It focuses on a “blow-by” connection that cuts down the outflow of hydro carbons and carbon monoxide by feeding unburned gasoline in the crankcase back into the engine. The blow-by, developed by G.M., costs the consumer from $5 to $10. It has been used on a royalty-free basis on all cars, starting with 1963 models. According to the Justice Department, the automakers could have installed the blow-by connectors a year earlier but agreed among them selves on a delay.

No Damages. In addition, the Government alleges that auto manufacturing executives lied by contending that it would be “technologically impossible” to introduce new exhaust-pollution-control devices on all 1966 models. They finally did so, says the Justice Department suit, only because companies out side the auto industry had developed similar devices. Detroit’s car companies are also accused of using a cross-licensing agreement to restrict the prices that they would pay to outside companies for pollution-control patents.

Though no outside firms are identified in the Government suit, a number of them, including W. R. Grace and American Machine & Foundry, have developed devices for control of automobile exhaust pollution. In the case of those two companies, Detroit rejected their exhaust-control systems and adopted two of its own. Along with the older blow-by devices, the two newer systems are standard equipment — at a cost to the consumer of up to $50 each — on current Detroit models.

Auto manufacturers deny any wrong doing. The charges, said Chrysler, would “inevitably inhibit” the kind of joint at tacks on pollution that the Government claims it wants. Instead of demanding damages, the suit asks that the automakers be enjoined from doing in the future what they disclaim having done in the past.