The Autolite case : an economic analysis of a vertical merger and potential competition

Abstract

On April 12, 1961, the Ford Motor Company purchased the following assets from the Electric Autolite Company of Toledo, Ohio: 1. Autolite's only spark plug plant in the United States; 2. One of its six battery plants; 3. The Autolite trade name and trademark; and 4. All patent and license agreements covering the manufacture of spark plugs and batteries. In addition, Ford obtained limited distribution rights in the form of Autolite's nationwide franchises. These included distributors, jobbers, and dealers which were involved in the sales of automotive replacement parts; it also included the sales organization that served these accounts. Finally, a written agreement was contracted between the two firms calling for Autolite to furnish certain spark plugs, batteries, and ignition parts to Ford for a period not exceeding three years from the date of purchase

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