Bought a Car Between 1998–2017? You Could Qualify for Compensation

Vehicles makes their way along the Gardiner Expressway in Toronto on Nov. 24, 2016. Nathan Denette/The Canadian Press

Canadian residents who bought or leased new vehicles between 1998 and 2017 could qualify for a share of a $50 million class-action settlement.

The compensation comes amid allegations that automobile parts manufacturers colluded to fix prices for parts installed in new vehicles over a period of nearly 20 years, in direct violation of Canadian competition laws, according to Siskinds LLP, one of the Canadian law firms involved in the series of associated class-action lawsuits.

Parts mentioned in the class action include air conditioning systems, door latches, braking systems, and shock absorbers, affecting about 1 million vehicles sold in Canada by manufacturers such as BMW, Ford, Hyundai, Kia, and Mercedes-Benz.

Vehicle manufacturers were not implicated, but class action lawsuits and criminal investigations have been launched on a global scale against auto parts companies, Siskinds said on its website. Canadian investigations were initiated in 2009 by the federal Competition Bureau.

Courts in Toronto, Vancouver, and Quebec granted approval for settlements in June 2023 amounting to roughly $78 million, after an earlier settlement of $26 million concerning a smaller set of affected vehicles was issued in March 2021.

A final disbursement of approximately $50 million is now available for owners of vehicles that were not previously eligible. This final round consists of nine settlements.

The vehicles included in this third and final round are:

• BMW/Mini Cooper – Dec. 5, 2014 to May 31, 2017
• Ford/Lincoln/Mercury – Aug. 1, 2015 to May 31, 2017
• Hyundai, Kia – Jan. 1, 2007 to May 31, 2016
• Mercedes-Benz/Smart Nov. 29, 2004 to May 31, 2017
• Mitsubishi – July 1, 1998 to July 31, 2015
• Suzuki – July 1, 1998 to May 31, 2016.

Canadians must have purchased or leased a new passenger car, sport utility vehicle, van, or light pick-up truck weighing up to 10,000 pounds from the designated manufacturers during the specified time frames to qualify for payment, according to the class action website.

“Payment will be distributed on a proportional basis, based on the value of your claim relative to the value of all approved claims,” the website says. “It is anticipated that all claims will receive a minimum payment of $25 per claim, NOT per vehicle.”

There may be exceptions to the compensation rule for auto dealers and owners of large fleets, but details have not been released on how much extra they might receive.

Who Can Submit a Claim?

The class actions began in British Columbia, Ontario, and Quebec, but are open to residents across all provinces and territories.

The website also notes that no vehicles will be subject to recall, and claims can be submitted even if an individual no longer owns the vehicle. The deadline to submit a claim for the newly included vehicles is May 12.

The site did not say how long it will take for claimants to receive their money, but indicated it could take awhile.

“Accurate processing takes time,” the claim website said. “Depending on the number of claims forms filed, it could be up to one year after the claims deadline before you receive compensation.”

The cutoff date for the last series of settlements was set for January 2024 and Canadians received their payments in August 2025. The previous settlements covered vehicles from Volkswagen, Chrysler, General Motors, Honda, Nissan, Mazda, and Toyota.

The parts manufacturers accused of price-fixing did not admit any wrongdoing or liability as part of the settlement, but 13 auto parts companies operating in Canada have pleaded guilty in connection with auto price fixing and were forced to pay fines of $85.93 million.

Japanese auto parts supplier Yazaki Corporation was hit with the largest fine—$30 million— followed by Mitsubishi Electric at $13.4 million, according to the Competition Bureau.

Other companies fined include Showa Corporation, Furukawa, INOAC Corporation, JTEKT Corporation, NSK Ltd., Panasonic, DENSO Corporation, Yamashita Rubber Co., and NGK Spark Plug Co., Ltd.

Nishikawa Rubber Co., Ltd. was fined US$130 million by a U.S. court to address anti-competitive conduct in both the United States and Canada.