Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Fines imposed in auto parts makers U.S. price fixing probe, (Nov 14, 2013)

By Jeffrey May, J.D.

Over the last two weeks, the federal district court in Detroit has imposed hundreds of millions of dollars in fines on auto parts makers for their roles in price fixing conspiracies. In September, the Department of Justice announced the felony antitrust charges against nine auto parts makers. At that time, each company agreed to plead guilty and to pay a total of more than $740 million in fines.

On November 12, T.RAD Co. Ltd. was fined $13.75 million after pleading guilty to a one-count felony charge that it conspired to rig bids and fix prices for radiators and automatic transmission fluid warmers between November 2002 and February 2010. Judgment was entered in the case on November 13 (U.S. v. T.RAD Co., Ltd., Criminal No. 2:13-cr-20708-GCS-PJK).

Three other auto parts makers were fined on November 6 as a result of the September 26 charges. Mitsuba Corporation was fined $135 million, after pleading guilty to conspiring to restrain trade and to obstructing justice. Mitsuba admitted to fixing prices for windshield washer systems and components, windshield wiper systems and components, starter motors, power window motors, and fan motors, from approximately January 2000 until February 2010. The obstruction of justice charged was based on Mitsuba’s efforts to destroy evidence of collusion in the auto parts industry. Judgment was entered on November 6 (U.S. v. Mitsuba Corp., Criminal No. 2:13-cr-20712-GCS-PJK).

In addition, Mitsubishi Electric Corporation was fined $190 million after pleading guilty to a charge that it conspired to fix prices for auto parts, such as starter motors, alternators, and ignition coils, from at least as early as January 2000 until at least February 2010. Hitachi Automotive Systems Ltd. was also fined on November 6. The company was ordered to pay $195 million after pleading guilty to participating in the conspiracy with Mitsubishi Electric. Judgment was entered against Mitsubishi Electric on November 6, and against Hitachi on November 7 (U.S. v. Mitsubishi Electric Corp., Criminal No. 2:13-cr-20710-GCS-PJK; U.S. v. Hitachi Automotive Systems Ltd., Criminal No. 2:13-cr-20707-GCS-PJK).

As was previously announced, automotive air conditioning system manufacturer Valeo Japan Co., Ltd. was fined $13.6 million for its involvement in a price fixing conspiracy on November 5 (U.S. v. Valeo Japan Co., Ltd., Criminal No. 13-cr-20713).

Attorneys: Eric Michael Meiring for U.S. Department of Justice Antitrust Division. Steven M. Witzel (Fried, Frank, Harris, Shriver & Jacobson, LLP) for T.RAD Co., Ltd. George A. Nicoud III (Gibson, Dunn & Crutcher) for Mitsuba Corp. Charles B. Sklarsky (Jenner & Block) for Mitsubishi Electric Corp. Craig P. Seebald (Vinson & Elkins LLP) for Hitachi Automotive Systems Ltd. Brian Byrne (Cleary Gottlieb Steen & Hamilton LLP) for Valeo Japan Co., Ltd.

Companies: Hitachi Automotive Systems Ltd.; Mitsuba Corp.; Mitsubishi Electric Corp.; T.RAD Co. Ltd.; Valeo Japan Co. Ltd.

News: Antitrust AntitrustDivisionNews