Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Japan-based Sanden to plead guilty for role in auto parts cartel, (Jan 27, 2015)

By Jeffrey May, J.D.

Sanden Corp., a Japan-based automotive parts manufacturer, is the 33rd company to plead guilty or agree to plead guilty in the Department of Justice Antitrust Division's ongoing investigation of the auto parts industry, the government announced today. A one-count information was filed in the federal district in Detroit against Sanden for conspiring to fix the prices of compressors used in air conditioning systems sold to Nissan North America Inc. (U.S. v. Sanden Corp., Criminal No. 2:15-cr-20033).

According to the Justice Department, Sanden has agreed to plead guilty and to pay a $3.2 million criminal fine for its role in the conspiracy. The alleged conduct took place between August 2008 and April 2009. The filing states that the statute of limitations was tolled from January 31, 2014, until February 28, 2015, pursuant to an agreement between Sanden and the United States.

The Justice Department alleged that Sanden and its co-conspirator held meetings and conversations to discuss and agree upon the bids and price quotations submitted to Nissan for the purchase of compressors used in automotive air conditioning systems. The charge does not identify Sanden's alleged co-conspirator.

In September 2013, however, the Justice Department announced that Valeo Japan Co. Ltd. would plead guilty to conspiring to fix the prices of air conditioning systems sold to Nissan North America, as well as other car makers. Air conditioning systems are defined by the government as automotive compressors, condensers, HVAC units (typically consisting of a blower motor, actuators, flaps, evaporator, heater core, and filter embedded in a plastic housing), control panels, sensors, and associated hoses and pipes. In November 2013, following a guilty plea, Valeo was fined $13.6 million.

Companies: Sanden Corp.; Valeo Japan Co. Ltd.

News: Antitrust AntitrustDivisionNews