Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Japanese executive indicted in U.S. auto parts bid rigging probe, (Sep 12, 2013)
Organizations Mentioned:G.S. Electech, Inc. | Toyota Motor Corp.
By Jeffrey May, J.D.
An executive for Japan-based auto parts supplier G.S. Electech, Inc. (GSE) has been charged with participating in an international conspiracy to fix prices and rig bids of auto parts used on antilock brake systems. Yesterday, a federal grand jury in Covington, Kentucky, returned an indictment against Japanese national Shingo Okuda (U.S. v. Okuda, Case No. 2:23-cr-00051-DLB-CJS).
Okuda, an executive at GSE during the relevant period of the indictment from 2003 to 2010, allegedly participated in a conspiracy to rig bids for, and fix prices of, speed sensor wire assemblies, also known as antilock brake system (ABS) skid sensor wires. Okuda and his co-conspirators allegedly carried out the conspiracy by, among other things, agreeing during meetings and discussions to coordinate bids and fix prices of automotive parts submitted to Toyota Motor Corporation.
GSE, which manufactures speed sensor wire assemblies in the United States and Japan, pleaded guilty last year to conspiring to fix prices of speed sensor wire assemblies. The company was fined $2.75 million. Including Okuda, 11 companies and 16 executives have been charged in the Justice Department’s ongoing investigation into the automotive parts industry.
According to the Justice Department announcement of the indictment, this is the first charge to be filed in Kentucky in the investigation. The earlier charges were filed in the federal district court in Detroit, where private antitrust litigation against auto parts suppliers also is pending.
The indictment against Okuda alleges that the conspiracy took place in Kenton County in the Eastern District of Kentucky and elsewhere. Toyota Motor Engineering and Manufacturing North America, Inc., which is responsible for Toyota’s engineering design, development, R&D and manufacturing activities in North America, is headquartered in Erlanger, Kentucky, in Kenton County.
Companies: G.S. Electech, Inc.; Toyota Motor Corp.
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