Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Two executives of Japanese auto parts manufacturers plead guilty to bid-rigging, price-fixing, (Dec 1, 2014)

By Edward L. Puzzo, J.D.

Executives of two Japanese manufacturers have agreed to plead guilty to bid-rigging and price-fixing in the sale of auto parts to Honda Motor Company.

Mitsuba Corporation and T.RAD Co. Ltd. are Japanese manufacturers of auto parts. In November 2013, Mitsuba pleaded guilty to its role in a price-fixing conspiracy involving starter motors and windshield wiper systems, and was sentenced to pay a criminal fine of $135 million. That same month, T.RAD pleaded guilty to its role in a price-fixing conspiracy involving radiators and automatic transmission fluid warmers, and was sentenced to pay a criminal fine of $13.75 million.

Today, according to the Justice Department, Kazumi Umahashi, a former Mitsuba general manager, has pleaded guilty to conspiring between June 2005 and December 2009 to fix prices for starter motors and windshield wiper systems sold to Honda Motor Co. in the United States and elsewhere, in violation of the Sherman Act. In addition to his guilty plea, Tamura will be sentenced to a prison term of 13 months, pay a $20,000 criminal fine and cooperate with the DOJ’s ongoing investigation.

Also today, Kosei Tamura, a T.RAD general manager, has pleaded guilty to conspiring between November 2002 and February 2010 to fix prices for radiators sold to Honda Motor Co. in the United States and elsewhere, the Justice Department announced. In addition to his guilty plea, Tamura will be sentenced to a prison term of one year and a day, pay a $20,000 criminal fine and cooperate with the DOJ’s ongoing investigation.

Both felony charges were filed December 1, 2014 in the federal district court in Detroit, and the plea agreements are subject to court approval.

“The Antitrust Division has uncovered dozens of conspiracies to fix prices in the automotive industry,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program. “The impact of these schemes has affected nearly every American. We will continue our efforts to hold culpable companies and individuals accountable for their illegal actions.”

Including today’s charges, 48 individuals have been charged in the DOJ’s ongoing investigation into price fixing and bid rigging in the auto parts industry. Additionally, 32 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of more than $2.4 billion in fines.

Companies: Mitsuba Corporation; T.RAD Co. Ltd.; Honda Motor Co. Ltd.

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