Antitrust Law Daily Wrap Up, ANTITRUST NEWS: U.S. investigation of auto parts industry keeps rolling along, (Sep 16, 2015)
Organizations Mentioned:Kayaba Industry Co. Ltd. | Nissan Motor Co., Ltd.
By Jeffrey May, J.D.
A Japanese manufacturer of automotive and motorcycle components has agreed to plead guilty and to pay a $62 million fine for its role in a conspiracy to fix prices for shock absorbers sold to vehicle manufacturers. Kayaba Industry Co. Ltd. will admit to participating in a conspiracy with two other unnamed Japanese companies to allocate markets, rig bids, and fix prices (U.S. v. Kayaba Industry Co. Ltd., Case: 1:15-cr-00098-MRB).
A one-count information was filed today in the federal district court in Cincinnati, naming Kayaba Industry, also known as KYB. According to the Department of Justice Antitrust Division, KYB allegedly agreed to allocate the supply of shock absorbers sold and to determine the price submitted to the targeted vehicle manufacturers. Those vehicle manufacturers included Fuji Heavy Industries Ltd., which manufactures Subaru vehicles, Honda Motor Co. Ltd., Kawasaki Heavy Industries Ltd., Nissan Motor Company Ltd., Suzuki Motor Corporation, and Toyota Motor Company. In addition, KYB allegedly agreed to coordinate on price adjustments requested by the vehicle manufacturers.
The charge against KYB is the result of an ongoing federal antitrust investigation into the automotive parts industry. Including KYB, 37 companies and 55 executives have been charged in the Antitrust Division’s investigation and have agreed to pay a total of more than $2.6 billion in criminal fines to date, the Justice Department announced. The charge against KYB is the first to focus on shock absorbers.
Shock absorbers are part of the suspension system on automobiles and motorcycles, the Justice Department explained in its filing. Also called dampers, the parts absorb and dissipate energy to help cushion vehicles and improve ride quality and vehicle handling, it was noted.
In addition to requiring KYB to pay the fine, the company’s plea agreement is conditioned on the firm’s cooperation in the government’s ongoing investigation. The plea agreement is subject to court approval.
Companies: Kayaba Industry Co. Ltd.
News: Antitrust AntitrustDivisionNews