Tag Archives: Honda Motor Co. Ltd.

T.RAD Executive Agrees to Plead Guilty to Bid Rigging and Price Fixing on Automobile Parts Installed in U.S. Cars

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An executive of Japan-based T.RAD Co. Ltd. has agreed to plead guilty and to serve one year and one day in a U.S. prison for participating in a conspiracy to fix prices of radiators installed in cars sold in the United States and elsewhere, the Department of Justice announced today.

A one-count felony charge was filed today in the U.S. District Court for the Eastern District of Michigan in Detroit against Kosei Tamura, a general manager for T.RAD.  According to the charge, Tamura, a Japanese national, conspired from as early as November 2002 until at least February 2010, by agreeing to allocate bids for, and prices of, radiators sold to Honda Motor Co. Ltd. and certain of its subsidiaries in the United States and elsewhere.  In addition to the prison sentence, Tamura has agreed to pay a $20,000 criminal fine and to cooperate with the department’s ongoing investigation.  The plea agreement is subject to court approval.

“Companies and their executives should do their part to ensure American consumers are guaranteed a fair marketplace within the automotive industry,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program.  “The Antitrust Division will continue to hold accountable the companies and executives who ignore these laws in order to make this a reality.”

T.RAD is a manufacturer of radiators and was engaged in the sale of radiators in the United States and elsewhere.  Radiators are devices located in the engine compartment of a vehicle that cool the engine.

In November 2013, T.RAD pleaded guilty and was sentenced to pay a $13.75 million criminal fine for its role in a conspiracy to fix the prices of radiators and automatic transmission fluid warmers.

Including today’s charges, 48 individuals have been charged in the department’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.

Tamura is charged with price fixing in violation of the Sherman Act, which carries a maximum sentence of 10 years in prison and a $1 million criminal fine for individuals.  The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

The current prosecution arose from an ongoing federal antitrust investigation into price fixing, bid rigging, and other anticompetitive conduct in the automotive parts industry, which is being conducted by each of the Antitrust Division’s criminal sections and the FBI.  This case was brought by the Washington Criminal I Section of the Antitrust Division with the assistance of the Detroit Field Office of the FBI.  Anyone with information concerning the focus of this investigation should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html or call the Detroit Field Office of the FBI at 313-965-2323.

Former Mitsuba Executive Agrees to Plead Guilty to Bid Rigging and Price Fixing on Automobile Parts Installed in U.S. Cars

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A former executive of Japan-based Mitsuba Corporation has agreed to plead guilty and serve 13 months in a U.S. prison for conspiring to fix the prices of products installed in cars sold in the United States and elsewhere, the Department of Justice announced today.

A one-count felony charge was filed today in the U.S. District Court for the Eastern District of Michigan in Detroit against Kazumi Umahashi, a Japanese national and former General Manager of Mitsuba.  Umahashi conspired from in or about June 2005 to in or about December 2009 by agreeing upon bids and prices for, and allocating the supply of, windshield wiper systems and starter motors sold to Honda Motor Co. Ltd. and its subsidiaries and affiliates in the United States and elsewhere, according to the charge.  Umahashi also has agreed to pay a $20,000 criminal fine and cooperate with the department’s ongoing investigation.  The plea agreement is 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.”

Mitsuba manufactures and sells a variety of automotive parts, including starter motors, which are small electric motors used in internal combustion engines, and windshield wiper systems.  On Nov. 6, 2013, Mitsuba pleaded guilty for its involvement in the conspiracy and agreed to pay $135 million in criminal fines.

Umahashi is charged with price fixing and bid rigging in violation of the Sherman Act, which carries a maximum sentence for individuals of 10 years and a fine of $1 million.  The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

Including today’s charges, 48 individuals have been charged in the department’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.

This prosecution arose from an ongoing federal antitrust investigation into price fixing, bid rigging, and other anticompetitive conduct in the automotive parts industry, which is being conducted by the Antitrust Division’s criminal enforcement sections and the FBI.  Today’s charge was brought by the Antitrust Division’s Washington Criminal I Section with the assistance of the FBI’s Detroit Field Office and the FBI headquarters’ International Corruption Unit.  Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258, visit www.justice.gov/atr/contact/newcase.html, or call the Detroit Field Office of the FBI at 313-965-2323.

Japanese Automotive Parts Manufacturer Agrees to Plead Guilty to Price Fixing and Bid Rigging on Automobile Parts Installed in U.S. Cars

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Showa Corp., an automotive parts manufacturer based in Saitama, Japan, has agreed to plead guilty and to pay a $19.9 million criminal fine for its role in a conspiracy to fix prices and rig bids for pinion-assist type electric powered steering assemblies installed in cars sold in the United States and elsewhere, the Department of Justice announced today.

According to a one-count felony charge filed today in the U.S. District Court for the Southern District of Ohio in Cincinnati, Showa engaged in a conspiracy to suppress and eliminate competition in the automotive parts industry by agreeing to rig bids for, and to fix, stabilize and maintain the prices of, certain pinion-assist type electric powered steering assemblies sold to Honda Motor Co. Ltd. and certain of its subsidiaries in the United States and elsewhere.  In addition to the criminal fine, Showa has agreed to cooperate with the department’s ongoing investigation.  The plea agreement will be subject to court approval.

“Today’s guilty plea marks the 27th time a company has been held accountable for fixing prices on parts used to manufacture cars in the United States,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division.  “The Antitrust Division and its law enforcement partners remain committed to prosecuting illegal cartels that harm U.S. consumers and businesses.”

According to the charge, Showa and its co-conspirators carried out the conspiracy through meetings, conversations and communications in which they discussed and agreed upon bids and price quotations on pinion-assist type electric powered steering assemblies to be submitted to Honda.  Showa then submitted quotations in accordance with those agreements and sold pinion-assist type electric powered steering assemblies at collusive and noncompetitive prices.  Showa and its co-conspirators monitored adherence to the agreed-upon bid-rigging and price-fixing scheme.  The conspirators kept their conduct secret by using code names and meeting at remote locations, among other things.  Showa’s involvement in the conspiracy lasted from at least as early as 2007 until as late as September 2012.

Showa manufactures and sells pinion-assist type electric powered steering assemblies.  These devices provide power to the steering gear pinion shaft from electric motors to assist the driver to more easily steer the automobile.  Pinion-assist type electric powered steering assemblies include an electronic control unit and link the steering wheel to the tires but do not include the column, intermediate shaft, steering wheel or tires.

Including Showa, 27 companies and 24 executives have pleaded guilty or agreed to plead guilty in the division’s ongoing investigation into price fixing and bid rigging in the auto parts industry and have agreed to pay a total of $2.3 billion in criminal fines.

Showa Corp. is charged with price fixing and bid rigging in violation of the Sherman Act, which carries maximum penalties of a $100 million criminal fine for corporations.  The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

Today’s charge is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by the Antitrust Division’s criminal enforcement sections and the FBI.  Today’s charge was brought by the Antitrust Division’s Chicago Office and the FBI’s Cincinnati Field Office with assistance from the U.S. Attorney’s Office for the Southern District of Ohio.  Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Cincinnati Field Office at 513-421-4310.

THREE TAKATA CORP. EXECUTIVES AGREE TO PLEAD GUILTY TO PARTICIPATING IN GLOBAL SEATBELT PRICE FIXING CONSPIRACY

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WASHINGTON — Three high-level executives of Tokyo-based Takata Corp. have  agreed to plead guilty for their participation in a conspiracy to fix prices of  seatbelts installed in cars sold in the United States, the Department of  Justice announced today.  The executives  have also agreed to serve time in a U.S. prison.

According to the one-count felony  charges filed separately against each of the executives today in the U.S.  District Court for the Eastern District of Michigan in Detroit, Yasuhiko Ueno, Saburo  Imamiya and Yoshinobu Fujino participated in a conspiracy to rig bids for, and  to fix, stabilize and maintain the prices of seatbelts sold to Toyota Motor  Corp., Honda Motor Co. Ltd., Nissan Motor Co. Ltd., Fuji Heavy Industries Inc.  – more commonly known by its brand name, Subaru – and Mazda Motor Corp. in the  United States and elsewhere.  The three  executives have agreed to serve prison sentences ranging from 14 to 19 months,  and to cooperate with the department’s ongoing investigation.

Ueno was  employed by Takata’s Auburn Hills, Mich.-based U.S. subsidiary, TK Holdings  Inc., in the United States as senior vice president for sales for Japanese manufacturers  from at least January 2006 through December 2007.  From early 2008 through June 2009, Ueno was  employed by Takata in Japan as deputy division director of the customer  relations division, and as director of the customer relations division from  June 2009 through at least February 2011.  According to the charge, Ueno’s involvement in  the conspiracy lasted from at least as early as January 2006 until at least  February 2011.  Ueno has agreed to serve 19  months in prison and to pay a $20,000 criminal fine.

Imamiya was  employed by Takata in Japan as general manager for Toyota sales from at least  January 2008 to July 2009, and as director of the customer relations division from  July 2009 through at least February 2011.  According to the charge, Imamiya’s involvement  in the conspiracy lasted from at least as early as January 2008 until at least  February 2011.  Imamiya has agreed to  serve 16 months in prison and to pay a $20,000 criminal fine.

Fujino was  employed by Takata in Japan as the manager of the Toyota group within the  customer relations division from at least January 2004 through June 2005, and  as the manager of the Mazda group within the customer relations division from  June 2005 through the end of 2007.  From  the beginning of 2008 through at least February 2011, Fujino was employed by TK  Holdings in the United States as assistant vice president for sales for Japanese  manufacturers.  According to the charge,  Fujino’s involvement in the conspiracy lasted from at least as early as January  2004 until at least February 2011.  Fujino  has agreed to serve 14 months in prison and to pay a $20,000 criminal fine.

Takata  Corp. is a manufacturer of automotive occupant safety systems, including  seatbelts.  Seatbelts are safety strap restraints designed to secure an  occupant in position in a vehicle in the event of an accident, and may be sold  bundled with related parts according to the needs of the automobile  manufacturer.  According to the  charges, the Takata executives and their co-conspirators carried out the  conspiracy by, among other things, agreeing during meetings and communications  to coordinate bids submitted to the automobile manufacturers.

On Sept. 26, 2013, Gary Walker, an  executive of TK Holdings Inc., agreed to plead guilty and serve a sentence of  14 months in prison for his involvement in the same conspiracy.  On Oct. 9, 2013, Takata Corp. agreed to plead  guilty for its involvement in the conspiracy and to pay a criminal fine of  $71.3 million.

Each of the  executives is charged with price fixing in violation of the Sherman Act, which  carries a maximum penalty of 10 years in prison and a $1 million criminal fine for  individuals.  The maximum fine for an  individual may be increased to twice the gain derived from the crime or twice  the loss suffered by the victims of the crime, if either of those amounts is  greater than the statutory maximum fine.

Including today’s charges, 24  individuals have been charged in the department’s investigation into price  fixing and bid rigging in the auto parts industry.  Additionally, 21 corporations have been  charged.

The current prosecution arose from an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by each of the Antitrust Division’s criminal enforcement sections and the FBI.  Today’s charges were brought by the National Criminal Enforcement Section, with the assistance of the Detroit, Michigan, Field Office of the FBI.  Anyone with information concerning the focus of this investigation should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html, or call the Detroit Field Office of the FBI at 313-965-2323.

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THREE TAKATA CORP. EXECUTIVES AGREE TO PLEAD GUILTY TO PARTICIPATING IN GLOBAL SEATBELT PRICE FIXING CONSPIRACY

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All Agree to Serve Prison Time in the United States

WASHINGTON — Three high-level executives of Tokyo-based Takata Corp. have  agreed to plead guilty for their participation in a conspiracy to fix prices of  seatbelts installed in cars sold in the United States, the Department of  Justice announced today.  The executives  have also agreed to serve time in a U.S. prison.

According to the one-count felony  charges filed separately against each of the executives today in the U.S.  District Court for the Eastern District of Michigan in Detroit, Yasuhiko Ueno, Saburo  Imamiya and Yoshinobu Fujino participated in a conspiracy to rig bids for, and  to fix, stabilize and maintain the prices of seatbelts sold to Toyota Motor  Corp., Honda Motor Co. Ltd., Nissan Motor Co. Ltd., Fuji Heavy Industries Inc.  – more commonly known by its brand name, Subaru – and Mazda Motor Corp. in the  United States and elsewhere.  The three  executives have agreed to serve prison sentences ranging from 14 to 19 months,  and to cooperate with the department’s ongoing investigation.

Ueno was  employed by Takata’s Auburn Hills, Mich.-based U.S. subsidiary, TK Holdings  Inc., in the United States as senior vice president for sales for Japanese manufacturers  from at least January 2006 through December 2007.  From early 2008 through June 2009, Ueno was  employed by Takata in Japan as deputy division director of the customer  relations division, and as director of the customer relations division from  June 2009 through at least February 2011.  According to the charge, Ueno’s involvement in  the conspiracy lasted from at least as early as January 2006 until at least  February 2011.  Ueno has agreed to serve 19  months in prison and to pay a $20,000 criminal fine.

Imamiya was  employed by Takata in Japan as general manager for Toyota sales from at least  January 2008 to July 2009, and as director of the customer relations division from  July 2009 through at least February 2011.  According to the charge, Imamiya’s involvement  in the conspiracy lasted from at least as early as January 2008 until at least  February 2011.  Imamiya has agreed to  serve 16 months in prison and to pay a $20,000 criminal fine.

Fujino was  employed by Takata in Japan as the manager of the Toyota group within the  customer relations division from at least January 2004 through June 2005, and  as the manager of the Mazda group within the customer relations division from  June 2005 through the end of 2007.  From  the beginning of 2008 through at least February 2011, Fujino was employed by TK  Holdings in the United States as assistant vice president for sales for Japanese  manufacturers.  According to the charge,  Fujino’s involvement in the conspiracy lasted from at least as early as January  2004 until at least February 2011.  Fujino  has agreed to serve 14 months in prison and to pay a $20,000 criminal fine.

Takata  Corp. is a manufacturer of automotive occupant safety systems, including  seatbelts.  Seatbelts are safety strap restraints designed to secure an  occupant in position in a vehicle in the event of an accident, and may be sold  bundled with related parts according to the needs of the automobile  manufacturer.  According to the  charges, the Takata executives and their co-conspirators carried out the  conspiracy by, among other things, agreeing during meetings and communications  to coordinate bids submitted to the automobile manufacturers.

On Sept. 26, 2013, Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, an  executive of TK Holdings Inc., agreed to plead guilty and serve a sentence of  14 months in prison for his involvement in the same conspiracy.  On Oct. 9, 2013, Takata Corp. agreed to plead  guilty for its involvement in the conspiracy and to pay a criminal fine of  $71.3 million.

Each of the  executives is charged with price fixing in violation of the Sherman Act, which  carries a maximum penalty of 10 years in prison and a $1 million criminal fine for  individuals.  The maximum fine for an  individual may be increased to twice the gain derived from the crime or twice  the loss suffered by the victims of the crime, if either of those amounts is  greater than the statutory maximum fine.

Including today’s charges, 24  individuals have been charged in the department’s investigation into price  fixing and bid rigging in the auto parts industry.  Additionally, 21 corporations have been  charged.

The current prosecution arose from an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by each of the Antitrust Division’s criminal enforcement sections and the FBI.  Today’s charges were brought by the National Criminal Enforcement Section, with the assistance of the Detroit, Michigan, Field Office of the FBI.  Anyone with information concerning the focus of this investigation should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html, or call the Detroit Field Office of the FBI at 313-965-2323.