Tag Archives: Subaru

Executive of Japanese Automotive Parts Manufacturer Indicted for Role in Conspiracy to Fix Prices

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A Detroit federal grand jury returned a one-count indictment against an executive of a Japanese manufacturer of automotive parts for his participation in a conspiracy to fix prices of seatbelts, the Department of Justice announced today.

The indictment, filed today in the U.S. District Court for the Eastern District of Michigan, charges Hiromu Usuda, an executive at Takata Corp., with conspiring to rig bids for, and to fix, stabilize and maintain the prices of, seatbelts sold to Toyota Motor Corp., Honda Motor Company Ltd., Nissan Motor Co. Ltd., Mazda Motor Corp., Fuji Heavy Industries Ltd. – more commonly known by its brand name, Subaru – and/or certain of their subsidiaries, for installation in vehicles manufactured and sold in the United States and elsewhere.  Usuda served as Group and Department Manager in the Customer Relations Division at Takata, from January 2005 until at least February 2011.

“Antitrust violators who refuse to accept responsibility for their crimes leave us no choice but to indict,” said Brent Synder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program.  “We will continue to prosecute those that commit these crimes.”

The indictment alleges, among other things, that from at least Jan. 1, 2005, through at least February 2011, Usuda and others attended meetings with co-conspirators and reached collusive agreements to rig bids, allocate the supply and fix the prices of seatbelts sold to the automobile manufacturers.  It alleges that Usuda participated directly in the conspiratorial conduct and that he directed, authorized and consented to his subordinates’ participation.

Takata is a Tokyo-based manufacturer of automotive parts, including seatbelts.  Takata supplies automotive parts to automobile manufacturers in the United States, in part, through its U.S. subsidiary, TK Holdings Inc., located in Auburn Hills, Michigan.  Takata pleaded guilty on Dec. 5, 2013, for its involvement in the conspiracy, and was sentenced to pay a criminal fine of $71.3 million.  Four other executives from Takata have pleaded guilty, have been sentenced to serve time in a U.S. prison and to pay criminal fines for their roles in the conspiracy.

Including Usuda, 50 individuals have been charged in the government’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.

Usuda 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 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 indictment 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 four of the Antitrust Division’s criminal enforcement sections and the FBI.  Today’s charge was brought by the Antitrust Division’s Washington Criminal I Section and the FBI’s Detroit Field Office, with the assistance of 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 FBI’s Detroit Field Office at 313-965-2323.

TOYODA GOSEI CO. LTD. AGREES TO PLEAD GUILTY FOR FIXING PRICES AND RIGGING BIDS ON AUTOMOBILE PARTS INSTALLED IN U.S. CARS

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WASHINGTON — Toyoda Gosei Co. Ltd., an automotive parts manufacturer based in Aichi, Japan, has agreed to plead guilty and to pay a $26 million criminal fine for its role in conspiracies to fix prices and rig bids for automotive hoses, airbags and steering wheels sold to automobile manufacturers, the Department of Justice announced today.

According to a two-count felony charge filed today in the U.S. District Court for the Northern District of Ohio in Toledo, Toyoda Gosei conspired to fix the prices of certain automotive hoses sold to Toyota Motor Corp. and certain of its subsidiaries, affiliates and suppliers (collectively Toyota), in the United States; and conspired to fix the prices of automotive airbags and steering wheels sold to Toyota and Fuji Heavy Industries Ltd. and certain of its subsidiaries, affiliates and suppliers, and certain of their subsidiaries, affiliates and suppliers (collectively Subaru), in the United States and elsewhere. In addition to the criminal fine, Toyoda Gosei has agreed to cooperate in the department’s ongoing investigation.  The plea agreement will be subject to court approval.

“When purchasing an automobile, American consumers should feel confident that the sticker price is based on fair market costs to manufacture the vehicle,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program.  “The Antitrust Division will continue to prosecute cases in the auto parts industry to ensure fair and competitive prices are maintained.”

Toyoda Gosei and its co–conspirators, according to the charges, conspired through meetings and conversations in which they discussed and agreed upon bids and price quotations to be submitted to certain automakers and to allocate the supply of the products to those automakers.  In furtherance of the agreements, Toyoda Gosei sold certain automotive hoses at noncompetitive prices to Toyota in the United States, and sold airbags and steering wheels at noncompetitive prices to Toyota and Subaru in the United States and elsewhere.  Toyoda Gosei’s involvement in the automotive hoses conspiracy lasted from at least as early as February 2004 until at least September 2010 and its involvement in the automotive airbags and steering wheels conspiracy lasted from at least as early as September 2003 until at least September 2010.

Toyoda Gosei manufactures and sells a variety of automotive parts, including certain automotive hoses, airbags and steering wheels. The charges against Toyoda Gosei are the latest in the department’s ongoing investigation into anticompetitive conduct in the automotive parts industry. These are the first charges filed relating to automotive hoses sold to automobile manufacturers.

To date, 43 individuals have been charged in the government’s ongoing investigation into price fixing and bid rigging in the auto parts industry.  Twenty-nine companies, including Toyoda Gosei, have pleaded guilty or agreed to plead guilty and have agreed to pay a total of nearly $2.4 billion in fines.

Toyoda Gosei is charged with price fixing and bid rigging in violation of the Sherman Act, which carries a maximum penalty for corporations of $100 million for each violation.  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 Cleveland Field Office, Lima Resident Agency, with the assistance of the FBI headquarters’ International Corruption Unit and the U.S. Attorney’s Office for the Northern 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 Cleveland Field Office at 216-522-1400.

 

FORMER TOP EXECUTIVE OF JAPANESE AUTOMOTIVE PARTS

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WASHINGTON — A Detroit federal grand jury returned a one-count indictment against a former top executive of a Japanese manufacturer of automotive parts for his participation in a conspiracy to fix prices of seatbelts, the Department of Justice announced today.

The indictment, filed today in the U.S. District Court for the Eastern District of Michigan, charges Gikou Nakajima, a former executive at Takata Corp., with participating 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, seatbelts sold to Toyota Motor Corp., Honda Motor Company Ltd., Nissan Motor Co. Ltd., Mazda Motor Corp., Fuji Heavy Industries Ltd. – more commonly known by its brand name, Subaru – and/or certain of their subsidiaries, for installation in vehicles sold in the United States and elsewhere.  Nakajima served as director of customer relations division at Takata, the highest-level global sales executive at the company, from June 2005 until at least June 2009.

“Today’s indictment demonstrates that the Antitrust Division continues to hold accountable executives who collude with their competitors,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program.  “The division will not tolerate executives participating in – and directing their subordinates to participate in – conspiracies to raise the prices on automotive parts that are essential to the safety of U.S. consumers.”

The indictment alleges, among other things, that from at least as early as September 2005 and continuing until June 2009, Nakajima and others attended meetings with co-conspirators and reached collusive agreements to rig bids, allocate the supply and fix the prices of seatbelts sold to the automobile manufacturers. It alleges that Nakajima participated directly in the conspiratorial conduct, and that he directed, authorized and consented to his subordinates’ participation.

Takata is a Tokyo-based manufacturer of automotive parts, including seatbelts.  Takata supplies automotive parts to automobile manufacturers in the United States, in part, through its U.S. subsidiary, TK Holdings Inc., located in Auburn Hills, Michigan.  Takata pleaded guilty on Dec. 5, 2013, for its involvement in the conspiracy, and was sentenced to pay criminal fine of $71.3 million.  Four other executives from Takata have pleaded guilty and have been sentenced to serve time in a U.S. prison and to pay criminal fines for their roles in the conspiracy.

Including Nakajima, 35 individuals have been charged in the government’s ongoing investigation into price fixing and bid rigging in the auto parts industry, 24 of whom have pleaded guilty or agreed to plead guilty.  Of those, 22 have been sentenced to serve prison terms ranging from a year and one day to two years.  Additionally, 27 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of more than $2.3 billion in fines.

Nakajima 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 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 indictment 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 four of the Antitrust Division’s criminal enforcement sections and the FBI.  Today’s charge was brought by the Antitrust Division’s Washington Criminal I Section and the FBI’s Detroit Field Office, with the assistance of 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 FBI’s Detroit Field Office at 313-965-2323.

Bridgestone Corp. Executive Agrees to Plead Guilty for Fixing Prices and Rigging Bids on Auto Parts Installed in U.S. Cars

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A former Bridgestone Corp. executive has agreed to plead guilty and to serve 18 months in a U.S. prison for his role in an international conspiracy to fix prices and rig bids of automotive anti-vibration rubber parts sold in the United States and elsewhere, the Department of Justice announced today.

According to the one-count felony charge filed today in the U.S. District Court for the Northern District of Ohio in Toledo, Yusuke Shimasaki, along with co-conspirators, engaged in a conspiracy to allocate sales of, to rig bids for, and to fix, raise and maintain the prices of automotive anti-vibration rubber parts sold to Toyota Motor Corp., Nissan Motor Co. Ltd., Fuji Heavy Industries Ltd. – more commonly known by its brand name, Subaru – and certain of their subsidiaries, affiliates and suppliers, in the United States and elsewhere.

According to the charge, Shimasaki participated in the anti-vibration rubber conspiracy from at least as early as January 2001 until at least December 2008.  During that time period, he was employed by Bridgestone as a sales manager, an executive vice president at Bridgestone APM Co., in Findlay, Ohio, and as a general sales manager.  According to the plea agreement, in addition to serving time in prison, Shimasaki has also agreed to pay a $20,000 criminal fine and to cooperate in the department’s investigation.  The plea agreement is subject to court approval.

“The charge today once again demonstrates the Antitrust Division’s vigorous commitment to hold individuals accountable for engaging in anticompetitive conduct,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program.  “The division’s ongoing investigation has resulted in more than two dozen executives serving prison time for their participation in illegal conspiracies involving auto parts.”

Bridgestone manufactures and sells a variety of automotive parts, including anti-vibration rubber parts, which are comprised primarily of rubber and metal, and are installed in suspension systems and engine mounts as well as other parts of an automobile.  They are installed in automobiles for the purpose of reducing road and engine vibration.  On Feb. 13, 2014, the Department of Justice announced that Bridgestone had agreed to plead guilty and to pay a $425 million criminal fine for its role in the conspiracy.  On April 15, 2014, Yasuo Ryuto, Isao Yoshida, two former executives of Bridgestone Corp., and Yoshiyuki Tanaka, a current executive, were indicted  their roles in a conspiracy to fix prices of automotive anti-vibration rubber parts.

To date, 33 individuals have been charged in the government’s ongoing investigation into price fixing and bid rigging in the auto parts industry.  Additionally, 26 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of more than $2.29 billion in fines.

Shimasaki is charged with price fixing and bid rigging 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.

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 each of 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 Cleveland Field Office, with the assistance of the FBI headquarters’ International Corruption Unit and the U.S. Attorney’s Office for the Northern 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 (888) 647–3258, visit  www.justice.gov/atr/contact/newcase.html or call the FBI’s Cleveland Field Office at (216) 522-1400.

Three Bridgestone Corp. Executives Indicted for Roles in Fixing Prices and Rigging Bids on Auto Parts Installed in U.S. Cars

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A Cleveland federal grand jury returned an indictment against one current executive and two former executives of Bridgestone Corp. for their roles in an international conspiracy to fix prices of automotive anti-vibration rubber parts sold in the United States and elsewhere, the Department of Justice announced today.

The indictment, filed today in the U.S. District Court for the Northern District of Ohio in Toledo, charges Yoshiyuki Tanaka, Yasuo Ryuto and Isao Yoshida, all Japanese nationals, with participating in a conspiracy to suppress and eliminate competition in the automotive parts industry by agreeing to allocate sales of, to rig bids for, and to fix, raise and maintain the prices of anti-vibration rubber parts sold to Toyota Motor Corp., Nissan Motor Corp., Suzuki Motor Corp., Fuji Heavy Industries Ltd. – more commonly known by its brand name, Subaru – and certain of their subsidiaries, affiliates and suppliers, in the United States and elsewhere.

“Today’s indictment again demonstrates that antitrust violations are not just corporate offenses but also crimes by individuals,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program.    “The division will continue to vigorously prosecute executives who circumvent the law in order to maximize profits by harming consumers.”

Tanaka was employed by Bridgestone in various positions involving anti-vibration rubber parts sales, including manager at Bridgestone and executive vice-president at Bridgestone’s U.S. subsidiary Bridgestone APM Co., from approximately 1991 through at least February 2011.    He is currently manager of the anti-vibration rubber original equipment international planning section.    Ryuto was employed by Bridgestone in various positions involving anti-vibration rubber parts sales, including general manager and director, from approximately 1991 through at least June 2008; he is no longer employed by the company.    Yoshida was employed by Bridgestone in various positions involving anti-vibration rubber parts sales, including manager and general manager, from approximately 1997 through at least September 2008 ; he is no longer employed by the company.

The indictment alleges that Tanaka, Ryuto, Yoshida and their co-conspirators conducted meetings and communications in Japan to reach collusive agreements regarding the sale of automotive anti-vibration rubber products to automakers in the United States and elsewhere.    The indictment alleges that the conspiracy involved agreements affecting the Tacoma, Camry, Tundra, Sequoia, Corolla, Sienna, Venza and Highlander.    According to the indictment, Tanaka participated in the conspiracy from at least as early as January 2004 until at least June 2008; Ryuto participated in the conspiracy from at least as early as April 2001 until at least May 29, 2008; and Yoshida participated in the conspiracy from at least as early as January 2001 until at least July 2008.

Bridgestone manufactures and sells a variety of automotive parts, including anti-vibration rubber parts, which are comprised primarily of rubber and metal, and are installed in suspension systems and engine mounts as well as other parts of an automobile.    They are installed in automobiles for the purpose of reducing road and engine vibration.    On Feb. 13, 2014, Bridgestone agreed to plead guilty and to pay a $425 million criminal fine for its role in the conspiracy.

To date, 32 individuals have been charged in the government’s ongoing investigation into price fixing and bid rigging in the auto parts industry.    Additionally, 26 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of more than $2.29 billion in fines.

Each of the individuals is charged with price fixing and bid rigging 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.

Today’s charges are 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 each of the Antitrust Division’s criminal enforcement sections and the FBI.    These cases were brought by the Antitrust Division’s Chicago Office and the FBI’s Cleveland Field Office, with the assistance of the FBI headquarters’ International Corruption Unit and the U.S. Attorney’s Office for the Northern 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 888-647-3258, visit  www.justice.gov/atr/contact/newcase.html or call the FBI’s Cleveland Field Office at 216-522-1400.

FORMER PRESIDENT AND VICE PRESIDENT OF DIAMOND ELECTRIC AGREE TO PLEAD GUILTY TO PARTICIPATING IN AUTO PARTS PRICE-FIXING CONSPIRACY

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WASHINGTON — The former president and vice president of Osaka,  Japan-based Diamond Electric Mfg. Co. Ltd. have agreed to plead guilty for  their participation in a global conspiracy to fix prices of ignition coils  installed in cars sold in the United States and elsewhere, the Department of Justice  announced today.  Ignition coils are part  of a car’s fuel ignition system and release electric energy suddenly to ignite  a fuel mixture.

Separate  felony charges were filed today in U.S. District Court for the Eastern District  of Michigan in Detroit against Shigehiko Ikenaga and Tatsuo Ikenaga.  According to court documents, from at least as  early as July 2003 until at least February 2010, the former executives participated  in a conspiracy to rig bids for, and to fix, stabilize and maintain the prices  of ignition coils sold to automotive manufacturers for installation in vehicles  manufactured in the United States and elsewhere.  The automotive manufacturers included Ford  Motor Co., Toyota Motor Corp. and Fuji Heavy Industries Ltd. – more commonly  known by its brand name, Subaru – and certain of their subsidiaries.

Shigehiko  Ikenaga, president of Diamond Electric during the relevant period, agreed to  serve 16 months in a U.S. prison.  Tatsuo  Ikenaga, Diamond Electric’s managing director, and then vice president  beginning in 2008, agreed to serve 13 months in a U.S. prison.  Tatsuo Ikenaga also simultaneously served as president  of Diamond Electric’s U.S. subsidiary during the relevant period.  Additionally, the former executives have each  agreed to pay a $5,000 criminal fine and to cooperate with the department’s  ongoing investigation.  Each of the  Ikenaga’s plea agreements is subject to court approval.  On Sept. 10, 2013, Diamond Electric pleaded  guilty for its involvement in the conspiracy and was fined $19 million.

“The two former executives charged  today once again demonstrate the Antitrust Division’s vigorous commitment to  hold individuals accountable for engaging in anticompetitive conduct,” said  Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s  criminal enforcement program.  “The division’s  ongoing investigation has resulted in more than two dozen executives serving  prison time for their participation in illegal, auto parts conspiracies.”

Diamond  Electric is a manufacturer of ignition coils and was engaged in the sale of  ignition coils in the United States and elsewhere. According to the charges, the  Diamond Electric executives and their co-conspirators carried out the  conspiracy by, among other things, agreeing during meetings and communications  to coordinate bids submitted to automobile manufacturers.

Each  executive is charged with price fixing and bid rigging 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, 28 individuals and 24 companies have been charged in the  government’s ongoing investigation into price fixing and bid rigging in the  auto parts industry.

Today’s charges  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 pleas are the result of the National  Criminal Enforcement Section with the assistance of the Detroit Field Office of  the FBI.  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 Detroit Field Office of the FBI at 313-965-2323.

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Toyo Tire & Rubber Co. Ltd. Agrees to Plead Guilty to Price Fixing on Automobile Parts Installed in U.S. Cars;

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Osaka, Japan-based Toyo Tire & Rubber Co. Ltd. has agreed to plead guilty and to pay a $120 million criminal fine for its role in two separate conspiracies to fix the prices of automotive components involving anti-vibration rubber and driveshaft parts installed in cars sold in the United States and elsewhere, the Department of Justice announced today.

According to a two-count felony charge filed today in U.S. District Court for the Northern District of Ohio in Toledo, Toyo engaged in a conspiracy to allocate sales of, to rig bids for, and to fix the prices of automotive anti-vibration rubber parts it sold to Toyota Motor Corp., Nissan Motor Corp., Fuji Heavy Industries Ltd. – more commonly known by its brand name, Subaru – and certain of their subsidiaries, affiliates and suppliers, in the United States and elsewhere.  According to the charge, Toyo and its co-conspirators carried out the anti-vibration rubber parts conspiracy from as early as March 1996 until at least May 2012.

In addition, according to the charge, Toyo engaged in a separate conspiracy to allocate sales of, and to fix, raise and maintain the prices of automotive constant-velocity-joint boots it sold to U.S. subsidiaries of GKN plc, a British automotive parts supplier . According to the charge, Toyo and its co-conspirators carried out the constant-velocity-joint boots conspiracy from as early as January 2006 until as late as September 2010.

Toyo, which has subsidiaries based in Franklin, Ky., and White, Ga., has agreed to cooperate with the department’s ongoing investigation.  The plea agreement is subject to court approval.

“Today’s charge is the latest step in the Antitrust Division’s effort to hold automobile part suppliers accountable for their illegal and collusive conduct,” said Renata B. Hesse, Deputy Assistant Attorney General for the Department of Justice’s Antitrust Division.  “The division continues to vigorously prosecute companies and individuals that seek to maximize their profits through illegal and anticompetitive means.”

Automotive anti-vibration rubber parts are comprised primarily of rubber and metal, and include engine mounts and suspension bushings.  They are installed in automobiles for the purpose of reducing road and engine vibration.  Automotive constant-velocity-joint boots are composed of rubber or plastic, and are used to cover the constant-velocity-joints of an automobile to protect the joints from contaminants.

The department said the company and its co-conspirators carried out the conspiracies through meetings and conversations, discussed and agreed upon bids, price quotations and price adjustments, and agreed to allocate among the companies certain sales of the anti-vibration rubber and  constant-velocity-joint boots  parts sold to automobile and component manufacturers.

Including Toyo, 22 companies and 26 executives have been charged in the Justice Department’s ongoing investigation into the automotive parts industry.  All 22 companies have either pleaded guilty or have agreed to plead guilty and have agreed to pay more than $1.8 billion in criminal fines.  Of the 26 executives, 20 have been sentenced to serve time in U.S. prisons or have entered into plea agreements calling for significant prison sentences.

Toyo is charged with price fixing in violation of the Sherman Act, which carries a maximum penalty 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.

The charges are 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 each of the Antitrust Division’s criminal enforcement sections and the FBI.  Today’s charges were brought by the Antitrust Division’s Chicago Office and the FBI’s Cleveland Field Office, with the assistance of the FBI headquarters’ International Corruption Unit and the U.S. Attorney’s Office for the Northern District of Ohio.  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 FBI’s Cleveland Field Office at 216-522-1400.

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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NINE AUTOMOBILE PARTS MANUFACTURERS AND TWO EXECUTIVES AGREE TO PLEAD GUILTY TO FIXING PRICES ON AUTOMOBILE PARTS SOLD TO U.S. CAR MANUFACTURERS AND INSTALLED IN U.S. CARS

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WASHINGTON — Nine Japan-based companies and two executives have agreed to  plead guilty and to pay a total of more than $740 million in criminal fines for  their roles in separate conspiracies to fix the prices of more than 30 different  products sold to U.S. car manufacturers and installed in cars sold in the  United States and elsewhere, the Department of Justice announced today.  The department said that price-fixed automobile  parts were sold to Chrysler, Ford and General Motors, as well as to the  U.S. subsidiaries of Honda, Mazda, Mitsubishi, Nissan, Toyota and Fuji Heavy  Industries–more commonly known by its brand name, Subaru.

“These international price-fixing conspiracies affected more  than $5 billion in automobile parts sold to U.S. car manufacturers, and more  than 25 million cars purchased by American consumers were affected by the  illegal conduct,” said Attorney General Eric Holder.  “The Department of Justice will continue to  crack down on cartel behavior that causes American consumers and businesses to  pay higher prices for the products and services they rely upon in their  everyday lives.”

“Some of the price-fixing conspiracies  lasted for a decade or longer, and many car models were fitted with multiple  parts that were fixed by the auto parts suppliers,” said Scott D. Hammond, Deputy  Assistant Attorney General of the Antitrust Division’s criminal enforcement  program.  “The Antitrust Division has  worked hand in hand with its international competition colleagues who have  provided invaluable assistance to the Justice Department in breaking up these worldwide  price-fixing cartels.”

“Today’s  charges should send a message to companies who believe they don’t need to  follow the rules,” said Ronald Hosko, Assistant Director of the FBI’s Criminal  Division.  “If you violate the laws of  this country, the FBI will investigate and put a stop to the threat you pose to  our commercial system.  The integrity of  our markets is a part of the foundation of a free society.”

Including those announced today, 20 companies and 21 executives have been charged in the Antitrust Division’s  ongoing investigation into price fixing and bid rigging in the auto parts  industry.  All 20 companies have either  pleaded guilty or have agreed to plead guilty and have agreed to pay more than $1.6  billion in criminal fines.  Seventeen of  the 21 executives have been sentenced to serve time in U.S. prisons or have  entered into plea agreements calling for significant prison sentences.

Each of the companies and executives  charged today has agreed to cooperate with the department’s ongoing antitrust investigation.  The plea agreements are subject to court approval.  The companies’ and executives’ agreed-upon fines and sentences are:

  • Hitachi Automotive Systems Ltd. to pay a $195 million criminal fine;
  • Jtekt Corporation to pay a $103.27 million criminal fine;
  • Mitsuba Corporation to pay a $135 million criminal fine;
  • Mitsubishi Electric Corporation (MELCO) to pay a $190 million criminal fine;
  • Mitsubishi Heavy Industries Ltd. to pay a $14.5 million criminal fine;
  • NSK Ltd. to pay a $68.2 million criminal fine;
  • T.RAD Co. Ltd. to pay a $13.75 criminal fine;
  • Valeo Japan Co. Ltd. to pay a $13.6 million criminal fine;
  • Yamashita Rubber Co. Ltd. to pay a $11 million criminal fine;
  • Tetsuya Kunida, a Japanese citizen and former executive of a U.S. subsidiary of a Japan-based automotive       anti-vibration rubber products supplier to serve 12 months and one day in a U.S. prison, and to pay a $20,000 criminal fine; and
  • Gary Walker, a U.S. citizen and former executive of a U.S. subsidiary of a Japan-based automotive products supplier to serve 14 months in a U.S. prison, and to pay a $20,000 criminal fine.

MELCO and Hitachi conspired with each other and other  co-conspirator firms not charged today on sales of certain auto parts,  including starter motors, alternators, and ignition coils, the department said. Mitsuba and Mitsubishi Electric conspired together and with other  co-conspirators not charged today on certain sales of starter motors.  Each of the other companies charged today  colluded with other unnamed co-conspirators.

Generally, the companies, executives and co-conspirators  engaged in the various price-fixing schemes by attending meetings and  communicating by telephone in the United States and Japan to reach collusive  agreements to rig bids, set prices and allocate the supply of auto parts sold  to the car manufacturers.  They took  measures to keep their conduct secret by using code names and meeting in remote  locations.  Those charged also had  further communications to monitor and enforce the collusive agreements.

The multiple conspiracies also harmed U.S. automobile plants  in 14 states: Alabama; California; Georgia; Illinois; Indiana; Kansas;  Kentucky; Michigan; Mississippi; Missouri; Ohio; Tennessee; Texas and  Wisconsin, the department said.

The department has coordinated  its investigation with the Japanese Fair Trade Commission, the European  Commission, Canadian Competition Bureau, Korean Fair Trade Commission, Mexican Federal  Economic Competition Commission and Australian Competition and Consumer  Commission.

The following charges were filed today in U.S. District Court  for the Eastern District of Michigan in Detroit:

Hitachi Automotive Systems Ltd.

According to a one-count  felony charge, Hitachi and co-conspirators engaged in a conspiracy, by agreeing  during meetings and conversations, to rig bids for, and to fix, stabilize and  maintain the prices of auto parts it sold to Ford, General Motors, Honda,  Nissan and Toyota, in the United States and elsewhere. The affected auto  parts include starter motors, alternators, air flow meters, valve timing  control devices, fuel injection systems, electronic throttle bodies, ignition  coils, inverters and motor generators. According to the charge, Hitachi and its  co-conspirators carried out the conspiracy from at least as early as January 2000  until at least February 2010.

Hitachi manufactures and sells auto parts to automobile manufacturers  throughout the world. The affected auto parts perform an array of  functions in automobile engines, from regulating air and fuel flow to starting  the engine to controlling the timing of engine valves.

Mitsuba  Corporation

According to a two-count felony charge,  Mitsuba and co-conspirators engaged in a conspiracy, by agreeing during  meetings and conversations, to rig bids for, and to fix, stabilize and maintain  the prices of windshield washer systems and components, windshield wiper  systems and components, starter motors, power window motors, and fan motors it  sold to Chrysler, Honda, Subaru, Nissan and  Toyota in the United States and elsewhere. According to the charge,  Mitsuba and its co-conspirators carried out the conspiracy from January 2000  until February 2010.  Mitsuba also agreed  to plead guilty to one count of obstruction of justice, because of the  company’s efforts to destroy evidence ordered by a high-level U.S.-based  executive after learning of the U.S. investigation of collusion in the auto  parts industry.

Mitsuba manufactures and sells numerous automotive parts to automobile  manufacturers throughout the world.  The  affected auto parts perform an array of functions in automobiles.  Windshield washer and wiper systems include a  number of components and are designed to clear water or snow from vehicle  windows.  Starter motors are small  electric motors used in starting internal combustion engines.  Power window motors are small electric motors  used to raise and lower vehicle windows.   Fan motors are small electric motors used to turn radiator cooling fans.

Mitsubishi  Electric Corporation (MELCO)

According to a one-count felony charge, MELCO and co-conspirators engaged  in a conspiracy, by agreeing during meetings and conversations, to rig bids  for, and to fix, stabilize and maintain the prices of automotive parts,  including starter motors, alternators and ignition coils, it sold to Chrysler, Ford,  General Motors, Honda, Fuji Heavy Industries Ltd. (Subaru), Nissan, and certain  of their subsidiaries in the United States and elsewhere. According to  the charge, MELCO and its co-conspirators carried out the conspiracy from at  least as early as January 2000 until at least February 2010.

MELCO manufactures and sells automotive parts, including starter  motors, alternators, and ignition coils. Starter motors are small  electric motors used in starting internal combustion engines. Alternators  generate an electric current while the engine is in operation.  Ignition coils are part of the fuel ignition  system and release electric energy suddenly to ignite a fuel mixture.

Mitsubishi  Heavy Industries Ltd.

According to a one-count felony charge, Mitsubishi Heavy Industries  Ltd. (MHI) and co-conspirators engaged in a conspiracy, by agreeing during  meetings and conversations, to rig bids for, and to fix, stabilize and maintain  the prices of compressors and condensers it sold to General Motors and  Mitsubishi Motors North America in the United States and elsewhere.  According to the charge, MHI and its co-conspirators carried out the conspiracy  from at least as early as January 2001 until at least February 2010.

MHI manufactures and sells compressors and condensers. A  compressor produces and circulates highly pressurized refrigerant gas  throughout the car air conditioning system. A condenser cools the engine  by condensing the refrigerant gas into liquid and releasing heat.

T.RAD  Co. Ltd.

According to a  one-count felony charge, T.RAD Co. Ltd. and co-conspirators engaged in a  conspiracy, by agreeing during meetings and conversations, to rig bids for, and  to fix, stabilize and maintain the prices of radiators it sold to Toyota and  Honda and the prices of automatic transmission fluid warmers (ATF warmers) sold  to Toyota in the United States and elsewhere. According to the charge, T.RAD  and its co-conspirators carried out the conspiracy from November 2002 until  February 2010.

T.RAD manufactures and sells heat exchangers, including radiators and  ATF Warmers. Radiators are devices  located in the engine compartment of a vehicle that cool the engine. ATF warmers are devices located in the engine compartment of  a vehicle that warm the automatic transmission fluid.

Valeo  Japan Co. Ltd.

According to a  one-count felony charge, Valeo Japan Co. Ltd. and co-conspirators engaged in a  conspiracy, by agreeing during meetings and conversations, to allocate the  supply of, rig bids for, and to fix, stabilize and maintain the prices of air  conditioning systems it sold to Nissan North America Inc., Suzuki Motor  Corporation and Subaru, in the United States and elsewhere.  According to the charge, Valeo and its  co-conspirators carried out the conspiracy from April 2006 until February 2010.

Valeo was engaged in the manufacture and sale of automotive air conditioning  systems, which are systems that cool the interior environment of a  vehicle. Air conditioning systems, whether sold together or separately,  are defined 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.

Gary  Walker

According to a  one-count felony charge, Gary Walker, a U.S. citizen and former executive of a  U.S. subsidiary of a Japan-based automotive products supplier, engaged in a  conspiracy to rig bids for, and to fix, stabilize and maintain the prices of  seatbelts sold to Honda, Mazda, Nissan, Subaru and Toyota in the United States  and elsewhere. According to the charge, Walker and his co-conspirators  carried out the conspiracy from at least Jan. 1, 2003 until at least February  2010.

The  following charges were filed today in U.S. District Court for the Southern  District of Ohio in Cincinnati:

Jtekt  Corporation

According to  a two-count felony charge, Jtekt and co-conspirators engaged in a  conspiracy, by agreeing during meetings and conversations, to allocate  markets, to rig bids for, and to fix, stabilize and maintain the prices of bearings it  sold to Toyota and electric powered steering assemblies it sold to Nissan,  in the United States and elsewhere. According to the charge, Jtekt and its  co-conspirators carried out the bearings conspiracy from 2000 until July 2011  and the steering assemblies conspiracy from 2005 until October 2011.

Jtekt manufactures and sells bearings and steering assemblies.  Bearings are widely used in industry in numerous  applications for many products. Bearings reduce friction and help  components to roll smoothly past on another.   Electric powered steering assemblies provide electric power to  help the driver more easily steer the automobile. Electric powered  steering assemblies link the steering wheel to the tires, and include the  column, intermediate shaft and electronic control unit, among other parts, but  do not include the steering wheel or tires.

NSK  Ltd.

According to a one-count felony  charge, NSK and co-conspirators engaged in a conspiracy, by agreeing during  meetings and conversations, to allocate markets, to rig bids for, and to  fix, stabilize and maintain the prices of bearings it sold to Toyota, in the United States and  elsewhere.  NSK manufactures and sells bearings.  According to the charge, NSK and its  co-conspirators carried out the conspiracy from 2000 until July 2011.

The  following charges were filed today in U.S. District Court for the Northern  District of Ohio in Toledo:

Yamashita  Rubber Co. Ltd.

According to a one-count felony charge, Yamashita Rubber Co. Ltd. and  co-conspirators engaged in a conspiracy, by agreeing during meetings and  conversations, to rig bids for, and to fix, raise, and maintain the prices of  automotive anti-vibration rubber products it sold in the United States and  elsewhere to Honda Motor Co. Ltd., American Honda Motor Company Inc. and Suzuki  Motor Corporation.  According to the  charge, Yamashita Rubber Co. and its co-conspirators carried out the  conspiracy from at least April 2003 until May 2012.

Automotive anti-vibration rubber products are comprised primarily of  rubber and metal, and are installed in automobiles to reduce engine and road  vibration.

Tetsuya  Kunida

According to a  one-count felony charge, Tetsuya Kunida, a former executive of a U.S.  subsidiary of a Japan-based automotive anti-vibration rubber products supplier,  engaged in a conspiracy, by agreeing during meetings and conversations, to rig  bids for, and to fix, raise, and maintain the prices of automotive  anti-vibration rubber products.  The  conspiracy affected sales of automotive anti-vibration rubber products to  Toyota Motor Corporation and other automakers in the United States and  elsewhere.  ccording to the charge,  Kunida and his co-conspirators carried out the conspiracy from at least  November 2001 until May 2012.

DENSO Corporation, Nippon Seiki Ltd., Tokai Rika Co. Ltd.,  Furukawa Electric Co. Ltd, Yazaki Corp., G.S. Electech Inc., Fujikura Ltd.,  Autoliv Inc., TRW Deutschland Holding GmbH, Diamond Electric Mfg. Co. Ltd., and  Panasonic Corporation have already pleaded guilty. Fifteen individuals  have been sentenced to pay criminal fines and to serve prison sentences ranging  from a year and a day to two years each.

The companies and individuals are charged with price fixing  in violation of the Sherman Act, which carries maximum penalties of a $100  million criminal fine for corporations and a $1 million criminal fine and 10  years in prison for individuals. 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.  Additionally, Mitsuba was also  charged with obstruction of justice, which carries a maximum penalty of a $500,000  criminal fine.

The charges are 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 each of the Antitrust Division’s criminal enforcement sections and  the FBI. Today’s charges were brought by the Antitrust Division’s Chicago  Office, New York Office, the National Criminal Enforcement Section, and the  FBI’s Cincinnati, Cleveland, Detroit, New York and Washington Field Offices,  with the assistance of 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 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.

Nine Automobile Parts Manufacturers and Two Executives Agree to Plead Guilty to Fixing Prices on Automobile Parts Sold to U.S. Car Manufacturers and Installed in U.S. Cars Companies Agree to Pay a Total of More Than $740 Million in Criminal Fines

Posted on by
Department of Justice
Office of Public Affairs
FOR IMMEDIATE RELEASE
Thursday, September 26, 2013
Nine Automobile Parts Manufacturers and Two Executives Agree to Plead Guilty to Fixing Prices on Automobile Parts Sold to U.S. Car Manufacturers and Installed in U.S. Cars
Companies Agree to Pay a Total of More Than $740 Million in Criminal Fines

Nine Japan-based companies and two executives have agreed to plead guilty and to pay a total of more than $740 million in criminal fines for their roles in separate conspiracies to fix the prices of more than 30 different products sold to U.S. car manufacturers and installed in cars sold in the United States and elsewhere, the Department of Justice announced today.  The department said that price-fixed automobile parts were sold to Chrysler, Ford and General Motors, as well as to the U.S. subsidiaries of Honda, Mazda, Mitsubishi, Nissan, Toyota and Fuji Heavy Industries–more commonly known by its brand name, Subaru.

“These international price-fixing conspiracies affected more than $5 billion in automobile parts sold to U.S. car manufacturers, and more than 25 million cars purchased by American consumers were affected by the illegal conduct,” said Attorney General Eric Holder.  “The Department of Justice will continue to crack down on cartel behavior that causes American consumers and businesses to pay higher prices for the products and services they rely upon in their everyday lives.”

“Some of the price-fixing conspiracies lasted for a decade or longer, and many car models were fitted with multiple parts that were fixed by the auto parts suppliers,” said Scott D. Hammond, Deputy Assistant Attorney General of the Antitrust Division’s criminal enforcement program.  “The Antitrust Division has worked hand in hand with its international competition colleagues who have provided invaluable assistance to the Justice Department in breaking up these worldwide price-fixing cartels.”

“Today’s charges should send a message to companies who believe they don’t need to follow the rules,” said Ronald Hosko, Assistant Director of the FBI’s Criminal Division.  “If you violate the laws of this country, the FBI will investigate and put a stop to the threat you pose to our commercial system.  The integrity of our markets is a part of the foundation of a free society.”

Including those announced today, 20 companies and 21 executives have been charged in the Antitrust Division’s ongoing investigation into price fixing and bid rigging in the auto parts industry.  All 20 companies have either pleaded guilty or have agreed to plead guilty and have agreed to pay more than $1.6 billion in criminal fines.  Seventeen of the 21 executives have been sentenced to serve time in U.S. prisons or have entered into plea agreements calling for significant prison sentences.

Each of the companies and executives charged today has agreed to cooperate with the department’s ongoing antitrust investigation.  The plea agreements are subject to court approval. The companies’ and executives’ agreed-upon fines and sentences are:

• Hitachi Automotive Systems Ltd. to pay a $195 million criminal fine;
• Jtekt Corporation to pay a $103.27 million criminal fine;
• Mitsuba Corporation to pay a $135 million criminal fine;
• Mitsubishi Electric Corporation (MELCO) to pay a $190 million criminal fine;
• Mitsubishi Heavy Industries Ltd. to pay a $14.5 million criminal fine;
• NSK Ltd. to pay a $68.2 million criminal fine;
• T.RAD Co. Ltd. to pay a $13.75 criminal fine;
• Valeo Japan Co. Ltd. to pay a $13.6 million criminal fine;
• Yamashita Rubber Co. Ltd. to pay a $11 million criminal fine;
• Tetsuya Kunida, a Japanese citizen and former executive of a U.S. subsidiary of a Japan-based automotive anti-vibration rubber products supplier to serve 12 months and one day in a U.S. prison, and to pay a $20,000 criminal fine; and
• Gary Walker, a U.S. citizen and former executive of a U.S. subsidiary of a Japan-based automotive products supplier to serve 14 months in a U.S. prison, and to pay a $20,000 criminal fine.

MELCO and Hitachi conspired with each other and other co-conspirator firms not charged today on sales of certain auto parts, including starter motors, alternators, and ignition coils, the department said.  Mitsuba and Mitsubishi Electric conspired together and with other co-conspirators not charged today on certain sales of starter motors.  Each of the other companies charged today colluded with other unnamed co-conspirators.

Generally, the companies, executives and co-conspirators engaged in the various price-fixing schemes by attending meetings and communicating by telephone in the United States and Japan to reach collusive agreements to rig bids, set prices and allocate the supply of auto parts sold to the car manufacturers.  They took measures to keep their conduct secret by using code names and meeting in remote locations.  Those charged also had further communications to monitor and enforce the collusive agreements.

The multiple conspiracies also harmed U.S. automobile plants in 14 states: Alabama; California; Georgia; Illinois; Indiana; Kansas; Kentucky; Michigan; Mississippi; Missouri; Ohio; Tennessee; Texas and Wisconsin, the department said.

The department has coordinated its investigation with the Japanese Fair Trade Commission, the European Commission, Canadian Competition Bureau, Korean Fair Trade Commission, Mexican Federal Economic Competition Commission and Australian Competition and Consumer Commission.

The following charges were filed today in U.S. District Court for the Eastern District of Michigan in Detroit:

Hitachi Automotive Systems Ltd.

According to a one-count felony charge, Hitachi and co-conspirators engaged in a conspiracy, by agreeing during meetings and conversations, to rig bids for, and to fix, stabilize and maintain the prices of auto parts it sold to Ford, General Motors, Honda, Nissan and Toyota, in the United States and elsewhere.  The affected auto parts include starter motors, alternators, air flow meters, valve timing control devices, fuel injection systems, electronic throttle bodies, ignition coils, inverters and motor generators. According to the charge, Hitachi and its co-conspirators carried out the conspiracy from at least as early as January 2000 until at least February 2010.

Hitachi manufactures and sells auto parts to automobile manufacturers throughout the world.  The affected auto parts perform an array of functions in automobile engines, from regulating air and fuel flow to starting the engine to controlling the timing of engine valves.

Mitsuba Corporation

According to a two-count felony charge, Mitsuba and co-conspirators engaged in a conspiracy, by agreeing during meetings and conversations, to rig bids for, and to fix, stabilize and maintain the prices of windshield washer systems and components, windshield wiper systems and components, starter motors, power window motors, and fan motors it sold to Chrysler, Honda, Subaru, Nissan and Toyota in the United States and elsewhere.  According to the charge, Mitsuba and its co-conspirators carried out the conspiracy from January 2000 until February 2010.  Mitsuba also agreed to plead guilty to one count of obstruction of justice, because of the company’s efforts to destroy evidence ordered by a high-level U.S.-based executive after learning of the U.S. investigation of collusion in the auto parts industry.

Mitsuba manufactures and sells numerous automotive parts to automobile manufacturers throughout the world.  The affected auto parts perform an array of functions in automobiles.  Windshield washer and wiper systems include a number of components and are designed to clear water or snow from vehicle windows.  Starter motors are small electric motors used in starting internal combustion engines.  Power window motors are small electric motors used to raise and lower vehicle windows.  Fan motors are small electric motors used to turn radiator cooling fans.

Mitsubishi Electric Corporation (MELCO)

According to a one-count felony charge, MELCO and co-conspirators engaged in a conspiracy, by agreeing during meetings and conversations, to rig bids for, and to fix, stabilize and maintain the prices of automotive parts, including starter motors, alternators and ignition coils, it sold to Chrysler, Ford, General Motors, Honda, Fuji Heavy Industries Ltd. (Subaru), Nissan, and certain of their subsidiaries in the United States and elsewhere.  According to the charge, MELCO and its co-conspirators carried out the conspiracy from at least as early as January 2000 until at least February 2010.

MELCO manufactures and sells automotive parts, including starter motors, alternators, and ignition coils.  Starter motors are small electric motors used in starting internal combustion engines.  Alternators generate an electric current while the engine is in operation.  Ignition coils are part of the fuel ignition system and release electric energy suddenly to ignite a fuel mixture.

Mitsubishi Heavy Industries Ltd.

According to a one-count felony charge, Mitsubishi Heavy Industries Ltd. (MHI) and co-conspirators engaged in a conspiracy, by agreeing during meetings and conversations, to rig bids for, and to fix, stabilize and maintain the prices of compressors and condensers it sold to General Motors and Mitsubishi Motors North America in the United States and elsewhere.  According to the charge, MHI and its co-conspirators carried out the conspiracy from at least as early as January 2001 until at least February 2010.

MHI manufactures and sells compressors and condensers.  A compressor produces and circulates highly pressurized refrigerant gas throughout the car air conditioning system.  A condenser cools the engine by condensing the refrigerant gas into liquid and releasing heat.

T.RAD Co. Ltd.

According to a one-count felony charge, T.RAD Co. Ltd. and co-conspirators engaged in a conspiracy, by agreeing during meetings and conversations, to rig bids for, and to fix, stabilize and maintain the prices of radiators it sold to Toyota and Honda and the prices of automatic transmission fluid warmers (ATF warmers) sold to Toyota in the United States and elsewhere. According to the charge, T.RAD and its co-conspirators carried out the conspiracy from November 2002 until February 2010.

T.RAD manufactures and sells heat exchangers, including radiators and ATF Warmers.  Radiators are devices located in the engine compartment of a vehicle that cool the engine.  ATF warmers are devices located in the engine compartment of a vehicle that warm the automatic transmission fluid.

Valeo Japan Co. Ltd.

According to a one-count felony charge, Valeo Japan Co. Ltd. and co-conspirators engaged in a conspiracy, by agreeing during meetings and conversations, to allocate the supply of, rig bids for, and to fix, stabilize and maintain the prices of air conditioning systems it sold to Nissan North America Inc., Suzuki Motor Corporation and Subaru, in the United States and elsewhere.  According to the charge, Valeo and its co-conspirators carried out the conspiracy from April 2006 until February 2010.

Valeo was engaged in the manufacture and sale of automotive air conditioning systems, which are systems that cool the interior environment of a vehicle.  Air conditioning systems, whether sold together or separately, are defined 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.

Gary Walker

According to a one-count felony charge, Gary Walker, a U.S. citizen and former executive of a U.S. subsidiary of a Japan-based automotive products supplier, engaged in a conspiracy to rig bids for, and to fix, stabilize and maintain the prices of seatbelts sold to Honda, Mazda, Nissan, Subaru and Toyota in the United States and elsewhere.  According to the charge, Walker and his co-conspirators carried out the conspiracy from at least Jan. 1, 2003 until at least February 2010.

The following charges were filed today in U.S. District Court for the Southern District of Ohio in Cincinnati:

Jtekt Corporation

According to a two-count felony charge, Jtekt and co-conspirators engaged in a conspiracy, by agreeing during meetings and conversations, to allocate markets, to rig bids for, and to fix, stabilize and maintain the prices of bearings it sold to Toyota and electric powered steering assemblies it sold to Nissan, in the United States and elsewhere. According to the charge, Jtekt and its co-conspirators carried out the bearings conspiracy from 2000 until July 2011 and the steering assemblies conspiracy from 2005 until October 2011.

Jtekt manufactures and sells bearings and steering assemblies.  Bearings are widely used in industry in numerous applications for many products.  Bearings reduce friction and help components to roll smoothly past on another.  Electric powered steering assemblies provide electric power to help the driver more easily steer the automobile.  Electric powered steering assemblies link the steering wheel to the tires, and include the column, intermediate shaft and electronic control unit, among other parts, but do not include the steering wheel or tires.

NSK Ltd.

According to a one-count felony charge, NSK and co-conspirators engaged in a conspiracy, by agreeing during meetings and conversations, to allocate markets, to rig bids for, and to fix, stabilize and maintain the prices of bearings it sold to Toyota, in the United States and elsewhere.  NSK manufactures and sells bearings.  According to the charge, NSK and its co-conspirators carried out the conspiracy from 2000 until July 2011.

The following charges were filed today in U.S. District Court for the Northern District of Ohio in Toledo:

Yamashita Rubber Co. Ltd.

According to a one-count felony charge, Yamashita Rubber Co. Ltd. and co-conspirators engaged in a conspiracy, by agreeing during meetings and conversations, to rig bids for, and to fix, raise, and maintain the prices of automotive anti-vibration rubber products it sold in the United States and elsewhere to Honda Motor Co. Ltd., American Honda Motor Company Inc. and Suzuki Motor Corporation.  According to the charge, Yamashita Rubber Co. and its co-conspirators carried out the conspiracy from at least April 2003 until May 2012.

Automotive anti-vibration rubber products are comprised primarily of rubber and metal, and are installed in automobiles to reduce engine and road vibration.

Tetsuya Kunida

According to a one-count felony charge, Tetsuya Kunida, a former executive of a U.S. subsidiary of a Japan-based automotive anti-vibration rubber products supplier, engaged in a conspiracy, by agreeing during meetings and conversations, to rig bids for, and to fix, raise, and maintain the prices of automotive anti-vibration rubber products.  The conspiracy affected sales of automotive anti-vibration rubber products to Toyota Motor Corporation and other automakers in the United States and elsewhere.  ccording to the charge, Kunida and his co-conspirators carried out the conspiracy from at least November 2001 until May 2012.

DENSO Corporation, Nippon Seiki Ltd., Tokai Rika Co. Ltd., Furukawa Electric Co. Ltd, Yazaki Corp., G.S. Electech Inc., Fujikura Ltd., Autoliv Inc., TRW Deutschland Holding GmbH, Diamond Electric Mfg. Co. Ltd., and Panasonic Corporation have already pleaded guilty.  Fifteen individuals have been sentenced to pay criminal fines and to serve prison sentences ranging from a year and a day to two years each.

The companies and individuals are charged with price fixing in violation of the Sherman Act, which carries maximum penalties of a $100 million criminal fine for corporations and a $1 million criminal fine and 10 years in prison for individuals.  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.  Additionally, Mitsuba was also charged with obstruction of justice, which carries a maximum penalty of a $500,000 criminal fine.

The charges are 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 each of the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charges were brought by the Antitrust Division’s Chicago Office, New York Office, the National Criminal Enforcement Section, and the FBI’s Cincinnati, Cleveland, Detroit, New York and Washington Field Offices, with the assistance of the FBI headquarters’ International Corruption Unit.