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Two Executives of Japanese Automotive Parts Manufacturers Indicted for Their Role in a Conspiracy to Fix Prices and Rig Bids

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A Kentucky federal grand jury returned a one-count indictment against two executives of Japanese automotive parts manufacturers for their participation in a conspiracy to fix prices and rig bids of bearings, the Department of Justice announced today.

The indictment, filed late yesterday in the U.S. District Court for the Eastern District of Kentucky in Covington, charges Hiroya Hirose an executive at NSK Ltd., and Masakazu Iwami an executive at Jtekt Corporation, with conspiring to fix the prices of bearings sold to Toyota Motor Corporation and Toyota Motor Engineering & Manufacturing North America Inc. (collectively, “Toyota”) in the United States and elsewhere, beginning at least as early as 2001 and continuing until as late as July 2011.

“The division will continue to pursue executives who violate the antitrust laws,” said Assistant Attorney General Bill Baer for the Antitrust Division.  “American consumers deserve the benefit of free competition between auto parts suppliers.”

Hirose was a group sales manager in NSK’s Mid-Japan Automotive Department Office from at least as early as January 2006 until at least 2009, and a general manager in that office from 2009 until at least 2011.  Iwami was a Section Manager, then General Manager, in Jtekt’s Toyota Branch office from at least as early as 1999 until at least October 2007, and then Vice Branch Manager in that office from October 2007 until at least June 2009.

The indictment alleges, among other things, that Hirose, Iwami, and co-conspirators participated in, and directed, authorized, or consented to the participation of subordinate employees in, meetings, conversations, and communications to discuss the bids and price quotations to be submitted to Toyota in the United States and elsewhere.  Hirose, Iwami, and their co-conspirators submitted bids and price quotations in accordance with the agreements reached at these meetings.

NSK is a corporation organized and existing under the laws of Japan with its principal place of business in Tokyo, Japan.  On Oct. 28, 2013, NSK pleaded guilty and agreed to pay a $68.2 million criminal fine for its role in the conspiracy.  Jtekt is a corporation organized and existing under the laws of Japan with its registered headquarters in Osaka, Japan.  On Dec. 3, 2013, Jtekt pleaded guilty and agreed to pay a $103.27 million criminal fine for its role in the conspiracy.  Both NSK and Jtekt were engaged in the business of manufacturing and selling bearings to Toyota in the United States and elsewhere for installation in vehicles manufactured and sold in the United States and elsewhere.

Including Hirose and Iwami, 46 individuals have been charged in the government’s ongoing investigation into market allocation, price fixing, and bid rigging in the auto parts industry.  Twenty-six of these individuals have pleaded guilty and have been sentenced to serve prison terms ranging from a year and one day to two years.  Additionally, 31 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of now more than $2.4 billion in fines.

Hirose and Iwami are 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.

Yesterday’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 Chicago Office and the FBI’s Cincinnati Field Office.  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.

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

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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.

Panasonic Executive Indicted for Role in Fixing Prices on Automobile Parts Sold to Toyota to Be Installed in U.S. Cars

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A Detroit federal grand jury returned an indictment against a Panasonic Automotive Systems Corporation executive for his role in an international conspiracy to fix prices of switches and steering angle sensors sold to Toyota and installed in U.S. cars, the Department of Justice announced today.

The indictment, filed today in U.S. District Court for the Eastern District of Michigan, in Detroit, charges that Shinichi Kotani, a Japanese national, participated 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, switches and steering angle sensors sold to Toyota Motor Corporation and Toyota Motor Engineering & Manufacturing North America Inc. for installation in vehicles manufactured and sold in the United States and elsewhere.   Kotani is the Director of Global Automotive Marketing and Sales at Panasonic.

Panasonic is an Osaka, Japan-based manufacturer of automotive parts, including steering wheel switches, turn switches, wiper switches, combination switches, and steering angle sensors  .  Panasonic pleaded guilty in August 2013, to its role in the conspiracy and was sentenced to pay a $45.8 million criminal fine.

The indictment alleges, among other things, that from at least as early as January 2004 until at least February 2010, Kotani and his co-conspirators attended meetings to reach collusive agreements to rig bids, allocate the supply and fix the prices of switches and steering angle sensors sold to Toyota.  The indictment alleges that Kotani and his co-conspirators had further communications to monitor and enforce the collusive agreement.

“The Antitrust Division remains vigilant in its ongoing efforts to hold executives accountable when they engage in anticompetitive conduct that harms American consumers,” said Scott D. Hammond, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program.  “As a result of the Antitrust Division’s ongoing investigation into bid rigging and price fixing in the auto parts industry, 19 executives have been charged.”

“I am proud of the hard work done by the FBI agents and the Department of Justice attorneys who worked on this case,” said John Robert Shoup, Acting Special Agent in Charge, FBI Detroit Division.  “The global resources of the FBI are always ready to respond when these complex financial conspiracies threaten our national economy.”

Kotani 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.
Including Kotani, 11 companies and 19 executives have been charged in the Justice Department’s ongoing investigation into the automotive parts industry.  To date, more than $874 million in criminal fines have been imposed and 14 individuals have been sentenced to pay criminal fines and to serve jail sentences ranging from a year and a day to two years each.  One other executive has agreed to serve time in prison and is scheduled to be sentenced on Sept. 25, 2013.

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 National Criminal Enforcement Section and the FBI’s Detroit Field Office, with the assistance of the FBI headquarters’ International Corruption Unit.

Diamond Electric Mfg. Co. Ltd. and an Autoliv Inc. Executive Agree to Plead Guilty to Price Fixing on Automobile Parts Installed in U.S. Cars;

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Osaka, Japan-based Diamond Electric Mfg. Co. Ltd. has agreed to plead guilty and to pay a $19 million criminal fine for its role in a conspiracy to fix prices of ignition coils installed in cars sold in the United States and elsewhere, the Department of Justice announced today. This is the first case in the department’s antitrust investigation involving parts sold directly to an automobile company headquartered in the United States – Ford Motor Co. The department also announced that an Autoliv Inc. executive has agreed to plead guilty for his role in a conspiracy to fix the prices of certain seatbelts sold to Toyota Motor Corp. for installation in cars manufactured and sold in the United States and elsewhere.

Diamond Electric has agreed to cooperate with the department’s ongoing investigation. Takayoshi Matsunaga, a current employee of Autoliv and former vice president of the Toyota Global Business Unit at Autoliv Japan, agreed to serve one year and one day in a U.S. prison, to pay a $20,000 criminal fine and to cooperate with the department’s ongoing investigation. The plea agreements for both Diamond Electric and Matsunaga are subject to court approval.

According to a one-count felony charge filed today in U.S. District Court for the Eastern District of Michigan in Detroit, Diamond Electric engaged in a conspiracy, by agreeing during meetings and conversations, to rig bids for, and to fix, stabilize and maintain the prices of ignition coils it sold to Ford Motor Co., Toyota Motor Corp., Fuji Heavy Industries Ltd. and certain of their subsidiaries, in the United States and elsewhere, on a model-by-model basis. According to the charge, Diamond Electric and its co-conspirators carried out the conspiracy from at least as early as July 2003 until at least February 2010.

“Today’s prosecutions brings the total to 10 companies and 15 executives held accountable for fixing prices on parts used to manufacture cars in the United States,” said Scott D. Hammond, Deputy Assistant Attorney General of the Antitrust Division’s criminal enforcement program.  “The Antitrust Division and its law enforcement partners will protect American businesses and consumers from harmful price-fixing cartels and bring those responsible to justice.”

Diamond Electric manufactures and sells ignition coils.  Ignition coils are part of the fuel ignition system. They are responsible for quickly releasing electricity to the spark plugs for ignition.

According to a one-count felony charge filed today in the U.S. District Court for the Eastern District of Michigan in Detroit, Matsunaga, a Japanese national, engaged in a conspiracy to rig bids for, and to fix, stabilize and maintain the prices of certain seatbelts sold to Toyota in the United States and elsewhere. According to the charge, Matsunaga’s involvement in the conspiracy lasted from on or about May 2008 until at least February 2011.

“Those who engage in price fixing, bid rigging and other fraudulent schemes harm the automotive industry by driving up costs for vehicle makers and buyers,” said Robert D. Foley III, Special Agent in Charge, FBI Detroit Division.  “The FBI is committed to pursuing and prosecuting these individuals for their crimes.”

According to the charge, Matsunaga and his co-conspirators carried out the conspiracy by, among other things, agreeing during meetings and discussions to coordinate bids submitted to Toyota. Matsunaga is the 15th individual to agree to plead guilty in the department’s ongoing antitrust investigation into price fixing and bid rigging in the auto parts industry.

Stockholm-based Autoliv Inc. is a manufacturer of automotive occupant safety systems, including certain seatbelts.  In June 2012, Autoliv agreed to plead guilty and to pay a $14.5 million criminal fine for its role in a conspiracy to fix the prices of certain seatbelts, airbags and steering wheels installed in U.S. cars.

Including Diamond Electric and Matsunaga, 10 companies and 15 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 $828 million in criminal fines. DENSO, Nippon Seiki Ltd., Tokai Rika Co. Ltd., Furukawa Electric Co. Ltd, Yazaki Corp., G.S. Electech Inc., Fujikura Ltd., Autoliv Inc. and TRW Deutschland Holding GmbH have already pleaded guilty.  Additionally, 12 individuals have been sentenced to pay criminal fines and to serve jail sentences ranging from a year and a day to two years each. Two additional executives have agreed to serve time in prison and are currently awaiting sentencing.

Diamond Electric and Matsunaga are charged with price fixing in violation of the Sherman Act, which carries maximum penalties of a $100 million criminal fine for corporations and 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.

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 National Criminal Enforcement Section and the FBI’s Detroit Field Office, with the assistance of the FBI headquarters’ International Corruption Unit.