Tag Archives: Toyota Motor Engineering & Manufacturing North America Inc.

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.

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

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A Detroit federal grand jury returned a two-count indictment against an executive of a Japanese manufacturer of automotive parts for his participation in a conspiracy to fix prices of heater control panels and for obstruction of justice for ordering the destruction of evidence related to the conspiracy, the Department of Justice announced today.

The indictment, filed today in the U.S. District Court for the Eastern District of Michigan, charges Hitoshi Hirano 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 heater control panels sold to Toyota Motor Corp. and Toyota Motor Engineering & Manufacturing North America Inc. (collectively, Toyota) for installation in vehicles manufactured and sold in the United States and elsewhere.    Hirano, who served as an executive managing director at Tokai Rika Co. Ltd., was also charged with knowingly and corruptly persuading, and attempting to persuade, executives of Tokai Rika to destroy documents and delete electronic data that may contain evidence of antitrust crimes in the United States and elsewhere.

“The Antitrust Division will not tolerate executives directing their subordinates to engage in illegal cartels and conspiracies,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program.    “Attempts to then obstruct justice and destroy evidence will give rise to additional charges.”

The indictment alleges, among other things, that from at least as early as October 2003 and continuing until at least February 2010, Hirano and others attended conspiratorial meetings with co-conspirators and reached collusive agreements to rig bids, allocate the supply and fix the prices for heater control panels sold to Toyota.    According to the indictment, Hirano participated directly in the conspiratorial conduct, and directed, authorized and consented to his subordinates’ participation.    In addition, the indictment charges that in February 2010, after Hirano learned that the FBI had searched Tokai Rika’s U.S. subsidiary, he knowingly and corruptly persuaded employees at Tokai Rika to destroy paper documents and delete electronic data intending to prevent the grand jury from obtaining evidence of antitrust crimes.

Tokai Rika is a manufacturer of automotive parts, including heater control panels, based in Nagoya, Japan.    Tokai Rika pleaded guilty on Dec. 12, 2012, for its role in the conspiracy and to obstruction of justice, and was sentenced to pay a $17.7 million criminal fine.

Heater control panels are located in the center console of an automobile and control the temperature of the passenger compartment of a vehicle.    Heater control panels differ by function and design for a particular vehicle model.    Examples include automatic heater control panels, which maintain the temperature within the vehicle to a designated temperature point, and manual heater control panels, which regulate the temperature through manual controls operated by vehicle occupants.

Including Hirano, 34 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.

Hirano 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.    The maximum penalty for obstruction of justice is 20 years in prison and a $250,000 criminal fine for individuals.

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 charges were 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.

TWO EXECUTIVES INDICTED FOR ROLES IN FIXING PRICES ON AUTOMOBILE PARTS SOLD TO TOYOTA TO BE INSTALLED IN U.S. CARS

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WASHINGTON — A Cleveland federal  grand jury returned an indictment against two executives of a Japanese  automotive supplier for their roles in an international conspiracy to fix  prices of automotive anti-vibration rubber parts sold to Toyota and installed  in U.S. cars, the Department of Justice announced today.

The indictment,  filed yesterday in U.S. District Court for the Northern District of Ohio in  Toledo, charges Masao Hayashi and Kenya Nonoyama, both Japanese nationals, with  participating in a conspiracy to suppress and eliminate competition in the  automotive parts industry by agreeing to allocate the supply of, to rig bids  for and to fix, raise and maintain the prices of anti-vibration rubber parts  sold to Toyota Motor Corp., Toyota Motor Engineering & Manufacturing North  America Inc. and affiliated companies (collectively Toyota) for installation in  automobiles manufactured and sold in the United States and elsewhere.

Automotive  anti-vibration rubber products 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.

The indictment alleges, among other things, that from as early as March  1996 until at least December 2008, Hayashi and Nonoyama and their co-conspirators  conducted meetings and communications in Japan to reach collusive agreements.  The indictment alleges that the conspiracy  involved agreements affecting the Toyota Corolla, Avalon, Tacoma, Camry,  Tundra, Sequoia, Rav4, Sienna, Venza and Highlander.

“Today’s  indictment reaffirms the Antitrust Division’s commitment to hold executives  accountable for actions that corrupt the competitive landscape and harm  consumers,” said Renata B. Hesse, Deputy Assistant Attorney General for the  Department of Justice’s Antitrust Division.  “The Antitrust Division continues to work  closely with its fellow competition enforcers abroad to ensure that there are  no safe harbors for executives who engage in international cartel crimes.”

Hayashi and  Nonoyama are charged with a 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 Hayashi  and Nonoyama, 21 companies and 26 executives have been charged in the Justice  Department’s ongoing investigation into the automotive parts industry.  To date, more than $1.6 billion in criminal  fines have been obtained and seventeen of the charged executives have been  sentenced to serve time in U.S. prisons or have entered into plea agreements  calling for significant prison sentences.

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 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.

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.

PANASONIC AND ITS SUBSIDIARY SANYO AGREE TO PLEAD GUILTY IN SEPARATE PRICE-FIXING CONSPIRACIES INVOLVING AUTOMOTIVE PARTS AND BATTERY CELLS

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WASHINGTON — Panasonic Corp. and its subsidiary, SANYO Electric Co. Ltd.,  have agreed to plead guilty and to pay a total of $56.5 million in criminal  fines for their roles in separate price-fixing conspiracies involving automotive parts and battery cells, the Department of Justice announced  today.  LG Chem Ltd., a leading  manufacturer of secondary batteries, has agreed to plead guilty and to pay a  $1.056 million criminal fine for price fixing involving battery cells.

Osaka, Japan-based Panasonic agreed to pay a $45.8 million criminal  fine for its role in the automotive parts conspiracy. SANYO agreed to pay a  $10.731 million criminal fine for its role in the battery cells conspiracy.  The guilty pleas against SANYO and LG Chem  are the first in the department’s ongoing investigation into anticompetitive  conduct in the cylindrical lithium ion battery cell industry.

The three-count felony charge against Panasonic was filed in U.S.  District Court for the Eastern District of Michigan.  Separate one-count felony charges were filed  against SANYO and LG Chem in U.S. District Court for the Northern District of  California.  As part of the plea  agreements, which are subject to court approval, the charged companies have  agreed to cooperate in the department’s ongoing antitrust investigations.

Panasonic has agreed to plead  guilty for its role in a conspiracy to fix prices of switches, steering angle sensors and automotive high intensity discharge (HID) ballasts installed in  cars sold in the United States and elsewhere.   SANYO and LG Chem Ltd. have agreed to plead guilty for their roles in a  conspiracy to fix the prices of cylindrical lithium ion battery cells sold  worldwide for use in notebook computer battery packs.

“Panasonic is charged with participating in separate price-fixing  conspiracies affecting numerous parts used in cars made and sold in the United  States while its subsidiary was also fixing prices on battery cells used by  consumers of notebook computers,” said Scott D. Hammond, Deputy Assistant  Attorney General for the Antitrust Division’s criminal enforcement program.  “Pleading guilty and cooperating with the  division’s ongoing investigations is a necessary step in changing a corporate culture that turned customers into price-fixing victims.”

According  to the first count of a three-count felony charge filed today in U.S. District  Court for the Eastern District of Michigan in Detroit, Panasonic participated  in a conspiracy to rig bids for, and to fix, stabilize and maintain the prices  of steering wheel switches, turn switches, wiper switches, combination switches  and door courtesy switches sold to Toyota Motor Corp. and Toyota Motor  Engineering & Manufacturing North America Inc. in the United States and  elsewhere. According to the court document, Panasonic and its co-conspirators  carried out the conspiracy from at least as early as September 2003 until at  least February 2010.

The  second count charges that Panasonic, during this same time period, participated  in a conspiracy to rig bids for, and to fix, stabilize,  and maintain the prices of steering angle sensors sold to Toyota in the United  States and elsewhere. The department said that Panasonic and its  co-conspirators agreed, during meetings and conversations, 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 steering angle sensors sold to Toyota  Motor Corp. and Toyota Motor Engineering & Manufacturing North America Inc.  in the United States and elsewhere.

According  to the third count of the charge, from at least as early as July 1998 and  continuing until at least February 2010, Panasonic and its co-conspirators  participated in a conspiracy to suppress and eliminate competition in the  automotive parts industry by agreeing, during meetings and conversations, to rig bids for, and to fix,  stabilize, and maintain the prices of automotive HID ballasts sold to Honda  Motor Co. Ltd. and American Honda Motor Co. Inc., Mazda Motor Corp. and Mazda  Motor of America Inc., and Nissan Motor Co. Ltd. and Nissan North America Inc.  in the United States and elsewhere.

Including Panasonic, 11 companies and 15 executives have pleaded  guilty or agreed to plead guilty and have agreed to pay a total of more than  $874 million in criminal fines as a result of the auto parts investigation. Additionally, 12 of the individuals have been sentenced to pay criminal fines and to serve jail sentences ranging from a year and a day to two years each. The three additional executives have agreed to serve time in prison and are currently awaiting sentencing.

“The FBI remains committed to protecting American consumers and  businesses from corporate corruption. The conduct of Panasonic, SANYO, and LG Chem  resulted in inflated production costs for notebook computers and cars purchased  by U.S. consumers,” said Joseph S. Campbell, FBI Criminal Investigative Division Deputy Assistant Director.  “These investigations illustrate our efforts to ensure market fairness for U.S. businesses by bringing corporations to justice when their commercial activity violates antitrust laws.”

According to the one-count felony charge  filed today in the U.S. District Court for the Northern District of California  in San Francisco, SANYO and LG Chem engaged in a conspiracy to fix the price of the cylindrical lithium ion battery cells used in notebook computer battery packs from about April 2007 until about September 2008. Cylindrical  lithium ion battery cells are rechargeable batteries that are often incorporated in groups into more powerful battery packs commonly used to power electronic devices.

According to the charges, SANYO, LG Chem and  their co-conspirators carried out the conspiracy by, among other things, agreeing during meetings and conversations to price cylindrical lithium ion  battery cells for use in notebook computer battery packs to customers at  predetermined levels and issuing price quotations to customers in accordance  with those agreements. The department also said that SANYO, LG Chem and their  co-conspirators collected and exchanged information for the purpose of  monitoring and enforcing adherence to the agreed-upon prices and took steps to  conceal the conspiracy.

Panasonic, SANYO and LG Chem are each 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 for the company may be  increased to twice the gain derived from the crime or twice the loss suffered  by the victims, if either of those amounts is greater than the statutory  maximum fine.

Today’s charges arose from an ongoing  investigation in the cylindrical lithium ion battery cells industry being  conducted by the Antitrust Division’s San Francisco Office and the FBI in San  Francisco as well as 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 automotive parts 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. 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 Detroit Field Office at 313-965-2323. Anyone  with information concerning illegal or anticompetitive conduct in the battery industry is urged to call the Antitrust Division’s San Francisco Office at  415-436-6660 or visit www.justice.gov/atr/contact/newcase.htm.