Two More Car Parts Companies Settle Price Fixing Allegations
Two more auto parts manufacturers agreed to plead guilty to charges that they conspired to fix prices of auto parts. In separate cases, Toyo Tire & Rubber agreed on Nov. 26 to pay $120 million to settle its charges (here), and Stanley Electric Co. Ltd. agreed on Nov. 27 to pay $1.44 million (here). The two settlements are part of the larger Justice Department investigation that has so far resulted in over $1.8 billion in criminal fines and prison time for 20 company executives for price fixing in the auto parts industry.
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According to the U.S. Attorney’s Office for the Northern District of Ohio, Toyo engaged in two separate conspiracies to fix the prices of anti-vibration rubber and driveshaft parts. Toyo conspired to allocate sales, rig bids, and fix the prices of anti-vibration rubber parts it sold to Toyota, Nissan, and Subaru, among others. The scheme lasted from as early as 1996 until at least May 2012, the attorney’s office said. Toyo also conspired to fix prices of constant-velocity-joint (CV joint) boots it sold to U.S. subsidiaries of GKN, a British auto parts supplier, it said.
Meanwhile, Tokyo-based Stanley Electric conspired to fix the price of lamp ballasts sold to automakers, said the Justice Department. Stanley Electric met with its coconspirators to discuss and agree on bids, price quotes, and price adjustments, and also agreed to allocate sales of lamp ballasts, DOJ said.