In what has become an ugly industry trend, two Japanese auto suppliers will reportedly plead guilty to pricing fixing charges in U.S. court. The latest scandal involves Japanese parts makers Denso Corp. and Yazaki Corp.
According to the U.S. Department of Justice, both companies will plead guilty to bid-rigging schemes and pay a combined $548 million in fines. Additionally, four Yazaki executives will be sentenced to prison terms in the United States.
Yazaki has been under investigation by U.S. authorities since September of last year for its role in a wiring harness price-fixing scam. Officials believe that Yazaki, along with several other suppliers, artificially inflated prices for a ten-year period between 2000 and 2010. For its role in the scandal, the company will pay $470 million in fines – the second-largest fine ever handed down for a Sherman Act antitrust violation.
A class action lawsuit is also pending against Yazaki. The suit is seeking an unspecified amount for higher car prices as a result of Yazaki’s price-fixing.
Denso will plead guilt to unjustified price increases for its heating-control panels and electronic control units. None of Denso’s executives will have to serve prison time, but the company will have to pay $78 million in fines.
