Nine parts makers plead guilty to price-fixing scheme

[Stuart G]

Source: NBC News

Michael Strong, The Detroit Bureau,


Nine Japan-based firms and two executives have agreed to plead guilty and pay fines totaling more than $740 million for their roles in an international price-fixing scheme that provided parts to U.S. automakers, according to the Department of Justice.

“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,” Attorney General Eric Holder in a statement Thursday. “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.”

The pleadings and fines are the result of a long-running investigation that focused on price-fixing on a variety of components including instrument panels, air bags and steering wheels. The probe has expanded over time as implicated auto-parts companies have presented evidence of price fixing in other previously undiscovered schemes.

The first charges were filed in 2011. With Thursday’s agreements, 20 companies have agreed to pay more than $1.6 billion in criminal fines. Seventeen of the 21 charged executives have been sentenced to U.S. prisons or entered into plea agreements calling for significant prison sentences.


Read more: http://www.nbcnews.com/business/nine-car-part-makers-plead-guilty-price-fixing-scheme-8C11268194

---

Surprise, Surprise...really now

[seveneyes]

1. How about doing the same for pharmaceuticals

Even after they make a killing with obscene profits, they continue to keep life saving medicine out of reach of mere humans.

[Wilms]

2. ^

[seabeckind]

3. I remember a time

when manufacturers, especially auto manuf, controlled their own parts supply. They controlled the design, production, and warehousing.

Lots of jobs doing those functions. American jobs.

Then the auto big shot managers shed those divisions.

Decided to go with low bidder. And of course made those newly shed parts divisions compete for the "contract". Of course they had to compete with foreign interests...ones that had a much cheaper labor force, didn't work real hard for high quality, saved lots of money...that they invested in the money business instead of the auto business.

The parts division shedding works for a while until the capability for alternatives has disappeared.

Then the low bidder is the only bidder.

Duh.

[kelliekat44]

4. Let's take a deep breath and applaud the fact that our DOJ is really accomplishing a lot. But

of course very little about this will get much air time on cable news or talk radio.

[Blandocyte]

5. Stop harrassing the job creators!

Let the invisible hand of the market hold a gun on you and force you to pay what the greedy bastards want you to pay.