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DoJ fines Japanese parts firms $740M in massive automotive price-fixing scandal

Nine Japanese suppliers have pleaded guilty in US court over charges of price fixing in the automotive parts industry, resulting in the Department of Justice doling out a total of $740 million of fines, according to a report from Bloomberg. The scandal, which has resulted in General Motors, Ford, Toyota and Chrysler spending up to $5 billion on inflated parts and driving up prices on 25 million vehicles has sent the DoJ hustling into investigations. "The conduct this investigation uncovered involved more than a dozen separate conspiracies aimed at the U.S. economy," Attorney General Eric Holder (pictured above) said during yesterday's press conference.
As the investigation stands, the DoJ has issued $1.6 billion in fines against 20 companies and 21 individual executives, with 17 of the execs headed to prison. Deputy Assistant Attorney General Scott Hammond said, "The breadth of the conspiracies brought to light today are as egregious as they are pervasive. They involve more than a dozen separate conspiracies operating independently but all sharing in common that they targeted US automotive manufacturers."
Big-name suppliers indicted in the investigation include Mitsubishi Electric, Mitsubishi Heavy Industries, Hitachi Automotive and Mitsuba Corporation. A list of fines and other corporations named in the investigation is available at Bloomberg.

Ram trucks lead 2021 J.D. Power Initial Quality Study

For the first time ever, Ram leads in J.D. Power's annual Initial Quality Study with a score of 128 PP100, or problems experienced per 100 vehicles in the first 90 days of ownership. Ram was in third place in last year's rankings. Coming in second place is Dodge (139 PP100), a sister division to Ram under the Stellantis umbrella, followed by Lexus (144 PP100), this year's highest-ranked premium automaker, in third. These findings reinforce an overall trend over the last few decades where mass-market brands have outperformed premium brands that tend to introduce bleeding-edge technologies that can confuse owners or fail to work entirely. Genesis (148 PP100) is the only other premium automaker to perform better than average. At the bottom of the official rankings is Chrysler (251 PP100), which seems to make little sense considering most of its technologies are shared with Dodge and many with Ram until you consider that Chrysler only offers two platforms and one of them is the Pacifica/Voyager minivan twins that are unique to the brand. The next worst are Audi (240 PP100) and Volkswagen (213 PP100). Tesla would fall in between VW and Audi with its score of 231PP100, but because the electric car manufacturer doesn't provide access to J.D. Power in every state, it's not officially included. Interestingly, J.D. Power said on a followup call that the problems that Tesla owners report most often are more traditional issues, such as panel fitment, interior noises or paint problems instead of problems with the car's electronics. According to J.D. Power, the industry averaged a score of 162 PP100. That is four points higher than the overall score in 2020, and 20 of 32 brands improved their quality scores over the last year. That's a two percent increase in quality in 2021, which is good but slightly lower than the average rate of improvement over the last decade. On a car-by-car basis, the Nissan Maxima leads the overall field with a score of 85 PP100. Issues with infotainment systems — and in particular problems pairing smartphones with in-car technologies — continue to be the top-reported problems. Headaches connecting Apple CarPlay and Android Auto dominate the complaints. "Owners want wireless connectivity, and the industry has responded," according to Dave Sargent, vice president of automotive quality at J.D. Power. "However, this has created a bigger technical challenge for both automakers and tech companies.

Chrysler Airflow EV concept teased with new nose ahead of NY Auto Show

Chrysler is once again teasing its battery-electric Airflow concept. The company has issued a new image ahead of its official debut at the New York Auto Show later this week. The rendering, as well as language in the accompanying release, indicates that Chrysler may have redesigned the concept before a production version even hits the market. The latest image shows a long, thin light bar at the Airflow's nose, with acute angles just before the headlight to create a bit of a "lightning bolt" zig-zag. There's also a wide, U-shaped graphic below the bar, and a "grille" featuring a pattern of slits that surrounds the bar. Previous Airflow images from Chrysler — released as recently as January at CES — have shown a very different front end. There, a differently shaped bar was broken up by a stylized Chrysler logo, done up in an outline of the traditional wings. The ends of the bar extended to the edges of the headlights without any sharp angles. It also appeared to have a different grille texture above and below the bar. "Chrysler will unveil a new look for the brandÂ’s all-electric Chrysler Airflow Concept at the 2022 New York International Auto Show," the press release states. The same statement also refers to "a potential design path on the brandÂ’s journey to an all-electric future." The Airflow is the latest in a slew of luxury models promised by automakers trying to re-invent their brands by going electric. It is named after the revolutionary 1934 Airflow, the first automobile to employ aerodynamics in its design. Though not a commercial success, it is credited with forever changing automotive styling principles. Although EVs are no longer avant-garde, Chrysler seems to hope that the new Airflow will make as dramatic a change in the industry, or at least revive the brand.