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Bosch fined $57.8 million by DOJ for price fixing and bid rigging

The US Department of Justice has been investigating bid rigging and price fixing among automotive parts suppliers for years, and so far the agency has leveled nearly $2.5 billion in fines against 34 companies. The latest business to be caught in this ongoing crackdown is Germany's Robert Bosch GmbH (Bosch), the world's largest independent auto component maker, and it agrees to pay a $57.8 million criminal fine to the Feds. According to the DOJ, Bosch has agreed to plead guilty to pricing fixing and bid rigging for spark plugs and oxygen sensors supplied to the former DaimlerChrysler, Ford and General Motors. The rigging is said to have occurred between January 2000 and July 2011. Bosch also allegedly played foul with starter motors sold to Volkswagen from January 2009 until at least June 2010. Bosch and other companies allegedly conspired on the pricing for bids to submit to automakers, and sold the parts at noncompetitive prices. The DOJ filed a one-count felony charge in US District Court for these actions. The company's plea is still subject to court approval, though. Bosch is only the third European company to be charged in this investigation, according to the DOJ. So far, many of the fined businesses have been from Japan, including Takata, NGK and others. Some execs have claimed price-fixing has been the standard operating procedure in the auto parts industry for a long time. Robert Bosch GmbH Agrees to Plead Guilty to Price Fixing and Bid Rigging on Automobile Parts Installed in U.S. Cars Robert Bosch GmbH, the world's largest independent parts supplier to the automotive industry, based in Gerlingen, Germany, has agreed to plead guilty and to pay a $57.8 million criminal fine for its role in a conspiracy to fix prices and rig bids for spark plugs, oxygen sensors and starter motors sold to automobile and internal combustion engine manufacturers in the United States and elsewhere, the Department of Justice announced today. According to the one-count felony charge filed today in the U.S. District Court of the Eastern District of Michigan, Bosch conspired to allocate the supply of, rig bids for, and to fix, stabilize and maintain the prices of, spark plugs and oxygen sensors sold to automobile and internal combustion engine manufacturers such as DaimlerChrysler AG, Ford Motor Company, General Motors Company and Andreas Stihl AG & Co., among others, in the United States and elsewhere.

Ford and Lincoln recall roundup: Explorer, F-350 Super Duty, Aviator

Ford and Lincoln released information on a flurry of recalls this morning. There are three in total, and they span different models and separate issues. Those models include the 2013-17 Ford Explorer, 2020-21 Lincoln Aviator and 2020-21 Ford F-350 Super Duty. We’ll organize these three in order of most cars recalled. 2013-17 Ford Explorer This recall includes a substantial 774,696 vehicles, of which 676,152 are in North America. Why? Ford says these vehicles “may experience a seized cross-axis ball joint that may cause a fractured rear suspension toe link.” The diminished steering control that would follow could increase the likelihood of a crash, Ford states. Only vehicles that spent time in high corrosion states should be affected, Ford says. That means places that lay salt down, experience cold weather and high humidity. Owners of these vehicles will need to take their car into the dealership, where it will be inspected to determine if it needs work. If so, Ford will replace the cross-axis ball joint/knuckle, then replace the toe links with a newly-designed part. Notifications to owners of these vehicles are scheduled to be sent out the week of August 23.  WeÂ’ll note that Ford is reporting six “allegations of injury” related to this issue. For those who donÂ’t live in the high-corrosion states/their car was never registered in those states, Ford is offering a customer satisfaction program in case you were interested in having the work done anyway. 2020-21 Lincoln Aviator Lincoln is pulling back 40,995 new Aviators due to an improperly secured battery cable wire harness. This recall applies to gasoline-only versions of the Aviator, so Grand Touring PHEV buyers neednÂ’t worry. The wire harness may contact the AC compressor pulley due to it being secured improperly. Ford says that over time, the pulley could rub through the wire harnessÂ’ insulation, resulting in a short circuit and ultimately a fire. However, Ford is not currently aware of any injuries or fires related to this concern as of now. When you bring your car in, the dealer will inspect all the parts to determine what needs to be done. Fixes range from a basic tie strap to keep the harness away from the pulley (if it hasnÂ’t made contact yet), to replacement of the wire harness and AC belt if the contact has caused damage. Owners should expect to be notified the week of July 30 if their Aviator is involved in the recall.

Trucks, SUVs — and Camry — shine in mixed U.S. January vehicle sales

DETROIT — Automakers posted mixed U.S. new vehicle sales data for January, with American consumers continuing to abandon passenger cars for the larger pickup trucks, SUVs and crossover models that manufacturers also love because they are far more profitable. Total industry auto sales for the month rose 1 percent versus January 2016. According to Autodata Corp, which tracks industry sales, the seasonally adjusted annualized rate (SAAR) of U.S. car and light truck sales in January fell to 17.12 million units from 17.44 million a year earlier. Analysts polled by Reuters had expected a January SAAR of 17.2 million units. U.S. auto industry sales fell 2 percent in 2017 to 17.23 million vehicles after hitting a record high in 2016 and are expected to drop further in 2018 despite a solid economy. Interest rates are rising and around 4 million late-model used cars will return to dealer lots this year to compete with more expensive new ones. Automakers have used consumer discounts to boost sales, a growing concern for observers who say this undermines resale values and profits. Discounts declined in January, but remained above 10 percent of manufacturers' recommended prices. ""I think the industry has accepted that (sales) volumes will fall somewhat in 2018 ... and I don't think the industry is going to go over the cliff with insane incentives," Mike Jackson, chief executive officer of AutoNation Inc, told Reuters after his company, the largest U.S. auto retail chain, posted a higher quarterly net profit. Mark Wakefield, head of the North American automotive practice for consultancy AlixPartners, had a gloomier perspective. The industry's less-than-stellar sales performance for January showed "we are now past the peak," he said. "Automakers are now selling the deal instead of the vehicle," he said. "That's a tough spot to be in because that treadmill is hard to get off once you're on it." General Motors January sales rose 1.3 percent, driven by a 16 percent rise in fleet sales. Sales to consumers fell 2.4 percent. GM posted strong gains for models such as the Silverado pickup truck and Equinox crossover model, while its passenger cars continued to struggle. Ford The Blue Oval posted a 6.6 percent sales decline for January, with retail sales down 4.3 percent. Sales of Ford's F-Series pickup trucks - America's best-selling vehicle brand for decades — rose 1.6 percent. Passenger cars were down more than 23 percent.