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Kayaba, Sumitomo to pay millions for price-fixing in US

Kayaba Industry Co, which does business in the US as suspension parts maker KYB, and Sumitomo Electric Industries are facing payments in the millions to settle price-fixing cases about the components that they make. As part of the Department of Justice's ongoing crackdown of price fixing in the auto industry, KYB agreed to pay $62 million and pleaded guilty to conspiracy to set the cost of shock absorbers from the mid '90s through 2012. The company allegedly worked with co-conspirators to keep the cost of the parts high, and those components then made it into vehicles from Honda, Kawasaki, Nissan, Subaru, Suzuki, and Toyota. "Any collusive agreement among competitors to restrict price competition undercuts our free enterprise system and violates the law," said Carter M. Stewart, US Attorney of the Southern District of Ohio, in the DoJ's announcement. Over the past few years, the DoJ has brought cases against 37 parts suppliers and 55 executives, leading to over $2.6 billion in fines. The investigations haven't always been so successful – some of the Japanese execs fled from the US to avoid prosecution. Critics allege that price fixing is simply how business is done. According to Automotive News, Sumitomo Electric Industries is also facing a $50 million settlement in a civil lawsuit that's related to price fixing of parts like wiring harnesses and heater control panels. The plaintiffs include owners and dealers that purchased vehicles with these parts. The company asserts that the violations are from before 2010, and it now has different process in place to avoid further violations. KYB Agrees to Plead Guilty and Pay $62 Million Criminal Fine for Fixing Price of Shock Absorbers Kayaba Industry Co. Ltd., dba KYB Corporation (KYB) has agreed to plead guilty and to pay a $62 million criminal fine for its role in a conspiracy to fix the price of shock absorbers installed in cars and motorcycles sold to U.S. consumers. According to charges filed today, KYB conspired from the mid-1990s until 2012 to fix the prices of shock absorbers sold to Fuji Heavy Industries Ltd. (manufacturer of Subaru vehicles), Honda Motor Co. Ltd., Kawasaki Heavy Industries Ltd., Nissan Motor Company Ltd., Suzuki Motor Corporation and Toyota Motor Company, including their subsidiaries in the United States.

2016 Honda Civic is a newly competitive compact [w/video]

It's fair to call the last-generation Honda Civic, built from 2012 to 2015 (with a quick refresher in the middle), a disappointment. It came out using an old compact car formula – going cheap and lightly equipped – at almost the exact moment its competitors embraced high technology and refined, expressive designs. We spent some time today with the vehicle meant to correct this mistake, the all-new, tenth-generation Civic. Easily the most discussed thing about the new Civic is its handsome new sheet metal, which we actually showed you last week. The expressive profile, with strong arches over the front wheels and a handsome, almost fastback-like roofline is a major departure from the duller, three-box look of the current Civic. The front fascia's highlight is the prominent chrome grille, backed by the optional LED headlights. In back, that tiny decklid is outshined – no pun intended – by a set of LED taillights that should present a very impressive look at night. The overall balance of the design is impressive. The ninth-generation Civic was widely panned for its crummy interior quality. Designed at a time of global financial crisis, Honda opted for more affordable materials that lacked the soft-touch goodness of many competitors. The new Civic addresses this shortcoming, fitting not only more impressive plastics, but the technology to back them up. From the EX trim on up, the instrument cluster's focal point is a large TFT display, flanked by a pair of traditional gauges. Yep, that's right. Honda is getting rid of the Civic's multi-tiered dash, and we couldn't be happier. On the center console, there's a seven-inch touchscreen display that uses the same Android-based operating system as the new Pilot. And speaking of Android, the Civic will play nice with both Android Auto and Apple CarPlay. As for the actual driving experience, we can't tell you much about it for another couple weeks, but we can talk briefly about the seats. The hip point has been dropped by a full inch in front, and has the effect of creating a sport-driving-ready seating position. Those seats are comfortable, too, although we'll need more than the few minutes we got with the new Civic to make an informed judgment. We don't, however, need any extra time to talk about the backseats. That plunging roofline is not conducive to rear headroom, a fact that overshadows the extra two inches of rear legroom. You're probably wondering when we'll talk about the powertrains.

Will states start to prevent you from registering cars that have pending recalls?

The impact of 2014 – henceforth known as Year of the Recalls – will have long-ranging consequences on the auto industry. One of the biggest changes, though, might not be in the way manufacturers inform the government of pending recalls or in the way Uncle Sam punishes automakers that violate its rules, but in the ability to sell cars with pending recalls. And strangely enough, the charge is being led by an automaker. Honda Executive Vice President Rick Schostek, pictured above, argued during a meeting of the Senate Transportation Committee that the government needs to take a role in mandating that consumers have recall services performed. That could include withholding registration for vehicles with pending recalls, Bloomberg reports. Honda is just one of the automakers currently embroiled in the massive Takata airbag recall. "It's a good idea," safety advocate Clarence Ditlow said, according to Bloomberg. "California won't give you a registration if you have an emissions recall. Why not a safety recall?" "Honda is going to use any innovative tools to find customers and get these recalls done," Schostek told the Transportation Committee. The exec, aside from echoing Ditlow's viewpoint, also argued for requiring dealerships and garages to inform vehicle owners of incomplete recalls, regardless of the service provided. Schostek also made an argument that state governments could step in, as well. Whatever ends up happening, it's fair to say that between Takata and General Motors, the future of recalls for American consumers are set for significant changes. News Source: BloombergImage Credit: J. Scott Applewhite / AP Government/Legal Recalls Honda Ownership Safety