2005 Toyota Sienna Minivan Xle on 2040-cars

Auto blog

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.

NHTSA expands new Takata probe to 4 more automakers

DETROIT — The U.S. government's highway safety agency has launched an investigation into four additional automakers that have a potentially deadly type of Takata air bag inflator in their vehicles but have yet to recall them. The National Highway Traffic Safety Administration said in documents posted Thursday that it is investigating Audi, Toyota, Honda and Mitsubishi in connection with a Takata recall involving 1.4 million inflators. This brings the total number of manufacturers potentially impacted to five, as BMW was connected to the issue when it was brought to light earlier in December. The inflators made by the now-bankrupt Takata have a distinct and separate problem that can cause them to blow apart a metal canister and spew shrapnel into people's faces and bodies. The problem killed a driver in Australia who was in an older 3-Series BMW, which has already recalled more than 116,000 vehicles. The problem is so dangerous that in some cases BMW has told drivers to park their vehicles until repairs can be made. The safety agency says in documents that Takata didn't provide details on the affected makes, models or model years of vehicles with the defective inflators. So it is telling the companies to recall them promptly. The agency says that based on when the faulty inflators were produced, it's likely that the vehicles to be recalled came from the 1995 through 2000 model years. In letters to all four automakers, NHTSA says they have five business days to notify the agency after finding out about a safety defect. “If your company has not yet gathered enough evidence to make a determination that the subject air bag inflators present an unreasonable risk to motor vehicle safety, reply with a detailed work plan including the benchmark dates required to make the determination,” the agency wrote in letters to all four automakers dated Wednesday. A Honda spokesman said Thursday it hasn't determined yet whether its vehicles are affected, but a decision should be made soon. Audi, Mitsubishi and Toyota said they are still investigating. NHTSA has told the companies to respond by Jan. 17. On Dec. 4, NHTSA posted documents from Takata and BMW detailing the problems. The documents said the Australian driver was killed, while another Australian driver and a driver in Cyprus were injured. Unlike previous recalls, the Takata non-azide inflators do not use volatile ammonium nitrate to fill the air bags in a crash.

Toyota To Stop Building Cars In Australia

Toyota said Monday it will stop making cars in Australia by the end of 2017, spelling a final blow to auto manufacturing in the country, where car companies say high production costs and tough competition have crippled business conditions. Toyota's announcement, which will result in the loss of around 2,500 jobs, was widely anticipated, coming just two months after General Motors Co. said it would end production in Australia by 2017. Ford Motor Co. announced in May that it would cease Australian production in 2016. All told, some 6,600 manufacturing jobs will be lost between the three companies. Mitsubishi Motors Corp. stopped manufacturing in Australia in 2008. Toyota Motor Corp. said its decision was based on a combination of factors including the high Australian dollar, the high cost of manufacturing and competition. "We did everything that we could to transform our business," Toyota Australia CEO Max Yasuda said in a statement. "But the reality is that there are too many factors beyond our control that make it unviable to build cars in Australia." Toyota President Akio Toyoda delivered the news to workers at the company's Altona plant near Melbourne, where he paid tribute to 50 years of Toyota cars being built in Australia. "To now have to deliver this news to the very people we have worked so hard with, to the many people who have supported our production for so many years, is most regretful for Toyota and, for me personally, simply heartbreaking," he said. Toyota, which has been manufacturing cars in Australia since 1963, currently makes the Camry, Camry Hybrid and Aurion in the country. It will become a sales company. Industry Minister Ian Macfarlane said Toyota had not asked the government for any financial assistance in the lead-up to its decision. The government had subsidized auto manufacturing, hoping to keep the industry alive as it supports tens of thousands of jobs in other areas including auto parts. Holden, which is the Australian arm of GM, received 1.8 billion Australian dollars ($1.6 billion) in federal government assistance in the past 11 years. Auto makers in Australia produced about 178,000 cars in 2012, according to the International Organization of Motor Vehicle Manufacturers. Related Gallery AOL Autos Test Drive: 2014 Toyota Highlander Plants/Manufacturing Toyota