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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.

Nissan recalls 3,065 Pathfinders for transmission fluid leak

Nissan is recalling 3,065 units of the 2013 Pathfinder equipped with the CVT, due to a potential transmission fluid leak. On crossovers built from April 18, 2012 to October 3,2012 "inadequate clamping force" on the hose connected to the internal oil cooler can cause the hose to come loose and let fluid escape. A severe loss of fluid can cause the transmission to stop working properly.
The recall is the result of a safety investigation begun last September, when it was thought a recall could involve 110,000 units of the Pathfinder and Infiniti JX35. Asked for comment about how such a large number of vehicles potentially involved could end up with just 3,065 being recalled, Nissan rep Steve Yaeger told Autoblog that Nissan initiated a service campaign for the issue last year - a service campaign notifies owners to take their vehicles to the dealer for repair of "what is generally not a safety issue" - and that there was a "production improvement" that addressed the clamping issue. The service campaign included the vehicles being recalled, but the recall is limited to just those vehicles that were built before the production-line fix.
Nissan will begin informing affected owners next month, at which time owners can take their vehicles to dealers to have the hose clamp repaired. The press release below from the National Highway Traffic Safety Administration has more information.

2016 Nissan Maxima launches production in Tennessee

The 2016 Nissan Maxima saw its big debut at the end of the brand's 90-second Super Bowl commercial this year. However, we didn't get the full details about the latest generation of the model marketed as the four-door sports car until the recent New York Auto Show. Now just a few weeks later, the sedans are rolling down the assembly line in Smyrna, TN, and they should hit the road this summer. "Today's launch of the all-new Maxima is the beginning of an exciting year for Nissan's US lineup, with new versions of the Altima, Sentra and Titan due later this year," John Martin, Nissan's senior vice president for manufacturing, supply chain management and purchasing, said in the production announcement. The sedan's revised 3.5-liter V6 is also made in Tennessee at Nissan's Decherd Powertrain Plant. The 2016 Maxima certainly looks different than other mainstream sedans with its prominent V-shaped grille, slashing headlights and floating roof. Prices start at $32,410, plus $825 for destination. For that, customers get a 300-horsepower V6 that's connected to what Nissan claims is a "performance-oriented" CVT. The latest model is also estimated to get 30 miles per gallon on the highway. NISSAN BEGINS PRODUCTION OF EIGHTH-GENERATION MAXIMA "4-DOOR SPORTS CAR" IN TENNESSEE NASHVILLE, Tenn. – Nissan's Smyrna Vehicle Assembly Plant continues its reign as the top-producing automotive plant in North America, as Gov. Bill Haslam, U.S. Senator Lamar Alexander and Tennessee Economic and Community Development Commissioner Randy Boyd joined plant employees to celebrate the start of production for the all-new 2016 Nissan Maxima. "When Nissan came to Tennessee more than 30 years ago, there were almost no auto jobs in the state," said Alexander. "Three decades later, about one-third of our manufacturing jobs are auto related, auto suppliers have located in 80 counties, and our family incomes are higher. I want to thank Nissan for providing opportunities for thousands of talented Tennesseans." The first U.S.-assembled Maxima rolled off the assembly line in Smyrna in January 2003. Since then, Nissan has produced nearly 800,000 Maxima sedans at the plant, with more than 60,000 shipped to markets worldwide. Maxima is one of six models currently built at the Smyrna plant and is assembled on the same line as the Altima midsize sedan and all-electric Nissan LEAF. Maxima's new 3.5-liter, VQ-series V6 engine is also assembled in Tennessee at Nissan's Decherd Powertrain Plant.