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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.

Subaru puts China production on hold amidst slowing growth

Subaru's 2015 sales and production forecast estimates the Japanese brand to sell about 60,000 vehicles in China this year, a 10 percent rise. However, a recent decision not to build a factory there might make future growth more difficult. Given the changing state of the market, the automaker doesn't seem concerned by the potentially lost sales. According to Bloomberg, even if the Chinese government gave permission for Subaru to build its planned joint venture factory with Chery, the Japanese brand would not take advantage of it. "Since the profits are split with your partner, you would have to double the sales to maintain the profits you earn by exporting from Japan," said Akira Mabuchi, the company's executive in charge of China, according to Bloomberg. Subaru is in the odd position of being the only major Japanese automaker without a joint venture partner to build cars in China, but the massive year-over-year growth there seems to be slowing. Auto sales in China were up 6.9 percent in 2014, according to Bloomberg, compared to 14 percent in 2013. Also, Chinese consumers have been famously averse to buying Japanese vehicles with only half of the consumers there even willing to purchase one. Instead, the company is focusing on the US market, according to Bloomberg. The decision makes sense. While Subie's sales in China shrunk 2 percent in 2014 to about 55,000 vehicles, the company grew 21 percent in the US to 514,000 units. The automaker already has plans to add capacity to its factory in Indiana. News Source: BloombergImage Credit: Jae C. Hong / AP Photo Plants/Manufacturing Subaru

Junkyard Gem: 1984 Subaru GL 4WD Wagon, Colorado Stereotypes Edition

I live in Denver, which means my local junkyards are well-stocked with used-up Subarus. These days, that means mostly Outbacks from the 1995-2005 period, but sufficient 1970s and 1980s Subarus remain in service that they show up from time to time. Here, in a Denver self-service yard, is a second-generation Leone wagon, from the era when this car was called just "the Subaru" in the American market. It appears that this car's final owner named it The Little D. Right next to the rag being used as a gas cap, a Yoda-ized Steal Your Face skull. This sticker from Incredible Extracts is easy to find in and on the cars in Denver-area wrecking yards. Someone made a pretty good Hunter S. Thompson stencil for the right-hand rear side glass. Neither of the two other members of the Male Hipster Holy Trinity (Kerouac and Bukowski) are to be found here, but then those two didn't live in Colorado. Anonymous is everywhere, even the junkyard. In 1984, the GL was the top trim level of the Subaru wagon, and the MSRP on this car was $8,168. That's about 19 grand in 2017 dollars. The going rate for a hooptie '84 GL wagon in 2017 is about $250. This car has manually-actuated four-wheel-drive, rather than the center-differential-equipped all-wheel-drive you'll get with your 21st-century Subaru. This meant that drivers were supposed to use front-wheel-drive on dry asphalt and four-wheel-drive on snow or dirt, but many didn't understand the concept and tore up their tires and/or powertrains by running 4WD at all times. These cars would get you to the slopes every time, and they'd do it cheaply enough for you to afford your preferred intoxicants once you got there. This car's 34 years on the road are done, but many of its kind remain. Related video: