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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.

2018 Subaru WRX STI Type RA First Drive Review | A taste of Japan

PALM SPRINGS, Calif. — Last year, Subaru set a record for the fastest sedan lap at the 'Ring in a race-spec STI Type RA, which completed nearly 13 miles in less than seven minutes. The new 2018 Subaru WRX STI Type RA is inspired by that record-breaker (and those before it), and it will finally come to the United States as a special edition limited to just 500 units. We traveled out to the California desert to test it on mountain roads, as well as a recently built private race track at the Thermal Club. Record Setting Pedigree Subaru built its first "Record Attempt" (that's what the RA stands for) vehicle in 1988, a Subaru Legacy that drove more than 62,000 miles over 18 days at an FIA track in Phoenix. Since then, Subaru has introduced a number of WRX/STI Type RA models, with several attempts to set record laps at the Nurburgring. While Japanese customers got the opportunity to buy consumer versions of the Type RA, fans in the United States never did. Until now. The nameplate finally comes to the rest of us, improving upon an already potent, all-wheel-drive performance sedan for the everyman. The STI already offers 305 horsepower, a forgiving torque vectoring system, and that big, beautiful wing to set it apart. The Type RA takes this even further, providing more refined performance from a familiar package. The cars are currently being built, and will arrive in dealerships soon. Special Equipment Compared to the standard STI, the Type RA is about 68 pounds lighter thanks to a carbon roof and rear wing, BBS 19-inch forged aluminum alloy wheels, the deletion of the rear armrest and swapping of the spare for a tire repair kit. The lighter roof also helps to lower the center of gravity by a fraction of an inch. Other exterior changes include signature STI Cherry Blossom Red highlights on the grille and rear bumper, a front spoiler, black mirrors and Type RA badging. It only comes in three paint colors: WR Blue Pearl, Crystal Black Silica and Crystal White Pearl. Inside, it gets an ultrasuede steering wheel, short-throw shifter, red push-button ignition and a serialized plate to indicate its rarity. Under the hood, the Type RA benefits from strengthened pistons and sodium-filled exhaust valves that better withstand high temperatures, which is important as the number of laps ticks higher on track day. It gets revised ECU tuning, and lower-restriction air intake and exhaust. Finally, it has a 4.5 percent lower third gear ratio.

Toyota, Mazda drop Takata as Mitsubishi, Subaru weigh options

It's not a very good time to be Takata right now. Fresh on the heels of longtime partner Honda ditching them, Toyota and Mazda have both come out and said they will not use the company's airbag inflators if they continue to rely on ammonium nitrate. Bloomberg reports that Subaru and Mitsubishi are also contemplating a divorce. "The inflator using ammonium nitrate produced by Takata will not be adopted by Toyota," President Akio Toyoda said during a briefing today. "What's most important above anything else is the safety and peace of mind of customers." Mazda echoed that position, simply saying it "will not use Takata airbag inflators which contain ammonium nitrate in our new cars." When you lose three huge OEM accounts in as many days, it's certainly going to have a deleterious effect on your fortunes. In Takata's case, that's meant a staggering 39-percent drop in their share price over the last three days. Yesterday alone, the company saw a 6.2-percent fall, Bloomberg reports. As the business publication reports, though, Takata isn't going down without a fight. The company is "considering some plans to survive," including a fundraising plan that will see it potentially offer up additional shares for sale. Still, at least one analyst doesn't see whatever company survives staying involved in the airbag inflator business. "I really don't see how they're going to be able to survive as an inflator manufacturer," Valient Market Research founder Scott Upham told Bloomberg. "When your major clients publicly come out and say that they're not going to use your products anymore, it makes this very difficult to sustain your business." News Source: Automotive News - sub. req.Image Credit: Carlos Osorio / AP Honda Mazda Mitsubishi Subaru Toyota Safety supplier