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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.

Suzuki, please come back and bring the Alto Works with you

The list of JDM vehicles we'd love to see imported into the United States keeps growing. But if there's one we could wish for in 2016, we dare say it's the one you see here. It's called the Suzuki Alto Works, and it looks like an absolute riot. The Alto, for those unfamiliar, is a tiny little Kei car. It rides on a 97-inch wheelbase and weighs less than 1,350 pounds, which makes it not only smaller than a three-door Mini, but also about half its weight. All it needs is a 660cc inline-three to pull it around the streets of Tokyo. And perhaps best of all, where the previous Alto adopted rounded, cutesy styling, the new model introduced in Japan a year ago takes a more squared-off, industrial design that looks much better to our round eyes. Suzuki made a punchy little Alto Turbo RS version (which you can scope out in the extra gallery below) that increased output to a still-puny 64 horsepower and 70 pound-feet of torque. And it won multiple awards for its compact, fun-to-drive nature. But now the Japanese automaker has made the Alto even more enticing with the new Works model. It's based on the aforementioned Turbo RS, but packs some key upgrades. Where the Alto Turbo RS was only available with an automatic, the new Alto Works can be had with a short-throw five-speed manual – driving either the front wheels alone or all four. Suzuki also boosted output modestly to 74 lb-ft, improved the throttle response, and recalibrated the steering for better accuracy. New 15-inch wheels are fitted to a retuned suspension with KYB shocks. It's all done up in a gunmetal finish with black trim, red-painted front calipers, and an interior with Recaro racing buckets, steel pedals, red stitching, and a boost gauge that changes color from white to red as it spools up. All of that can be had from only 1,509,840 yen, which may look like a lot, but translates to just $12,500 at current exchange rates. If only Suzuki still sold in the US market, because it does some of the best little hatchbacks around. And the new Alto Works looks like it'd be a hoot to drive.

New investor allows Suzuki to fend off VW

After years of legal wrangling, the long-soured partnership between Volkswagen and Suzuki looks finally to be coming out of arbitration, according to Bloomberg. As a sign of the Japanese brand's improved fortunes, hedge fund Third Point LLC recently bought an undisclosed stake in the company. The investor reported seeing a major opportunity in the successful Maruti Suzuki business in India. As an investment, the only major problem that Third Point found with Suzuki was its legal battle with VW. "The company's greatest asset is its low-cost manufacturing process for vehicles for the emerging market consumer," the fund said in a letter, according to Bloomberg. Third Point reportedly also wants a seat on Suzuki's board, despite being a minority shareholder. The alliance between Suzuki and VW goes back to late 2009. In the deal, the Japanese brand was meant to get access to cutting-edge tech, and the German firm got a helping hand towards better establishing itself in India and Southeast Asia. Things didn't go as planned, though. Less than two years later, Suzuki's boss publicly derided the deal. Eventually, the allegations started going back and forth, and the two have been working out a way to untangle practically ever since. Among the biggest issue has been how to get back the 19.9 percent stake that VW purchased. According to Bloomberg, the arbitration is now technically over. With the divorce nearly final, the two sides are just waiting on a decision on how to split things up. Suzuki may even just buy VW's stake to get the shares back.