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DoJ fines Japanese parts firms $740M in massive automotive price-fixing scandal

Nine Japanese suppliers have pleaded guilty in US court over charges of price fixing in the automotive parts industry, resulting in the Department of Justice doling out a total of $740 million of fines, according to a report from Bloomberg. The scandal, which has resulted in General Motors, Ford, Toyota and Chrysler spending up to $5 billion on inflated parts and driving up prices on 25 million vehicles has sent the DoJ hustling into investigations. "The conduct this investigation uncovered involved more than a dozen separate conspiracies aimed at the U.S. economy," Attorney General Eric Holder (pictured above) said during yesterday's press conference.
As the investigation stands, the DoJ has issued $1.6 billion in fines against 20 companies and 21 individual executives, with 17 of the execs headed to prison. Deputy Assistant Attorney General Scott Hammond said, "The breadth of the conspiracies brought to light today are as egregious as they are pervasive. They involve more than a dozen separate conspiracies operating independently but all sharing in common that they targeted US automotive manufacturers."
Big-name suppliers indicted in the investigation include Mitsubishi Electric, Mitsubishi Heavy Industries, Hitachi Automotive and Mitsuba Corporation. A list of fines and other corporations named in the investigation is available at Bloomberg.

Will Toyota lose up to 70% of its workforce in TX relocation?

Toyota's decision to move its US headquarters from its longtime home in Torrance, CA, to Plano, TX, was one of the biggest stories in the automotive industry this spring. With several months since the announcement, more details about the plan have leaked out. It seems that pulling up stakes could mean an even larger shakeup in the Toyota workforce than first thought.
According to Automotive News, Toyota intends to hang onto around 50 percent of its workforce in the move to the Lone Star State. However, even that figure might be optimistic. According to an unnamed insider speaking to AN, there is a fear the actual number could be closer to 30 percent. For comparison, Nissan retained about 42 percent of its workers in its move from California to Tennessee.
The actual percentage making the move is a mystery because Toyota is still rewriting its job descriptions under a single set of guidelines. The changes affect benefits, bonuses and the reporting structure, according to Automotive News, and employees' reactions could play a big role in who decides to go. According to an unnamed worker speaking to AN, the wait is hurting morale. Some people are even applying at the nearby Honda headquarters.

How many Toyotas are potentially affected by seat fabric problem?

When we reported yesterday on Toyota's stop-sale order of certain 2013 and 2014 models due to an issue with the fabrics on models with heated seats not conforming to flammability regulations, one of our many questions was how many vehicles were affected? More importantly, how many of those cars have already found homes?
Kelley Blue Book has the troubling statistics. Every 2013 and 2014 Avalon features heated seats. 6.2-percent of 2013 and 4.5-percent of 2014 Camry sedans, meanwhile, were sold with heated seats. That doesn't seem as bad as 100-percent of the larger Avalon, until you consider the Camry's huge volume - the 5.6-percent average still accounts for a lot of cars. Sienna minivans are heavily affected as well, with a total of 37-percent of 2013s and 46-percent of 2014s fitted with butt warmers. The stop-sale only affects 7-percent of 2014 Corolla models, but like the Camry, that number is rather misleading due to the sheer volume of cars Toyota moves. You can see the entire breakdown of percentages by clicking on the inset image.
According to Karl Brauer, a senior analyst for KBB, this problem comes at the worst possible time. "Given that much of the US is currently in the grips of a record cold snap, there's sure to be high demand for models with seat heaters," Brauer notes. The stop-sale order is a good first step, but it doesn't do anything to inform consumers who currently own the affected models and may, in these frosty temperatures, want to use their seat heaters. "Should owners of those vehicles stop using the seat heaters?" Brauer asked.