Japanese auto suppliers to pay price-fixing fine

WASHINGTON — Two Japanese auto suppliers have agreed to pay more than half-a-billion dollars in criminal fines for a price-fixing conspiracy in the sale of parts to U.S. automakers, the Justice Department announced Monday.

Yazaki Corp. agreed to pay a $470 million fine, the second-largest criminal fine obtained for an antitrust violation. The second company, DENSO Corp., agreed to pay a $78 million fine. Four Yazaki executives, all Japanese citizens, will serve up to two years in U.S. prison as part of the deal to plead guilty to one felony count.

The pleas are part of an ongoing investigation that is the largest ever in the Justice Department antitrust division. Sharis Pozen, the division’s acting head, told reporters in a briefing that “pernicious cartel conduct” in the auto parts industry has harmed car buyers and auto manufacturing businesses nationwide. “The numbers that we are talking about here are astronomical,” she said.

Court documents filed in federal court in Detroit say the Japanese companies and executives sold automotive electrical components to automakers in the United States and elsewhere at inflated prices. The Justice Department says they met to monitor and enforce adherence to the bid-rigging and price-fixing scheme from at least January 2000 through February 2010. The Justice Department would not comment on which automakers were affected.

by the conspiracy, how many models were affected and how much the price-fixing scheme inflated vehicle prices.

because the investigation continues. But Pozen said there’s no doubt consumers were hurt financially.