Auto suppliers on edge as more charges are likely

Article by Christian Andrei, on October 10, 2011

It’s likely that more charges will be filed over the global price-fixing allegations against Furukawa Electric Co., making the global supply chain wary, according to legal experts. The U.S. government had imposed a $200 million fine on the Japanese supplier.

Three executives are also set to plead guilty before the U.S. District Court in Detroit for their role in global price-fixing among automotive wire-harness suppliers found in three continents. According to the U.S. Department of Justice, this fine is the biggest judgment that its antitrust division has gotten from a Michigan prosecution or an automotive firm.

In fact, it may even rank as one of the 10 largest fines ever, says Autonews. Lee Goldman, professor of antirust law at the University of Detroit Mercy School of Law and former litigation attorney for the Federal Trade Commission, said that other suppliers should be concerned with Furukawa's plea deal. He explained that Furukawa’s actions indicate that the other firms are “big trouble” because Furukawa’s admission of collusion will involve others since it can’t collude by itself.

The suppliers can’t plead the Fifth Amendment anymore on the witness stand if and when someone is tried. Three of Furukawa’s local employees of Furukawa will plead guilty for having violated the Sherman Antitrust Act.

They will serve time at U.S. prisons under a deal with the Justice Department, from between a year and 18 months. These executives are: Hirotsugu Nagata, former CFO of U.S. subsidiary American Furukawa Inc., and Junichi Funo and Tetsuya Ukai. Both of them are former managers in American Furukawa's Honda sales division.

Topics: united states

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Volkswagen Group’s dieselgate saga continues, but it appears the German company would be able to get out of trouble, but it would not be unscathed. This development comes as Volkswagen...
by - January 22, 2017
When a car has been in the market for nearly six years, it loses some of its luster and its customers tend to go for the all-new model with a...
by - January 22, 2017
Remember Zenos Cars, a British carmaker that specializes in designing and building lightweight and high-performance sports cars? If you are wondering how the company is faring with their E10 lightweight...
by - January 21, 2017
Mercedes-Benz has revealed that in 2017, its series 124 coupé will be celebrating its 30th anniversary. While this itself is a significant event, it will also mean that this model...
by - January 21, 2017
BMW’s 550i xDrive has long been considered as one of the most successful business sedans in the world. For the brand, this may not be enough as it has officially...
by - January 20, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries