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:


Login or Create new account to add a comment!


More than three decades ago, the DeLorean DMC-12 was produced by the DeLorean Motor Company. However, production was stopped due to issues within the company. The car itself was decent...
by - October 27, 2016
Tesla is making sure that all models under production will receive the necessary advanced hardware that will allow them to be autonomously driven. The fitment of these advanced hardware to...
by - October 27, 2016
Wondering how fast the 2017 Chevrolet Camaro ZL1 in actual driving? To provide customers a good idea on how fast the 2017 Camaro ZL1 could really get, Chevrolet recently had...
by - October 27, 2016
So, it is official! The new Honda Clarity FCV has the longest verified range of any zero-emissions vehicle currently on the road in the United States. One of the main...
by - October 27, 2016
Many have been anticipating Mercedes-Benz Vans’ newest luxury pickup truck, the X-Class. While Mercedes-Benz has yet to reveal the official production version of the X-Class, it was kind enough to...
by - October 27, 2016