Bridgestone faces $425M fine in parts price-fixing scandal

February 14, 2014
Bridgestone has reportedly agreed to plead guilty and pay a $425 million criminal fine in a price-fixing scandal that has ensnared several major players in the automotive parts industry.

The Japanese company faces one of the larger fines for its role in the alleged conspiracy. The Department of Justice accused the company of colluding with competitors to inflate prices, rig bids and establish market-division agreements.

The investigation focused on rubber anti-vibration components that were sold to Toyota, Nissan, Fuji Heavy Industries, Suzuki and Isuzu, among others. The schemes are said to have been in place from 2001 until at least 2008.

We are pleased with the acceptance of responsibility along with the significant penalty which will be paid by Bridgestone for this conspiracy to fix prices,” said FBI Special Agent in Charge Stephen D. Anthony. “Together with our partners in the Department of Justice’s Antitrust Division, we will continue to combat illegal practices which threaten consumers across the United States.”

Bridgestone previously ran into trouble with the law in 2011, pleading guilty and paying a smaller $28 million fine for price fixing and Foreign Corrupt Practices Act violations related to the marine hose industry. The DoJ suggests the company’s failure to disclose its automotive-industry practices during the first investigation was a factor in the much larger fine.

The Antitrust Division will take a hard line when repeat offenders fail to disclose additional anticompetitive behavior,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement unit.

Aside from Bridgestone, 25 other companies and 28 individuals have pleaded guilty or agreed to plead guilty for price fixing and bid rigging in the automotive parts industry. Total fines currently surpass $2 billion, though the figure could rise as the investigation continues.

Posted in :  Auto
Tags : 

URL for this post : https://auto.de.0685.com/?p=1082

Leave a Reply