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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.

Ford Escort Concept goes back to basics

Here's the thing about China: The folks buying cars there have a very different set of standards than shoppers in many other markets around the globe. While we all drool over hot metal with bold designs, and while we appreciate automakers going an extra step to inject even their cheapest offerings with aggressive and interesting cues, that sort of sheetmetal sex appeal doesn't always sell in the People's Republic. Case in point is Jaguar, which may be designing a more traditional-looking version of its XJ for the Chinese market, or more to the point of this story, Ford currently sells the less-exciting, last-generation Focus compact in China right alongside the new one.
So consider this new Shanghai-bound C-segment concept a preview of what's to come for that more traditional, budget-minded, less-sexy market. More proof of this pudding: Ford's even calling this concept the Escort - a nod to the Blue Oval's compact car days of yore, and a name that stirs up thoughts of basic, affordable transportation rather than great driving dynamics or bold design. "Customers in China described seeking a vehicle that is stylish - but not one that is arrogant or pretentious," Ford states. And this new Escort concept previews a possibility of providing exactly that for this rapidly expanding automotive market.
What you're looking at, then, is one of the most simple Ford designs we've seen of late, though it still incorporates all of the automaker's latest DNA. The signature hexagonal grille is front and center, flanked by attractive LED headlamps and chrome-rimmed foglamp housings. The entire car's design focuses on clean, smooth surfaces, with one strong character line flowing from front to back just below the beltline. We will say that the car looks decidedly more premium from the rear view, where narrow, horizontal taillamps with an LED accent give the car added visual width. Bland as it may be, it's a handsome little concept, though fear what would likely happen if all of the conceptual details get dumbed down for a production model.

Ford faces class-action lawsuit for selling vehicles without brake override systems

A total of 20 Ford customers are suing the automaker in a class-action lawsuit for selling vehicles "vulnerable to unintended acceleration." According to Reuters, the suit names 30 models built between 2002 and 2010 with electronic throttle control systems but without a brake override system. Those include the 2004-2012 F-Series pickups and the 2005-2009 Lincoln Town Car. Adam Levitt, a partner with the law firm of Grant & Eisenhofer says the plaintiffs in the case want "to be compensated for their economic losses by having overpaid for cars that contained defects." Levitt contends that the plaintiffs would not have bought their vehicles or paid less for them had they known there was no brake override system in place.
Ford began installing brake override systems in its vehicles beginning in 2010. In response to the lawsuit, Ford has pointed to research by the National Highway Traffic Safety Administration that indicated that unintended acceleration is mostly caused by driver error, saying in a statement that, "NHTSA's work is far more scientific and trustworthy than work done by personal injury lawyers and their paid experts."
Belville et al v. Ford Motor Co. will be heard in US District Court in the Southern District of West Virginia.