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West Coast labor dispute hampers Japanese automakers' US plants

The ongoing labor dispute between the International Longshore and Warehouse Union and port owners along the West Coast is starting to affect more Japanese automakers building vehicles in the US. The issue already forced Honda and Subaru to take the expensive option of airlifting some parts into the US weeks ago, and according to USA Today, Toyota and Nissan have begun doing so, as well. The choice hasn't been cheap, though, and Subaru's chief financial officer estimated that the decision cost around $60 million more per month than sending components by cargo ship. The effects continue to radiate, according to USA Today, and shortages of some models are possible. Honda is slowing production at its factories in Ohio, Indiana and Canada because the automaker doesn't have enough transmissions and electronics for some vehicles. Toyota already cut back on overtime at some factories. Nissan has only seen a small effect from the issue, though, because of its local suppliers. Dock workers and port owners have been negotiating on a new contract since last year, and the union has organized work slowdowns in response. According to USA Today, the automakers could move shipments to Canada or Mexico, but it would take longer for parts to arrive. News Source: USA TodayImage Credit: Mark Ralston / AFP / Getty Images Earnings/Financials Plants/Manufacturing UAW/Unions Honda Nissan Subaru Toyota shipping port labor dispute

Honda recalling 100k more vehicles to replace airbag inflators

Additional recalls surrounding Takata's faulty airbag inflators seemed to be at an end, and the major issue was getting all of the affected models promptly repaired. However, Honda is voluntarily expanding its safety recall to include another 100,000-plus vehicles. The automaker is adding 88,549 examples of the 2008 Pilot, 10,868 units of the 2004 Civic and 5,454 vehicles of the 2001 Accord to replace the driver's side front inflator. According to documents submitted to the National Highway Traffic Safety Administration, Honda found these vehicles through its process of matching Takata part numbers to individual VINs to make sure every potentially affected vehicle was found. Both model years of the Accord and Civic are already included in the campaign, but the 2008 Pilot is new to the list. The company is clear in its announcement that there are no reports of inflator ruptures in the crossover, though. This expansion takes Honda's airbag-related recall total to roughly 5.5 million vehicles in the US. When these airbags rupture, they can spray metal fragments with enough force to injure or even kill people. The automaker also has an advertising campaign to get the word out to owners that having this problem repaired is vital to their safety. Statement by American Honda Regarding Expansion of National Safety Improvement Campaign: Driver's Front Airbag Inflator Supplied by Takata Mar 19, 2015 - TORRANCE, Calif. 2008 Pilot and certain 2001 Accord and 2004 Civic vehicles added under new NHTSA campaign number 15V-153 Honda will voluntarily expand its December 2014 national Safety Improvement Campaign (NHTSA No. 14V-351) affecting certain 2001 through 2011 Honda and Acura vehicles in the United States to include 88,549 Pilot vehicles from the 2008 model year, 10,868 specific 2004 Civic vehicles and 5,454 specific 2001 Accord vehicles. While certain 2001 Accord and 2004 Civic vehicles were previously included in 14V-351, no 2008 Pilot models were included before this addition. Honda has not received any claims of airbag inflator rupture in 2008 Pilot models. Since this expansion of the national Safety Improvement Campaign is taking place in a new year, it will be identified separately by the NHTSA as No. 15V-153, but the same repair, replacement of the driver front airbag inflator, free of charge, will apply to these additional vehicles nationwide. With this expansion, a total of approximately 5.5 million vehicles will be covered by 14V-351 and 15V-153 combined.

Kayaba, Sumitomo to pay millions for price-fixing in US

Kayaba Industry Co, which does business in the US as suspension parts maker KYB, and Sumitomo Electric Industries are facing payments in the millions to settle price-fixing cases about the components that they make. As part of the Department of Justice's ongoing crackdown of price fixing in the auto industry, KYB agreed to pay $62 million and pleaded guilty to conspiracy to set the cost of shock absorbers from the mid '90s through 2012. The company allegedly worked with co-conspirators to keep the cost of the parts high, and those components then made it into vehicles from Honda, Kawasaki, Nissan, Subaru, Suzuki, and Toyota. "Any collusive agreement among competitors to restrict price competition undercuts our free enterprise system and violates the law," said Carter M. Stewart, US Attorney of the Southern District of Ohio, in the DoJ's announcement. Over the past few years, the DoJ has brought cases against 37 parts suppliers and 55 executives, leading to over $2.6 billion in fines. The investigations haven't always been so successful – some of the Japanese execs fled from the US to avoid prosecution. Critics allege that price fixing is simply how business is done. According to Automotive News, Sumitomo Electric Industries is also facing a $50 million settlement in a civil lawsuit that's related to price fixing of parts like wiring harnesses and heater control panels. The plaintiffs include owners and dealers that purchased vehicles with these parts. The company asserts that the violations are from before 2010, and it now has different process in place to avoid further violations. KYB Agrees to Plead Guilty and Pay $62 Million Criminal Fine for Fixing Price of Shock Absorbers Kayaba Industry Co. Ltd., dba KYB Corporation (KYB) has agreed to plead guilty and to pay a $62 million criminal fine for its role in a conspiracy to fix the price of shock absorbers installed in cars and motorcycles sold to U.S. consumers. According to charges filed today, KYB conspired from the mid-1990s until 2012 to fix the prices of shock absorbers sold to Fuji Heavy Industries Ltd. (manufacturer of Subaru vehicles), Honda Motor Co. Ltd., Kawasaki Heavy Industries Ltd., Nissan Motor Company Ltd., Suzuki Motor Corporation and Toyota Motor Company, including their subsidiaries in the United States.