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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.

Nissan e-NV200 electric taxi comes to Amsterdam

Amsterdam's Taxi Electric liked its two-plus years with an all-Nissan Leaf electric vehicle fleet so much that it just got bigger, or at least with its vehicle choice. The company, which says it's the first private-taxi outfit to boast an all-electric fleet, is going to start adding Nissan e-NV200 electric compact vans to its stable of vehicles. The company started out with its Leaf fleet in late 2011 and has since put about a million miles on the 25 EVs. Nissan said in January that the new electric van will start being tested by FedEx here in the state and it has already been put through the wringer by FedEx in Singapore, Japan and Germany. Last September, Nissan said it was in the "final development phase" of the electric compact van and would start selling it to the public this year, though it wasn't real specific with details. That month, it was also announced that the vehicle, which uses the same drivetrain as the Leaf, would go into taxi service in Barcelona sometime this year. Nissan representatives didn't immediately respond to a request for more details on when the model would start public sales, how much it would cost and what it's single charge range is. Until we hear back, you can check out the official press release below. This summer Taxi Electric becomes the first taxi company in Amsterdam to adopt the zero-emission Nissan e-NV200 Taxi Electric first 100% Nissan LEAF fleet since November 2011 Pioneering Amsterdam-based company have covered 1.5 million km demonstrating Nissan EVs' quality and reliability AMSTERDAM, Netherlands – Taxi Electric will be the first private taxi company to add the new 100-percent electric Nissan e-NV200 taxi to its green-energy zero-emission fleet. The combination of Nissan's innovative zero-emission technology, in the form of the 100-percent electric Nissan LEAF, and Taxi Electric's ground-breaking city transportation model have been a recipe for success since the start of operation in 2011. Now the two companies have teamed up again to build on this success and take the next step forward by introducing the game-changing all-electric Nissan e-NV200 taxi this summer. Amsterdam-based Taxi Electric operates a fleet of 25 Nissan LEAF vehicles. It was the first private taxi service to switch to a fleet of 100% electric taxis in 2011. The Dutch company's fleet of Nissan LEAFs has now amassed a trouble-free 1.5 million km in taxi operations – proof of the electric vehicle's high quality and reliability.

Foreign automakers pay from $38 to $65 per hour to non-union workers

As leaders for the United Auto Workers gather in Detroit for their Special Convention on Collective Bargaining to work out the negotiating stance for this year's new labor agreements with the Detroit 3 automakers, what they most want to do is figure out how to eliminate the two-tier wage scale. However, the lower Tier 2 wage has allowed the domestic automakers to reduce their labor costs, hire more workers, and compete better with their import competition. As it stands, per-hour labor rates including benefits are $58 at General Motors, $57 at Ford, and $48 at Fiat-Chrysler – a reflection of FCA's much greater number of Tier 2 workers. The Center for Automotive Research released a study of labor rates (including benefits) that put numbers to what the imports pay: Mercedes-Benz pays the most, at an average of $65 per hour, Volkswagen pays the least, at $38 per hour, and BMW is just a hair above that at $39 per hour. Among the Detroit competitors, Honda workers earn an average of $49 per hour, at Toyota it's $48 per hour, Nissan is $42 per hour, and Hyundai-Kia pays $41 per hour. The lower import wages are aided by their greater use of temporary workers compared to the domestics. Automotive News says the ten-dollar gap between those foreign camakers and the domestics turns out to about an extra $250 per car in labor, which adds up quickly when you're pumping out many millions of cars. That $250-per-car number is one that, come negotiating time, the Detroit 3 will want to reduce, as the UAW is trying to raise both Tier 1 and Tier 2 wages. Another wrinkle is that the domestic carmakers are considering the wide adoption of a third wage level lower than Tier 2. Some workers who do minor tasks like assembling parts trays kits and battery packs already make less than Tier 2, but the UAW will be quite wary about cementing yet another wage scale at the bottom of the system while it's trying to fight a bigger battle at the top. News Source: Automotive News - sub. req., BloombergImage Credit: AP Photo/Erik Schelzig Earnings/Financials UAW/Unions BMW Chevrolet Fiat Ford GM Honda Hyundai Kia Mercedes-Benz Nissan Toyota Volkswagen labor wages collective bargaining labor costs