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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.

2014 Subaru XV Crosstrek Hybrid finally adds gas-electric option to the brand [w/video]

For a company that does a pretty great job of tying its vehicles to the environment - or, better said, to people who like to actually get out into the environment - Subaru hasn't exactly been a leader in green vehicle production. In fact, it's 2013 and the company is finally releasing its first-ever production hybrid, the XV Crosstrek Hybrid. Tom Doll, Subaru's executive vice president, admitted as much at the unveiling today at the New York Auto Show: "We at Subaru were not the first to market with a hybrid, but we sure made sure we did it right."
That may be, but for now the automaker doesn't want to tell us all the details of how right it is. We do know that the powertrain takes Subaru's 2.0-liter boxer engine and adds in a 13.4-horsepower electric motor and continuously variable transmission. All-wheel drive will be, of course, standard, and Subaru promises the XV Crosstrek Hybrid will offer the "same utility and versatility as the gasoline model," including 8.7 inches of ground clearance. The hybrid does weigh 300 pounds more, though, which required a re-engineered chassis.
The motor can move the lifted Impreza in all-electric mode up to 25 miles an hour (distance not specified). Subaru isn't talking precise fuel economy numbers, either, just that it will be the "most fuel-efficient all-wheel-drive crossover in America" and will unsurprisingly have start-stop functionality. We do hear, though, that the hybrid will get around 10-percent better fuel economy than the standard gas-only XV Crosstrek. The most efficient version of that car, the one with the CVT, gets 25 miles per gallon in the city, 33 highway and 28 combined. Whatever this hybrid XV Crosstrek gets, we expect Subaru'll sell a million in Portlandia. For more, scroll down to watch an official video and read the press release.

Subaru builds 3 millionth car in America

Subaru announced August 1 that its Indiana factory completed the 3 millionth American-built Subaru, a Lapis Blue Pearl Outback. The company reached the milestone July 28. Subaru has been building cars at its factory in Lafayette, IN, since 1989. The factory opened as a joint venture with Isuzu, but Subaru eventually took full ownership. Subaru first built North American Legacy sedans and wagons at the factory, followed by the Outback, Baja, and Tribeca. Subaru plans to upgrade the Indiana facility to handle increased demand. The company will double capacity from 218,000 units to 436,000 by March 2019. Subaru will add Impreza production toward the end of the year, and begin production of a three-row crossover in 2018. Related Video: