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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.

Subaru executive casts doubt on manual transmission future

Some disconcerting news for Subaru fans has come out from the Geneva Motor Show. Subaru's U.K. managing director told Auto Express that he doesn't see the manual transmission as having a future at the automaker. He explained that the company is really focusing on safety, and in turn Subaru's Eyesight technology. As a refresher, that system uses stereo cameras to enable features such as automatic emergency braking, lane keep assist and adaptive cruise control. The feature isn't currently available on manual-equipped Subarus, and the executive said he wasn't sure if the system was compatible. And with Subaru's push for safety and Eyesight, he said that continuing to offer manual cars without the system could undermine that push. This sounds dire at first, but we shouldn't panic yet. First, this is just an executive for Subaru's U.K. branch, not for the global company or the U.S., and car companies don't have the same offerings everywhere. For example, the Crosstrek is only offered with a CVT in Europe, but here in America – land of the free, home of the clutch – Subaru offers a six-speed manual. So, while it is possible that certain regions will have reduced or no manual options, that doesn't mean it would be across the board. View 22 Photos And even if Subaru decided it would phase out manual transmissions on most of its mainline cars, as it did with the Legacy, we can't imagine the company abandoning the transmission for its performance cars. WRX and STI fans would riot in the streets, possibly on their way to buy a next-generation Focus RS or Golf R, and the BRZ, a car built around the idea of driver engagement, wouldn't survive in a market with the Miata. Subaru may want to improve safety, but they're still a for-profit company, and sales of its performance cars would surely tank without a manual option. One more reason not to fret is that, while Subaru doesn't currently have a manual-compatible suite of semi-autonomous safety features, that doesn't mean it's impossible. As it so happens, Mazda offers low-speed automatic emergency braking as a standard feature on all its models in every trim. Mazda also has higher-speed emergency braking, lane keep assist and adaptive cruise control as options, and they are compatible with manual transmission cars. You can order up a top trim Mazda3 Grand Touring with a manual transmission right now. Keeping all this in mind, we think it's highly unlikely that Subaru will abandon the manual transmission.

Subaru might build WRX hatchback after all

The 2015 Subaru WRX is awesome. Really awesome. We told you as much in our first drive of the new sedan back in December. Honestly, our only complaint about Fuji Heavy's new performance machine is that it's no longer offered as a hatchback - the new WRX is a sedan-only affair, despite the more functional five-door variant accounting for some 50 percent of sales in the car's last generation.
But there's hope on the horizon, if a report from Australia's Motoring.com is to be believed. Speaking with Masuo Takatsu, Subaru's general manager for the WRX, the company is now re-considering putting the "hatch" back in its hot hatch.
"We have received strong interest from the US, where the hatchback was 50 percent (of previous-generation WRX sales), so we're now considering," Takatsu told Motoring, noting that the United States is Subaru's main target for this car. Additionally, Takatsu said the company's decision to only offer the sedan was the result of limited engineering resources, echoing statements we've previously heard from Subaru's US arm.