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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 recalls WRX and Forester 2.0XT for turbo intake problem

The Basics: Subaru will recall 18,200 examples of the 2015-2016 WRX and Forester 2.0XT. The WRX's have production dates between April 10, 2015, and October 21, 2015, and the Foresters come from April 10, 2015, to October 20, 2015. The Problem: The turbocharger intake duct can crack, which could cause the engine to run rough or stall. According to Subaru, this problem happens because a supplier used an incorrect material for a specific production lot of parts. Accidents/Injuries: None reported. The Fix: Dealers will inspect the turbocharger air intake duct. If the part is from the affected lot, then owners get a replacement. If you own one: Subaru hasn't yet told the National Highway Traffic Safety Administration when this recall would begin. RECALL Subject : Turbocharger Intake Duct Crack may cause Stall Report Receipt Date: MAR 21, 2016 NHTSA Campaign Number: 16V162000 Component(s): ENGINE AND ENGINE COOLING Potential Number of Units Affected: 18,200 All Products Associated with this Recall Vehicle Make Model Model Year(s) SUBARU FORESTER 2015-2016 SUBARU WRX 2015-2016 Details Manufacturer: Subaru of America, Inc. SUMMARY: Subaru of America, Inc. (Subaru) is recalling certain model year 2015-2016 WRX vehicles manufactured April 10, 2015, to October 21, 2015, and Forester 2.0XT vehicles manufactured April 10, 2015, to October 20, 2015. The turbocharger air intake duct may crack and possibly result in an engine stall. CONSEQUENCE: An engine stall increases the risk of a crash. REMEDY: Subaru will notify owners, and dealers will inspect the turbocharger air intake duct, and replace it as necessary, free of charge, depending on the lot number found on the duct. The manufacturer has not yet provided a notification schedule. Owners may contact Subaru customer service at 1-800-782-2783. Subaru's number for this recall is WTA-62. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov. Related Video:

Subaru supplies running low as automaker struggles to keep up with US demand

Consumers in the US are gobbling up Subaru models, a trend that may result in dealer shortages if the Japanese automaker isn't able to meet the surging demand. A quick look at the numbers reveals a 25.2 percent year-over-year jump in April US sales, and a 17-percent gain for the first quarter of 2013. The sales are so strong that the company's CEO, Yasuyuki Yoshinaga, told the Wall Street Journal that Subaru will exceed its 2016 goals (380,000 US units sold) by the end of the company's current business year. The US market has grown to be one of Subaru's best, with the company now logging about half its global sales on our shores.
While strong sales are good problem to have, the automaker has relatively limited production capacity, which may leave dealers with sparse inventory. Certain models, such as the popular Forester crossover (shown above), could hit 10,000 units this month with the plant at full capacity (far above its target of 8,000 units). On average, the US car industry has a 60-day supply of vehicles on hand, but inventory for the new Forester is at just 16 days. "If this situation persists, we'll face a supply shortage," Mr. Yoshinaga told the WSJ.
Despite being one of the smallest Japanese automakers by volume, this is all positive news for Subaru and parent Fuji Heavy Industries, which projects a second straight year of record operating profit thanks to strong US sales and a weaker yen.