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DoJ fines Japanese parts firms $740M in massive automotive price-fixing scandal

Nine Japanese suppliers have pleaded guilty in US court over charges of price fixing in the automotive parts industry, resulting in the Department of Justice doling out a total of $740 million of fines, according to a report from Bloomberg. The scandal, which has resulted in General Motors, Ford, Toyota and Chrysler spending up to $5 billion on inflated parts and driving up prices on 25 million vehicles has sent the DoJ hustling into investigations. "The conduct this investigation uncovered involved more than a dozen separate conspiracies aimed at the U.S. economy," Attorney General Eric Holder (pictured above) said during yesterday's press conference.
As the investigation stands, the DoJ has issued $1.6 billion in fines against 20 companies and 21 individual executives, with 17 of the execs headed to prison. Deputy Assistant Attorney General Scott Hammond said, "The breadth of the conspiracies brought to light today are as egregious as they are pervasive. They involve more than a dozen separate conspiracies operating independently but all sharing in common that they targeted US automotive manufacturers."
Big-name suppliers indicted in the investigation include Mitsubishi Electric, Mitsubishi Heavy Industries, Hitachi Automotive and Mitsuba Corporation. A list of fines and other corporations named in the investigation is available at Bloomberg.

Owner reflects on his $20.91 Toyota unintended acceleration settlement check

Where General Motors and Takata have grabbed many auto safety-related headlines this year with their problems with ignition switches and airbag inflators, a few years ago, a similar sort of scrutiny fell on Toyota for unintended acceleration. After multiple settlements with various parties totaling billions of dollars, the issues seem largely behind the Japanese automaker now. Owners are actually starting to receive their money, but it isn't exactly breaking the bank. Payouts are expected to be between $37 and $125 per person. Computer science student Jonathan Sourbeer received a check for just $20.91, and he considers what that money actually means in an op-ed in The Wall Street Journal. Sourbeer's biggest gripe is that the roughly 85 lawyers in the case are receiving $227 million in attorneys' fees and expenses, while the 25 primary plaintiffs and class representatives receive a total of just $395,270. According to the Frequently Asked Questions about the settlement, Toyota set up a $250 million fund to pay affected owners, as well. The money isn't for injuries or damages but for alleged economic loss to the vehicles. However, Sourbeer says he feels no personal suffering and still has the same car. In addition to the settlement, the automaker obviously has its own legal fees to deal with, as well. Sourbeer wonders how this is all going to affect Toyotas in the future. Obviously, the money has to come from somewhere, and it likely gets amortized over the company's vehicles in the coming years to add a few dollars to each one. That puts the problem back onto customers. Anyone involved in a class-action suit has likely seen this happen first hand. The lawyers take a large chunk of the money, and the rest is distributed in tiny morsels to those actually affected. Unfortunately, Sourbeer offers no solutions beyond saying the system needs to change.

Toyota Camry, Honda Civic inventories mounting as US automakers make inroads

Two of the hottest-selling cars in America aren't quite as hot as they used to be. The Toyota Camry and Honda Civic are both seeing dealer supplies increase in the face of renewed competition from the much-improved Detroit Three.
According to a report from The Detroit News, the Camry's dealer inventory is 15 days higher than its seasonal average, while the Civic is 25 days above average. Things aren't expected to get better for Toyota and Honda, as RBC Capital Markets analyst Joseph Spak marked the two Japanese offerings as "at risk for reduced output."
The Detroit Three, meanwhile, are seeing supplies dwindle as demand increases, especially for the Ford Fusion, which has seen an 18-percent increase in 2013 sales, and the Chevrolet Cruze, which was second only to the Camry in June 2013 sales.