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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.

Ford recalls 9,900 vehicles across two campaigns

Ford is recalling a total of 9,885 vehicles in two campaigns. The Basics: In one recall, Ford will recall 9,017 examples of the 2013 Escape with build dates from January 11, 2012, to April 1, 2013, and the 2013-2014 Focus ST produced between May 3, 2012, and October 14, 2013. The Problem: Splices in the engine wiring harness might not have enough compression, and this can cause the manifold absolute pressure sensor to send incorrect signals to the powertrain control module. This issue could cause the engine to stall. Injuries/Deaths: None reported. The Fix: Dealers will replace the current crimped splices with new splices, according to the National Highway Traffic Safety Administration. If You Own One: The repair campaign will begin on January 4, 2016. More Information: Ford recalled the 2013 Escape and Focus ST in August 2014 for the same problem, and this is an expansion of that campaign, according to company spokesperson John Cangany to Autoblog. The Basics: In the smaller of the two campaigns, Ford will recall 868 examples of the 2013 Explorer, Explorer Police Utility, Taurus, Taurus Police Interceptor, Flex, Lincoln MKS, and MKT. The Problem: The fuel delivery module can crack, which would cause a fuel leak. Injuries/Deaths: None reported. The Fix: Dealers will replace the fuel delivery module. If You Own One: Owners should receive notice soon because NHTSA's report says the recall begins in December. More Information: According to Cangany, this recall is an expansion of a campaign from 2013 for these vehicles. RECALL Subject : Engine Wiring Splices may cause Stall Report Receipt Date: DEC 02, 2015 NHTSA Campaign Number: 15V813000 Component(s): ELECTRICAL SYSTEM Potential Number of Units Affected: 9,017 All Products Associated with this Recall Vehicle Make Model Model Year(s) FORD ESCAPE 2013 FORD FOCUS 2013-2014 Details Manufacturer: Ford Motor Company SUMMARY: Ford Motor Company (Ford) is recalling certain model year 2013 Escape vehicles manufactured January 11, 2012, to April 1, 2013, and 2013-2014 Focus ST vehicles manufactured May 03, 2012, to October 14, 2013. Insufficient compression in the engine wiring harness splices to the Manifold Absolute Pressure (MAP) sensor may provide incorrect signals to the powertrain control module (PCM). CONSEQUENCE: The incorrect signals could cause the vehicle to hesitate or the engine to stall, increasing the risk of a crash.

Weekly Recap: Toyota, Mazda team up to 'make cars better'

Toyota and Mazda are teaming for a noble purpose: to "make cars better." That's how the two Japanese automakers termed their partnership, which was announced this week. So what does this actually mean? The companies said they will set up a joint committee to look for areas of cooperation and named safety and the environment as issues they plan to tackle. From a product perspective, it's believed that Toyota is interested in Mazda's Skyactive engine portfolio. In turn, Mazda has its eye on Toyota's fuel-cell and plug-in hybrid technology. While more specifics were not confirmed, the companies said the "agreement will go beyond the traditional framework of cooperation," and it has the potential to be a long-range partnership. "The main purpose of this initiative is to enhance the appeal of our cars," Toyota president Akio Toyoda said at the announcement. Previously, Mazda has licensed Toyota's hybrid tech and assembled compact cars for Toyota in Mexico. Akio Toyoda said these projects "triggered" the automakers to explore further collaboration. Dave Sullivan, product analysis manager for AutoPacific, said the tie-up echoes Daimler's wide-ranging work with the Renault-Nissan alliance. "This could be a well-groomed match due to each having very unique skill sets," he said. OTHER NEWS & NOTES Volvo selects South Carolina for US factory Volvo confirmed this week that it will build its first US factory in South Carolina, with construction set to begin this fall. The company first revealed plans in March, though it didn't announce a site. The plant will have initial annual production of 100,000 units, though the vehicle or vehicles to be assembled were not specified. The factory, located near Charleston, will open in 2018 and ultimately employ 4,000 people. The facility will help Volvo continue its growth strategy, which includes strengthening its presence in the US market, where it wants to sell more than 100,000 cars per year. "Building a plant in the US is a reflection of Volvo Cars' commitment to the US and the key role the US plays in our growth objectives," Lex Kerssemakers, senior vice president, Americas, said in a statement. Ford GT spied on the road The 2017 Ford GT was spotted testing around the Blue Oval's headquarters in Dearborn, MI, this week. The raw body panels were exposed, and they lacked paint or camouflage. It's the first time the GT has been captured on the street after a spring of auto show reveals.