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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 hybrids getting update to improve fuel economy

Ford has announced that it is introducing "calibration updates designed to improve on-road fuel economy for owners of the 2013 Ford C-Max Hybrid, 2013 Ford Fusion Hybrid and 2013 Lincoln MKZ Hybrid."
We can speculate that these changes are at least due in part to lawsuits over mileage claims of hybrid vehicles. The automaker is enhancing 2013 models starting in August by raising their electric cruising speed to 85 miles per hour from 62 mph, optimizing the use of active grille shutters and the climate control system, shortening the engine warm-up period by 50 percent and reducing electric fan speed to minimize the fan's energy consumption.
It bears mentioning that Ford is doing pretty well in the US electrified vehicle market this year. The company claims to have grown its share in the segment by 12 points to 16 percent while taking a high number of Toyota Prius trade-ins in the process. Conversely, Toyota has experienced a five-percent drop in new-Prius sales over the same period. Additionally, Ford states that it has increased its share of the US vehicle market by one percent this year, more than any full-line automaker.

Ford previews new C-Max ahead of upcoming debut

Looking at a Ford Focus? These days you can get it as a five-door hatch, a four-door sedan, or... that's all. European buyers don't even get our sedan, but they do get a wagon. And while the three-door hatch, two-door coupe and two-door cabrio have long since ended production, buyers around the world can also get the company's larger C-Max. And now, like the Focus upon which it's based, Ford is preparing to roll out a new version.
The tall wagon (or small minivan, depending on your perspective) is being treated to what Ford says is "an extreme makeover." Details to accompany the teaser image above remain few and far between, but following the spy shots we recently posted, it looks destined for some of the same visual updates as Ford rolled out on the 2015 Focus, with "even more refinement, practicality and technology."
Like the Mercedes B-Class, which is only available Stateside as an EV, American buyers can only get the C-Max in electrified form, either as the C-Max Hybrid or C-Max Energi. Overseas buyers, however, will be able to choose from a range of powertrain options and two wheelbase lengths - the longer of which boasts seven seats and the Grand C-Max name. (Remember when Chrysler did the same with its minivans?) Both are set to debut on September 17, so watch this space. After that, we'll expect to see it on display at the Paris Motor Show.