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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 punches out 15 millionth Boxer engine

It's a small milestone for our favorite manufacturer of gold-wheeled, all-wheel-drive sedans and crossovers, as Subaru announced that it has built its 15 millionth Boxer engine – a mere 49 years after it installed a tiny, horizontally opposed, four-cylinder mill in the 1966 1000 sedan. The milestone engine powers something a good bit larger than the 1000, which was (ironically considering Subaru today) the brand's first front-drive vehicle. Today's boxer, the so-called FB25 2.5-liter four, was built for the current Legacy and Outback. The 15 millionth Boxer hasn't been the brand's only accomplishment in 2015. The company built its 14 millionth Symmetrical all-wheel-drive system just last month. Subaru has only been at its trademark AWD system for 43 years, and with sales going the way they are, it seems only a matter of time before the Boxer engine is surpassed. Related Video:

2014 Subaru XV Crosstrek Hybrid [w/video]

The butler announcing arriving guests to the hybrid party has just called Subaru's name, at long last. The XV Crosstrek wasn't even supposed to come to the US, but the 2014 XV Crosstrek Hybrid endows it with a suit tailored for our regulatory dress code, adding all that weighty battery goodness to the Impreza-turned-compact-crossover.
Subaru didn't want to say why it sent the XV Crosstrek to the hybrid party first, but the original car itself was an opportunistic play for the European market that has worked out surprisingly well over there and over here. In areas represented by the American flag it's doing about 4,000 sales per month and on pace to hit 50,000 units for all of 2013; that's just another happy chapter in Subaru's generally awesome year that sees it outpacing Volkswagen through the end of October, 347,890 units to 342,962.
The XV Crosstrek Hybrid is the opportunistic play for the 25 percent of Subaru buyers that will be looking for a hybrid as their next vehicle, so sayeth Subaru, and for those outside the fold who are determined to include the word "hybrid" in their purchase but also want some extra ride height, space and all-wheel drive.