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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 confirms new Outback to debut in New York

Performance enthusiasts may think of the WRX and BRZ when the name Subaru comes to mind, but for many others, the brand is best associated with the Outback. The soft-road version of the Legacy (and the Impreza-based Outback Sport that preceded the XV Crosstrek) is a vital product for the Japanese automaker, which has now confirmed it's bringing the latest version to the New York Auto Show in just a couple of weeks from now. There's little to go on from the teaser image above (which you can click to enlarge) and the press release below, which says only that "The all-new Outback is Subaru's flagship crossover model which blends Car-like handling and SUV capability." And that much we knew already. It's safe to assume that, like previous versions of the Outback, the new model (which we recently spied undergoing testing) will be based closely on the latest Legacy, albeit upgraded with a higher ride height, lower body cladding and other off-roading enhancements. Watch this space for more. All-New Subaru "Outback" to Make World Debut at 2014 New York International Auto Show Tokyo, April 3, 2014 – Fuji Heavy Industries Ltd. (FHI), the maker of Subaru automobiles, today announced that the all-new "Outback" (US specifications model) will make its world debut at the 2014 New York International Auto Show (Press day: April 16 and 17; Open to the public from April 18 through 27, 2014). The Outback will be unveiled at the press briefing scheduled for 10:55 AM EST on April 17 at Subaru booth following a speech to be made by FHI President & CEO, Yasuyuki Yoshinaga. The all-new Outback is Subaru's flagship crossover model which blends Car-like handling and SUV capability. The special site opens today at 22:00 (Japan time) on the Subaru Global Site. http://www.subaru-global.com/2014ny.html The site will feature information updates relating to the New York International Auto Show including Subaru's press conference.

Subaru might build WRX hatchback after all

The 2015 Subaru WRX is awesome. Really awesome. We told you as much in our first drive of the new sedan back in December. Honestly, our only complaint about Fuji Heavy's new performance machine is that it's no longer offered as a hatchback - the new WRX is a sedan-only affair, despite the more functional five-door variant accounting for some 50 percent of sales in the car's last generation.
But there's hope on the horizon, if a report from Australia's Motoring.com is to be believed. Speaking with Masuo Takatsu, Subaru's general manager for the WRX, the company is now re-considering putting the "hatch" back in its hot hatch.
"We have received strong interest from the US, where the hatchback was 50 percent (of previous-generation WRX sales), so we're now considering," Takatsu told Motoring, noting that the United States is Subaru's main target for this car. Additionally, Takatsu said the company's decision to only offer the sedan was the result of limited engineering resources, echoing statements we've previously heard from Subaru's US arm.