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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 previews Levorg concept ahead of Tokyo reveal

When I was a kid I went with my family to a Subaru dealership. My brother, being clever as he is, pointed out that Subaru backwards spelled "you're a bus." The portly salesman was not amused, and we bought a Passat instead. Fast forward a couple of decades and we can't help but wonder if Subaru wasn't thinking the same thing when it named its new concept Levorg, which spells "grovel" backwards. The company itself says the name is a combination of the words "Legacy," "Revolution" and "Touring," but one way or another, that's what they're calling it, and here are the first preview images and details on the concept which Fuji Heavy will unveil at the Tokyo Motor Show this year.
Designed to combine the feel of a sports car with the practicality of a touring car, the Levorg looks set to preview the next step in a long line of performance-oriented Subaru wagons. It packs a 1.6-liter turbocharged boxer four and next-generation EyeSight technologies in what looks to be a svelte yet muscular form that could point the way forward for the next Legacy.
The Levorg, however, is not the only concept which Subaru will reveal in Tokyo this year. The Japanese automaker has also revealed plans to unveil the Cross Sport Design Concept (which could preview the replacement for the discontinued Tribeca), the Crossover 7 Concept (which looks like a taller version of the Legacy wagon with an apparent third row of seats), and an Evolution version of the Viziv concept presented in Geneva earlier this year. Scope them out in the gallery above and press release below.

Subaru recalling over 8,000 cars for Takata airbag inflators

We have one more automaker to chalk up recalling Takata airbag inflators. Subaru is now throwing its hat in the ring by repairing 8,557 vehicles nationwide for faulty front passenger inflators. According to the Defect Notice from the National Highway Traffic Safety Administration, the problem affects 3,151 examples of the Legacy, Outback and Baja from the 2003 and 2004 model years and 5,406 units of the Impreza, including the WRX and STI (pictured above), from the 2004 model year.
As we all know by now, it's possible for the inflators to explode during airbag deployment possibly affecting not only the bag's inflation but also potentially spraying metal shrapnel at occupants. All of the affected vehicles will receive new passenger side inflators at no charge to the owner.
Seven automakers in the US announced recalls for the problem in late June affecting an estimated 2.1 million vehicles. Unlike some of the companies, Subaru is repairing all of the affected models in the US, rather just in certain warm-weather states. According to company spokesperson Michael McHale to Autoblog the reason is that "it was simpler to get everybody in there and make sure it was done." The replacement inflators should be in by the end of July, he said. Scroll down to read the recall report from NHTSA or download the full defect notice as a PDF, here.