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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.

Toyota U2 urban utility concept inspired by Maker Faire [w/video]

There's a quiet revolution happening in US cities. People want to mix an urban lifestyle with a connection to nature and appreciation for craftsmanship. The result of all of this is folks pursuing things as varied as urban farming, home brewing and the whole maker movement. Toyota thinks it has the perfect concept for these intrepid customers with its new Urban Utility concept that it is debuting during a panel discussion hosted by Make: magazine in San Francisco and debuting publicly on September 20 at the World Maker Faire in New York City.
The Urban Utility concept can best be described as a modern take on the old panel van. Designers from Toyota's Calty Design Research center in California interviewed Maker Faire participants to find out what its users want from a novel vehicle like this. "Toyota saw an opportunity for a new approach to an urban vehicle based on increasing re-urbanization of our cities and urban drivers' desire for flexibility, fun and maneuverability," said Kevin Hunter president of Calty.
On the outside, the Urban Utility doesn't really scream for attention. It's meant to meet users "desire for greater utility but a smaller vehicle footprint," according to the release, but the shape is still very much a van. The designers do try to lend it some panache with the LED headlights up front and checker board side panels. It's really more about utility than looks, though, because the roof can roll back for taller loads, the rear glass retracts into the tailgate, and the whole rear can fold down as a ramp to load stuff more easily into the cabin. Toyota isn't talking about a powertrain yet but claims that the underbody is also especially durable for a long life in the big city.

West Coast labor dispute hampers Japanese automakers' US plants

The ongoing labor dispute between the International Longshore and Warehouse Union and port owners along the West Coast is starting to affect more Japanese automakers building vehicles in the US. The issue already forced Honda and Subaru to take the expensive option of airlifting some parts into the US weeks ago, and according to USA Today, Toyota and Nissan have begun doing so, as well. The choice hasn't been cheap, though, and Subaru's chief financial officer estimated that the decision cost around $60 million more per month than sending components by cargo ship. The effects continue to radiate, according to USA Today, and shortages of some models are possible. Honda is slowing production at its factories in Ohio, Indiana and Canada because the automaker doesn't have enough transmissions and electronics for some vehicles. Toyota already cut back on overtime at some factories. Nissan has only seen a small effect from the issue, though, because of its local suppliers. Dock workers and port owners have been negotiating on a new contract since last year, and the union has organized work slowdowns in response. According to USA Today, the automakers could move shipments to Canada or Mexico, but it would take longer for parts to arrive. News Source: USA TodayImage Credit: Mark Ralston / AFP / Getty Images Earnings/Financials Plants/Manufacturing UAW/Unions Honda Nissan Subaru Toyota shipping port labor dispute