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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.

Next Toyota Prius may get optional all-wheel drive

We've been hearing rumors about the next generation of the Toyota Prius for the last couple of years on a pretty regular basis. From the expectation of lithium-ion battery packs with more capacity for electric-only miles to wireless charging and more emotional styling, there's been no shortage of talking points for the car that's expected to see its first light of day at the very end of 2015 (we hope). But one thing we've yet to hear about, until now that is, is all-wheel drive. According to a report from Automotive News, Koei Saga, senior managing officer in charge of powertrain development of the Prius, said in an interview last week, "I think we will possibly do [all-wheel drive]" for the car's next generation. There isn't any further indication on how the AWD system would work, but we'd put our money on something similar, at least in principle, to the E-Four system that just debuted on the 2015 Lexus NX 300h, which uses an electric motor mounted at the rear to power the car's back wheels when the front wheels lose traction. The AN report also repeats a rumor we've heard before – that Toyota may offer two different battery pack options in its next Prius, one using lithium-ion chemistry and one using the nickel metal hydride technology that the Prius has featured from its very beginning. While the automaker has yet to talk efficiency, it's natural to expect more capacity for EV driving from newer lithium-based technology over that of nickel-based packs to go along with what we'd also expect would be a somewhat higher price. We're sure you're just as curious about the next Prius as much as we are, and so we'll leave you with these words, again from Saga: "The batteries will be renewed. Everything will be revised. And I think we will come up with a fuel economy that will surprise everyone."

Performance cars overpower the Detroit Auto Show

At precisely the stroke of noon on Monday, the 2016 Acura NSX rolled on stage at the Detroit Auto Show amid plumes of smoke and dancing lights. The sounds of the powerful engine revving soared to the rafters. It was the second coming of Acura's iconic sports car, and the reveal had all of the expected trappings. Afterwards, champagne corks popped and the bubbly flowed. It was noon in Detroit, but for the green-car movement, it seemed like the clock had struck midnight. That's an exaggeration, but performance was the overwhelming theme of North America's most important show. Ford – which has helped lead the way in smaller displacement engines and early adoption of hybrid powertrains – had more than 1,500 horsepower on stage one point after it revealed the GT concept, the new F-150 Raptor and the Shelby Mustang GT350R. The NSX is technically a hybrid (it has three electric motors), but with 550-plus hp, there's no doubt this Acura was bred on the track. The theme continued throughout the show at nearly every stand. Alfa Romeo showed off the 4C Spider, which is the open-air version of a car that purports to be the spiritual successor of the high-performance 33 Stradale from 1967. On Tuesday, Cadillac is scheduled to reveal the 640-hp CTS-V with the V8 transplanted from the Corvette Z06, and the Lexus was expected to roll out its own V8-powered beast, the 467-hp GS F. For enthusiasts – especially enthusiasts with money – these are halcyon days. But make no mistake, all of this power has a purpose. Ford product chief Raj Nair said the Blue Oval uses high performance cars to develop technologies, like aerodynamics and materials, which are then shared across its lineup. "It's another proof point about how serious we are in developing innovation through performance," he said. Ford, which is rolling out at least 12 performance cars by 2020, said the sporty cars attract younger and more influential buyers to its fold, which can help burnish its image beyond adding sales volume. Toyota is taking a similar approach, senior vice president Bob Carter said, noting the Lexus RC coupe draws people into showrooms and gets them excited about the brand, even if they don't end up buying one. "They provide an aspiration and a halo that provides the attention that gets you noticed in a cluttered market," he said.