TRW Settles U.S. Price-Fixing Charges

TRW Automotive Holdings Corp.'s German unit has agreed to pay a $5 million criminal fine to the U.S. government and plead guilty to fixing the prices of airbags, seat belts and steering wheels in 2008-2011.

The Dept. of Justice charges that TRW Deutschland Holding GmbH fraudulently inflated the price of parts sold to two unidentified German carmakers for use in vehicles sold in America.

Livonia, Mich.-based TRW says an employee of the subsidiary may face U.S. prosecution on related charges. Analysts note the company also could face sanctions in Europe.

The charges stem from a broad ongoing investigation of price-fixing and bid-rigging by auto suppliers by government authorities in Europe, Japan and the U.S. TRW disclosed a year ago it was a target of the probe.

The company is the seventh supplier to settle with the U.S. Swedish auto safety equipment maker Autoliv Inc. agreed in June to plead guilty to similar charges and pay a $15 million fine. Five Japanese companies and seven of their executives also have entered guilty pleas and agreed to pay fines totaling about $765 million. The executives are serving jail terms of one to two years.