U.S. May Be Close to More Price-Fixing Charges

The U.S. Dept. of Justice may be preparing to bring criminal charges of bid rigging against more auto suppliers in coming months, Automotive News reports.

Since September 2011, 13 suppliers pleaded guilty in the U.S. to conspiring to fix prices of automotive components ranging from airbags and electronics to steering wheel switches and wire harnesses.

Lawyers tell AN that a U.S. District Court judge in Detroit may decide by next week whether to grant the government's petition for a one-year stay on some elements of a parallel federal civil lawsuit. The stay would block discovery and depositions by plaintiffs' attorneys in areas where the Justice Dept.'s investigation is ongoing.

The criminal and civil cases all allege that supplier wrongdoing forced carmakers to pay inflated prices for parts, thus resulting in higher vehicle prices paid by American car buyers. The would-be class-action lawsuit seeks damages from involved suppliers on behalf of the latter.

The Justice Dept.'s settlements with suppliers have involved cooperation agreements and combined fines of $885 million. Fifteen executives from those companies have pleaded guilty and agreed to serve U.S. prison terms of between one and two years.

AN notes that a second wave of charges is likely as companies that previously pledged cooperation implicate others. The legal actions stem from a probe by European, Japanese and U.S. anti-trust authorities into auto supplier cartels.