Sat, Jul 20, 2013 - Page 15 News List

US fines Panasonic, Sanyo, LG Chem for price-fixing

AFP, WASHINGTON

Japan’s Panasonic Corp and its subsidiary Sanyo Electric Co have each pleaded guilty to price-fixing involving auto parts and battery cells, agreeing to pay US$56.5 million in fines, the US Justice Department said on Thursday.

A third company, South Korea’s LG Chem Ltd, also pleaded guilty and will pay a more than US$1 million criminal fine for price-fixing for its batteries, the department said in a statement.

According to the three felony charges filed against Panasonic, between September 2003 and February 2010, the Japanese company “participated in a conspiracy to rig bids for, and to fix, stabilize and maintain the prices of” car parts.

The parts — which included steering wheel switches and steering angle sensors — were sold to Japanese auto giant Toyota in the US and elsewhere, the department said.

Starting in 1998, Panasonic also engaged in price-fixing for automotive HID ballasts — a device that regulates voltage for car lights — to be sold to Honda, Mazda, and Nissan car manufacturers.

Panasonic will pay a US$45.8 million criminal fine for its part in the conspiracy.

“Including Panasonic, 11 companies and 15 executives have pleaded guilty or agreed to plead guilty and have agreed to pay a total of more than US$874 million in criminal fines as a result of the auto parts investigation,” the statement said. It said the executives have been or will be sentenced to jail time.

The separate case against Sanyo and LG Chem involved “cylindrical lithium ion battery cells used in notebook computer battery packs from about April 2007 until about September 2008.”

The two companies, it said, agreed “during meetings and conversations” to set the prices for rechargeable batteries “at predetermined levels.”

“Sanyo, LG Chem and their co-conspirators collected and exchanged information for the purpose of monitoring and enforcing adherence to the agreed-upon prices and took steps to conceal the conspiracy,” the department added.

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