Japan firms announce pay cuts over cartels in US
September 27, 2013 - 9:59:07 am
TOKYO: Major Japanese auto parts suppliers who were fined a total $740 million dollars after admitting price fixing in the United States announced executive pay cuts Friday.
Nine Japanese firms, including Hitachi Automotive Systems and Mitsubishi Electric, entered plea agreements with the US Department of Justice over separate conspiracies to fix the prices of more than 30 different products, affecting more than 25 million cars purchased by American motorists.
Hitachi Automotive, a subsidiary of engineering conglomerate Hitachi Ltd, will pay $195 million.
Mitsubishi Electric, maker of everything from consumer-use batteries to nuclear power stations, faces a $190 million fine.
A Hitachi spokesman said the firm was in the process of estimating the fine's impacts on its balance sheet.
"As far as (internal) punitive actions, we are considering various possibilities," he said.
Mitsubishi Electric said its president and automotive equipment executives will forfeit between 10 and 20 percent of their earnings for one or two months "to demonstrate the company's commitment to upholding compliance in light of this and other investigations relating to the auto parts issue".
The fines will not affect the company's annual financial forecast for the year to March, Mitsubishi added.
Other firms involved in the plea deal also took similar action. They are: Mitsubishi Heavy Industries, Jtekt Corp., Mitsuba Corp., NSK Ltd., T.RAD Co. Ltd., Valeo Japan Co. Ltd. and Yamashita Rubber Co. Ltd. (AFP)