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Auto parts makers to plead guilty to U.S. price-fixing

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Comments (9)
  • lightlug
    , contributor
    Comments (3) | Send Message
     
    They should all go to jail in the U.S. and pay fines that are double the prices charged to U.S. auto makers.
    26 Sep 2013, 03:01 PM Reply Like
  • redworm
    , contributor
    Comment (1) | Send Message
     
    Why? Because they're Japanese companies? What an ignorant comment.
    26 Sep 2013, 09:50 PM Reply Like
  • Viper740
    , contributor
    Comments (343) | Send Message
     
    Many of them WILL be going to jail in the US, and the total fines were $1.7 billion.
    27 Sep 2013, 04:39 AM Reply Like
  • lightlug
    , contributor
    Comments (3) | Send Message
     
    I'm a old man who is tired of the rot in our criminal justice system as well as the do nothing Congress. As for Obama, I voted for him, but I'd never vote for him again given the opportunity.
    26 Sep 2013, 03:03 PM Reply Like
  • DavidHart
    , contributor
    Comments (38) | Send Message
     
    What does this have to do with President Obama? This began over 10 years ago... As a hint, President Obama has only been in power for 5 years.
    26 Sep 2013, 03:14 PM Reply Like
  • rcpatrick5443
    , contributor
    Comments (812) | Send Message
     
    The ethics of international business remind me increasingly of lines from the 1940 film, "My Little Chickadee." W.C. Fields at the poker table is asked by a stranger, "Is this a game of chance?" Fields responds, "Not the way I play it, no."
    26 Sep 2013, 03:03 PM Reply Like
  • Viper740
    , contributor
    Comments (343) | Send Message
     
    This is not about the ethics of international business. It is about the massive-scale criminal price-fixing behavior of Japanese auto parts manufacturers. (Actually, price-fixing and cartel behavior are endemic in almost every industry inside of Japan; the only reason these guys got caught is because the victims were American, so the FBI got involved.)
    27 Sep 2013, 04:42 AM Reply Like
  • just wonder
    , contributor
    Comments (4) | Send Message
     
    Why does the $740 million go to the government instead of people who bought the cars and had repairs done using those price-fixed parts?
    27 Sep 2013, 08:35 AM Reply Like
  • Tdot
    , contributor
    Comments (5289) | Send Message
     
    It is not so much the occasional individual dealership repair parts that are of concern - those are marked up heavily at the dealership, regardless, since they must be individually shipped around and stocked on shelves waiting for an individual order.

     

    It is the millions upon millions of original parts that were used to assemble the millions of new vehicles at the factories, that were uncompetitively price-fixed to the extent that US automakers paid Japanese parts suppliers billions more than they should have, which certainly became a factor in two of the three big three being driven into bankruptcy, and the third barely avoiding falling off the cliff.

     

    Of course, the US automakers passed on the cost of those inflated parts to the consumers who bought their cars and trucks, but that also resulted in some lost sales to the Japanese automakers who did not have to pay the inflated price for their own supply base parts, and could thus sell their cars cheaper.

     

    That said, why it should go to the "government" instead of the "victims" is certainly valid question. Perhaps some can be used to pay off the $25B or so in unpaid bankruptcy bailout cash given to GM and Fiatchrysler, which will never be fully recovered to benefit the taxpayers who paid the bill.
    27 Sep 2013, 09:30 AM Reply Like
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