52 Automobile Components Manufacturers Agrees to Pay California $23 Million over Bid-rigging
Automobile News

52 Automobile Components Manufacturers Agrees to Pay California $23 Million over Bid-rigging

A gaggle of 52 automobile parts manufacturers has agreed to pay California $23 million as a part of a decade-old inquiry into antitrust law breaches originating from illegal bid-rigging, the state said Wednesday.

Following a probe by the U.S. Justice Division that started about ten years ago, 46 corporations agreed to pay a total of almost $3 billion in penalties while pleading guilty to price-fixing and bid-rigging in the automobile parts sector.

Over 22 million automobiles are registered in California, the most of any U.S. state.

The largest California deal is with Japan’s Denso for $4.25 million, California Attorney General Xavier Becerra mentioned in an announcement.

In 2013, the Justice Division stated international price-fixing conspiracies affected over $5 billion in automobile parts utilized in U.S. vehicles; in total, more than 25 million vehicles bought by American consumers have been affected.

Denso pleaded guilty to price-fixing back in 2012 and agreed to pay a $78 million fine to settle a Justice Division inquiry. A total of 32 auto components executives pleaded guilty, along with several Denso delegates.

Law enforcement authorities in the U.S. and elsewhere have introduced price-fixing cases associated with seat belts, radiators, windshield wipers, air-conditioning systems, power window motors, and energy steering parts.

A separate deal has been reached for as much as $1.2 billion covering auto purchasers who sued saying the price-fixing and bid-rigging had caused millions of consumers and companies from across the nation to pay more for some new or leased automobiles and replacement components.