Japanese automotive supplier, Furukawa Electric Co. Ltd. has decided to plead guilty in response to the ongoing investigation regarding an international price fixing and bid rigging conspiracy. The automotive supplier presented its plea agreement on 29th September 2011 to the United States Department of Justice. The plea states that the company accepts all the accusations levied against it and will pay a fine of $ 200 million.
Furukawa Electric Co. Ltd. claims to have been completely cooperative in the investigation conducted by the U.S. Department of Justice. The serious charges levelled against the supplier of wire harness and related products that are sold in American and other markets include an 8-year long price fixing and bid rigging scam. Wire harnesses and other related products supplied by this company are used in the electrical distribution systems of cars.
The allegations further looped in 3 executives of Furukawa Electric Co. Ltd. namely Junichi Funo, Hirotsugu Nagata and Tetsuya Ukai. The Japanese nationals, who abetted the conspiracy at various times from April 2003 to July 2009, have accepted the charges, and are willing to do jail time in United States, which may vary from one year to eighteen months.
Junischi Funo has served as a Sales Representative, General Manager and Manager at Furukawa's Honda sales division in America. Tetsuya Ukai was designated as Manager, Unit Chief and General Manager at the company's Honda sales division in Japan. The 3rd accused Hirotsugu Nagata worked in the American subsidiary of Furukawa as the General Manager of sales as well as Chief Financial Officer. Reports suggest that Funo and Nagata were engaged in the price fixing conspiracy in the Detroit region of America.
Assistant Attorney General in charge of the Antitrust Division of Department of Justice, Sharis A. Pozen commented, “As a result of this international price fixing and bid rigging conspiracy, automobile manufacturers paid non competitive and higher prices for parts in cars sold to U.S. Consumers.”
