Yazaki, Denso execs to take pay cuts due to price-fixing probe

Dustin Walsh

Published: January 31, 2012 6:00 am ET

Related to this story

Topics Automotive, Injection Molding

DETROIT (Jan. 31, 1 p.m. ET) — On top of the of the $548 million in fines issued by the U.S. Department of Justice Monday, executives from Denso Corp. and Yazaki Corp. will take temporary pay cuts due to their involvement in global antitrust investigations.

Denso, in a statement Monday, said its top executives, including Chairman Koichi Fukaya and CEO Nobuaki Katoh, along with board members, will voluntarily return 10 percent to 30 percent of their compensation for a three-month period, starting next month.

Yazaki Corp. Chairman Yasuhiko Yazaki and President Shinji Yazaki will return 50 percent of their salary over a three-month period.

It’s unclear whether any local executives or board members plan on returning salary.

Denso said its $78 million fine will not affect its financial forecast for its fiscal year, ending March 31, but will be recorded in the next fiscal year.

The two suppliers plan to plead guilty for involvement in antitrust activities involving their global wire harness businesses.

Yazaki has already agreed to pay a $470 million criminal fine — the second largest criminal fine obtained for a Sherman Act antitrust violation — and two of the four executives will enter guilty pleas and could serve terms ranging from 15 months to two years in federal prison under their agreement with Justice.

Denso, which houses its Denso International America Inc. subsidiary headquarters in suburban Detroit, will also plead guilty and pay an additional $78 million in fines.

In February 2010, the Japan Fair Trade commission raided the offices of Furukawa Electric Co. Ltd., in the start of a global probe. Furukawa pleaded guilty and agreed last September to pay fines of $200 million.

The combined pleas on the three companies make the sum of cumulative payments so far among the largest Justice has ever collected in an antitrust case. The probe continues to involve additional companies on four continents.


Comments

Yazaki, Denso execs to take pay cuts due to price-fixing probe

Dustin Walsh

Published: January 31, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Jarden hiring for new plastics plant

December 19, 2014 1:45 pm ET

Consumer products conglomerate Jarden Corp. is hiring plastics technicians for a new operation in Erlanger, Ky.    More

Image

The return of HPM's big presses

December 19, 2014 11:47 am ET

HPM is back in big injection molding machines.    More

Image

Sabic: Rapid demand growth led to Ultem shortage

December 18, 2014 12:06 pm ET

Sabic Innovative Plastics has been increasing production capacity for its Ultem polyetherimide but it still got caught short by increasing demand for ...    More

Auto supplier M-Tek relocating headquarters

December 18, 2014 3:37 pm ET

M-Tek Inc., a subsidiary of Japanese automotive supplier Kasai Kogyo Co. Ltd., will build a new North American corporate headquarters in Murfreesboro,...    More

Image

Indian auto parts maker set to buy assets in Germany, Mexico

December 18, 2014 10:35 am ET

Indian auto parts maker Samvardhana Motherson Gropup is buying the assets of insolvent German plastics car parts producer Scherer & Trier (S&T).    More

Market Reports

Flexible Packaging Trends in North America

Our latest RESEARCH report examines trends in FLEXIBLE PACKAGING impacting the North American market including a review of economic conditions, key drivers of growth, materials pricing, M&A activity, sustainability challenges and the outlook for 2015.

Learn more

Plastics in Brazil - State of the Industry Report

This in-depth report examines the Brazilian plastics industry from a historical and geographical context. Our analysts provide insight on economic trends and forecasts, growing manufacturing sectors that utilize plastics, private investment opportunities, market environment challenges, and innovations in R&D.

Data tables and charts on producer prices, trade, plastics production and end market indicators is also included.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events