Local manufacturer’s parent company investigated for alleged price fixing

By JIM BROOKS
Nelson County Gazette

Thursday, April 5, 2012, 11:30 a.m. — The parent company of a Bardstown auto parts manufacturer is under investigation by Japanese and U.S. authorities for alleged violations of anti-trust laws.

Mitsuba Corp. is one of four Japanese manufacturers under investigation in the U.S. and Japan for allegedly taking part in a price-fixing cartel in violation of the Sherman Antitrust Act. News reports indicate the price-fixing may date back to 2002, the current price-fixing investigation began last July. The investigation is ongoing by investigators in both the U.S. and Japan.

Mitsuba Bardstown, a subsidiary of Mitsuba Corp., employs about 100 people in the manufacture of windshield wipe, power window and cooling fan motors and cruise control devices at its facility on Withrow Court.

Price fixing is a conspiracy between business competitors to set their prices to buy or sell goods at a certain price point. Price fixing prevents other businesses from being able to compete against the businesses in the price fixing agreement, and deprives consumers from the benefit of competition among suppliers.

In July 2011, the Japan Fair Trade Commission raided the corporate offices of Mitsuba Corp. and three other manufacturers companies under investigation: Koito Manufacturing Col, Stanley Electric Co, both based in Tokyo, and Ichikoh Industries Ltd. based in Isehara. Mitsuba. Corp. is based in Kiryu. The FBI also initiated is own investigate into alleged price fixing at the company’s U.S.-based subsidiaries.

According to a March 13th story posted on the Mainichi Daily News, the four companies allegedly fixed prices of their products and picked successful bidders in advance for bids for automotive products. The four companies have a 90 percent market share of Japanese automotive lighting products. The newspaper said Mitsuba Corp. and Ichikoh were cooperating with investigators. Other media reports state additional Japanese parts manufacturers are also under investigation for price fixing.

Mitsuba Bardstown is one of three Mitsuba plants that make up American Mitsuba, which is based in Novi, Mich. Mitsuba’s other manufacturing sites are located in Mount Pleasant, Mich., and Monroeville, Ind.

Mitsuba Bardstown purchased Jideco of Bardstown in 2002. It was merged with Mitsuba in 2007. The manufacturing plant is located at 901 Withrow Court.

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