Car Parts Manufacturers Collaborate to Raise Price by US Survey

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Automakers hope to reduce prices by competing with auto parts makers to lower prices, which are becoming increasingly difficult. According to a report on the website of the US “Fortune” magazine on June 3, the US Department of Justice’s recent survey found that auto manufacturers tend to collude with each other to raise prices. In response, the U.S. Department of Justice has filed numerous allegations that the alleged parts and components dealers pleaded guilty and accepted fines.

According to reports, up to now, 34 auto parts makers and 27 manufacturers have pleaded guilty. Its fine totals 2.3 billion U.S. dollars (approximately 14.2 billion yuan). And these companies will also face a series of civil lawsuits.

According to reports, the defendant in a similar case was the security system manufacturer Autoliv Inc. The company has accepted a settlement of $65 million (approximately RMB 400 million). In May 22 and February 2014, TokaiRikaCo and Bridgestone , which manufacture automotive heater control panels, were both tried on similar issues and will pay $17.7 million and $425 million, respectively. (approximately RMB 2.6 billion) fine.

The report further pointed out that no matter how many suppliers and executives fall into the law network, the structural contradiction between auto manufacturers and auto parts manufacturers is difficult to reconcile. It is increasingly difficult for automakers to obtain low-cost parts from part manufacturers for profit. On the other hand, auto parts manufacturers want to make a legitimate profit, must rely on excellent product quality and innovation.

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