CRI听力:201 Million USD Fines for Japanese Auto Parts Suppliers

12 Japanese auto part suppliers have been hit with combined fines of over 200-million US dollars under the current anti-monopoly sweep.

The fine is the largest ever issued under the current anti-monopoly laws, which were enacted in 2008.

The National Development and Reform Commission(NDRC) says two of the companies, Hitachi and Nachi, are exempt from the punishment since they were the first firms to report the collusion and provide evidence to regulators.

The fines to ten other companies varied from 290 million yuan to 29.76 million yuan, according to the NDRC.

The eight Japanese auto parts suppliers were found to have frequently met bilaterally or multilaterally in Japan from January 2000 to February 2010, negotiating over prices and implementing agreements over quoted prices concerning orders from the Chinese market.

The four bearing makers were also found to have jointly convened meetings in Japan and Shanghai from 2000 to June 2011 to discuss the timing and scope of price hikes for bearing products in the Chinese market and later raised their price according to their negotiations, the NDRC said.

Such moves by the 12 Japanese auto parts suppliers have violated the Chinese Anti-Monopoly Law, excluding or restraining market competition and thus damaging the rights and interests of downstream manufacturers and consumers, the NDRC said.

For more on this, CRI's Paul James spoke with Cao Can, CRI's financial commentator.

The following are introductions of the 12 Japanese companies:

Sumitomo Electric Industries, Ltd. (SEI)

Founded: 1897

Products: Automotive, Infocommunications, Electronics, Automotive, Infocommunications, Electronics, Environment and Energy, Industrial Materials & Others.

Headquarters: Chuo-ku, Osaka, Japan.

Revenue: ￥2,159,942 million (2013, consolidated)

Employees: 206,323 (2013)

Yazaki Corporation

Founded: 1929

Products: Electrical Distribution Systems (e.g. wire harnesses), Electronics & Instrumentation, and Components. As a first tier supplier, Yazaki interacts directly with car makers such as GM, Ford, Toyota, Jaguar Landrover, PSA, Nissan, Honda etc.

Headquarter:Tokyo, Japan

Denso Corporation

Founded: 1949(Owned by Toyota Group)

Products: automotive components

Headquarter: Kariya, Aichi Prefecture, Japan

Revenue: US$ 43.1 billion

Aisan Industry Co. Ltd.

Founded: 1938

Products: automotive parts

Headquarter: Kyowa-cho, Obu, Aichi, Japan

NSK Ltd.

Founded: 1916

Products: Rolling Bearings, Automotive Bearings, Linear Components, Automotive Steering Systems

Headquarter: Tokyo, Japan

Revenue: US$ 8.5 billion

Employee: over 30,500

Hitachi Automotive Systems, Ltd.

Founded: 2009 (Established by the split-off of Automotive Systems from Hitachi, Ltd.)

Products: Development, manufacture, sales and services of automotive components, transportation related components, industrial machines and systems, etc

Headquarter: Tokyo, Japan

Revenue: ￥ 806.8 billions

Mitsubishi Electric Corp

Founded: 1921

Products: Energy and electric systems, Electronic devices, Industrial automation systems, Home appliances, Information and communication systems

Headquarter: Tokyo, Japan

Revenue: ￥3,567.1 billion (2013)

Employee: 120,958 (2013)

Mitsuba Corp 

Founded: 1946

Products: electrical components for 4-wheeled vehicles

Headquarter: Gunma Prefecture, Japan.

Revenue: ￥140,946 million

Employee: 4,016

Furukawa Electric Co., Ltd.

Founded: 1884

Products: Telecommunications, Energy and Industrial Products, Electronics and Automotive Systems, Metals, Light Metals, Services and Others.

Headquarter: Chiyodaku, Tokyo, Japan

Revenue: ￥931,781 million

Employee: 47,045

Nachi-Fujikoshi Corp

Founded: 1928

Products: Machining, Robots, Components, Materials.

Headquarter: Minato-ku, Tokyo, Japan

Revenue: ￥175.6 billion

Jtekt Corp

Founded: 2006 (merger of Koyo Seiko Co. and Toyoda Machinery USA, belong to Toyota Group)

Products: Steering Systems, Driveline Components, Machine tools, Home accessories, & Ball & Roller Bearings

Headquarter: Osaka, Japan

Revenue: ￥45,591 million

Employee: 43,456

NTN Corp

Founded: 1918

Products: mechanical parts and equipment, such as bearings, constant velocity joints, and precision equipment

Headquarter: Osaka, Japan

Revenue: ￥639.0 billion (2013)

Employee: 5,050