Japanese component supplier Yazaki says it will pay off its gargantuan price-fixing fine in five installments starting this year.
Yazaki noted it is doing “everything that is possible” to ensure a repetition of its mammoth US$470m price-fixing fine slapped on it by the US Department of Justice (DoJ) does not happen.
Go deeper with GlobalData
In a toughly-worded review, the DoJ said Yazaki – as well as Denso – had pleaded guilty and would pay a combined US$548m in criminal fines for their involvement in multiple price-fixing and bid-rigging conspiracies in the sale of parts to automobile manufacturers in the US
Yazaki said the company would book the fine as a one-off loss in its accounts for the fiscal year ending June, 2012 but told just-auto it would actually pay off the amount over five years.
“We entered into an agreement with the DoJ that we can pay that fine in five installments over the next five years,” a Yazaki Europe spokesman told just-auto from Germany. “We did that to ensure we continue the necessary investment in development.
“We can divide that US$470m into five pieces, so we will pay one-fifth this year – the first installment [date] I can’t confirm but 2012 will be the first one. We have to do everything that is possible for [the] company to ensure it does not happen again.”
Yazaki chairman, Yasuhiko Yazaki and president, Shinji Yazaki, will repay half of their salaries for three months following the plea agreement reached with the DoJ.
As well as automotive wire harnesses, Yazaki develops and manufacturers meters, electronic components and other products for automotive use.
