Panasonic and Sanyo, its subsidiary company, had pleaded guilty to charges of price-fixing on battery cells and auto parts at the U.S Justice Department. The latter eventually charged the companies with a fine amounting to $56.5 million.
A third company, LG Chem LTD of South Korea, pleaded guilty of the same violation and therefore had to pay a fine of more than $1 million for battery price-fixing.
From September 2003 to February 2010, Panasonic had been charged with three felony charges stating the company’s participation in a conspiracy to raise bids, repair, stabilise and keep the prices of car parts.
These sold parts, including steering angle sensors and steering wheel switches, were eventually sold to Japanese automaker Toyota located in the US and elsewhere.
In 1988, the company had started to engage in the price-fixing of automotive HID ballasts which is used for voltage regulation of car lights. Carmakers such as Nissan, Mazda, and Honda had reportedly been their customers.
Panasonic will have to pay a criminal fine amounting to $45.8 million for its participation in the conspiracy. In addition to that, there are 11 companies and 15 executive officers that pleaded guilty and agreed to pay an amount totalling to $874 million as criminal charges at the conclusion of the investigation on auto parts. Jail sentences will likewise be given to the convicted executives.
In the meantime, the case of Sanyo and LG Chem involved the use of cylindrical-shaped lithium ion battery cells in notebook PC battery packs which began on April 2007 and continued until September 2008. The companies had purposely set the prices for their rechargeable batteries at a level that is considered as predetermined.
The conspiracy has been executed by collecting and exchanging information with an intention to monitor and enforce adherence to prices that are agreed upon. Steps to hide the conspiracy are also identified.
Both Panasonic and Sanyo expressed their apologies and promised to pay the fines. The former also vowed to strengthen its measures of compliance after admitting the serious nature of the offense.
