Japan car parts maker Yazaki hit with $46mn penalty for cartel conduct
Date: 2018-05-16   Author: Saif Ali Bepari  Category: #news

Yazaki Corporation, a Japanese car parts manufacturer, has reportedly been fined with a record penalty of around USD 46 million for anti-competitive cartel conduct by Australia’s Federal Court. As per reliable sources, the company had been accused of colluding with a competitor over the supply of wire harnesses used in Toyota Camrys that were manufactured in Australia.

Reportedly, the penalty delivered by the Federal Court is said to be the biggest ever under Australia’s competition and consumer laws. Yazaki was initially fined USD 9.5 million, however, the Australian Competition and Consumer Commission (ACCC) argued it was too low and had appealed against the penalty last year, cite sources.

According to sources, Australia’s Federal Court found that Yazaki had joined hands with Sumitomo Electric Industries to co-ordinate quotes to Toyota for supplying wire harnesses that were utilized in Toyota Camrys. This illegal conduct of the firm, summarized in the case, has reportedly affected the price of wire harnesses in the 2006-11 models of Toyota Camrys.

For the record, Yazaki Corporation is regarded as the world’s largest manufacturer of wire harnesses, the electrical systems that send signals and power to various parts of a vehicle.

Speaking on the Federal Court’s decision, Chairman of the ACCC, Rod Sims was quoted stating that the penalties imposed initially by the trial judge were insufficient to effectively prevent Yazaki or other businesses from engaging in cartel conduct in the times to come. He further commented that the Commission had argued the quantum of penalty to be between USD 42 million and USD 55 million as to indicate the size of Yazaki’s operations and the grave nature of its collusive demeanor.

The major part of the collusive conduct is said to have taken place in Japan, however, the ACCC conclusively argued that Yazaki should have conformed to the local laws given that the firm conducts business in Australia.



About Author


Saif Ali Bepari

Saif Ali Bepari

Saif currently works as a content writer at Algosonline. A Computer Science graduate who has a zest for writing over coding, commenced his journey in the writing industry as a freelancer. Having had a prior freelance experience, he has tinkered with creative writing, ...

Read More

More from Saif


Post Recommendents

Sirius Minerals inks massive polyhalite supply deal with Cibra Group
Author: Pankaj Singh

Sirius Minerals, the renowned U.K. based fertilizer development company, has recently announced its largest supply deal for its £3.2bn York Potash mine. According to sources familiar with the matter, the long-ter...


Agriculture Masterbatch Market to grow 6% CAGR over 2018 to 2024
Author: Rahul Varpe

As per reliable estimates, the Masterbatch Market for automotive sector is projected to surpass a CAGR of 5.8 percent over the next seven years. The consistent research and development activities being undert...


Polystyrene Acoustic Insulation Market to surpass $9bn by 2025
Author: Rahul Varpe

Acoustic Insulation Market size worth USD 10 billion in 2015, is predicted to touch USD 22 billion by 2025, recording a CAGR of 6% over the period of 2016-2025.” Acoustic insulation finds extensive application in construction and transportat...