JAPAN – In a massive blow to the automotive industry, Osaka-based Toyo Tire & Rubber Co. Ltd. has been caught in a web of conspiracy and corruption, agreeing to plead guilty to price fixing on auto parts worth $120 million, according to the Department of Justice (DOJ).
The DOJ revealed that Toyo participated in two separate conspiracies involving anti-vibration rubber and driveshaft parts, rigging bids and allocating sales to major car manufacturers such as Toyota Motor Corp. and Nissan Motor Corp. This malicious practice spanned over a decade, from March 1996 until at least May 2012.
In addition, Toyo was charged with fixing the prices of automotive constant-velocity-joint boots sold to GKN plc, a British automotive parts supplier, between January 2006 and September 2010. The DOJ’s relentless pursuit of justice has led to this historic fine, which is part of an ongoing investigation into price-fixing schemes in the automotive parts industry.
With subsidiaries in Kentucky and Georgia, Toyo has agreed to cooperate with the DOJ’s ongoing probe, though their plea agreement awaits court approval. Deputy Assistant Attorney General Renata B. Hesse emphasized the Antitrust Division’s commitment to holding corporations accountable for anticompetitive practices: “Today’s charge is the latest step in our effort to hold automobile part suppliers accountable for their illegal and collusive conduct.”
The tire giant’s actions have been met with severe consequences, as 22 companies and 26 executives have been charged in this ongoing investigation. So far, all 22 companies have either pleaded guilty or agreed to do so, shelling out over $1.8 billion in criminal fines, while 20 of the 26 executives face significant prison sentences.
Charged under the Sherman Act, Toyo now faces a maximum penalty of a $100 million criminal fine. The investigation into this international price-fixing scandal is far from over, as the DOJ and FBI continue their pursuit of justice in one of the most significant antitrust cases in recent history.
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Key Facts
- State: Ohio
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Organized Crime
- Source: Official Source ↗
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