TRW Deutschland Holding GmbH, Price Fixing, Michigan 2011

In a shocking turn of events, TRW Deutschland Holding GmbH, a subsidiary of U.S.-based TRW Automotive Holdings Corp., has agreed to plead guilty to price fixing on automobile parts installed in U.S. cars. The Koblenz, Germany-based company has been charged with rigging bids for, and to fix, stabilize and maintain the prices of seatbelts, airbags and steering wheels sold to automakers in the United States and elsewhere.

According to court documents, TRW Deutschland’s involvement in the conspiracy to fix prices of seatbelts, airbags and steering wheels lasted from January 2008 until at least June 2011. The company and its co-conspirators carried out the conspiracy by agreeing, during meetings and conversations, to allocate the supply of seatbelts, airbags and steering wheels and sold the occupant safety parts at noncompetitive prices to automakers in the United States and elsewhere.

The plea agreement is subject to court approval and TRW Deutschland has agreed to pay a $5.1 million criminal fine. In addition, the company will cooperate with the department’s ongoing investigation.

This is the second case filed relating to occupant safety systems sold to auto manufacturers as part of the department’s ongoing antitrust auto parts investigation. Including TRW Deutschland, seven companies and 10 individuals have been charged in the department’s ongoing investigation into price fixing and bid rigging in the auto parts industry.

The Sherman Act, which carries a maximum penalty of a $100 million criminal fine for corporations, has been violated by TRW Deutschland. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

The case is ongoing, and anyone with information concerning the focus of this investigation is urged to call the Antitrust Division’s National Criminal Enforcement Section at 202-307-6694 or visit www.justice.gov/atr/contact/newcase.htm. The FBI’s Detroit Field Office is also assisting with the investigation and can be reached at 313-965-2323.

Mandatory facts: Defendant/respondent name: TRW Deutschland Holding GmbH, Exact criminal charges: Price Fixing, City and state: Koblenz, Germany, Exact date with month/day/year: 2011, Sentence or outcome: TRW Deutschland has agreed to pay a $5.1 million criminal fine and cooperate with the department’s ongoing investigation, Dollar amounts: $5.1 million, $100 million.

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