business

Coming apart: Regulators' sweep threatens auto parts business model

5 Comments
By Norihiko Shirouzu and Maki Shiraki

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I do believe there are more than two shock absorber manufacturers in the world. There is a strong possibility that introducing foreign manufacturers into the system would increase price competition.

3 ( +3 / -0 )

The account helps illustrate how some auto parts makers, in particular those from Japan, have colluded for years to inflate parts prices for automakers, dealers and repair shops in a global market with annual sales of over 80 million vehicles, and which are now being exposed in a worldwide sweep by regulators.

I'm shocked. Japanese companies being accused of collusion -- No! Seriously, collusion, or at least stifled competition, is an integral part of Japan Inc. and helped the domestic economy rebound so successfully after WWII, especially since the FTC sees itself more as a protector of J-companies from "unfair" competition, rather than actually protecting consumers. Japan loves a managed economy -- that's how they keep unemployment so low. The problem is really only coming to light because of the global economy, and the fact that managers trained in Japan think they can get away with the same nonsense in other countries.

0 ( +4 / -4 )

I'm shocked. Japanese companies being accused of collusion...

People are only shocked when it occurs outside Japan. There are a few Japanese auto parts executives being ogled by their cellmates in US federal prison right now after being convicted of price fixing in America last year. They would never had been charged had they been doing the same thing in Japan.

Japan's closed economy makes it much easier for this practice to occur, and it is one of the reasons that Japanese goods cost more in Japan than they do in America or Europe.

Go to the movies next week and see how much a ticket costs, and then see if you can find a theater which charges a lower price. You won't, because all theaters in Japan charge the same price. Were these theater owners in America, they would be bunking with the auto parts executives.

6 ( +6 / -0 )

Japan the Onion of corruption, Collusion and Organized Crime... but the Domestic Japanese press through Keiretsu ties and tradition will only scrape the outer layer and not peel deeper for the real truth of goings on in Japan. "Keep them Dumb and Happy".... should be the motto of the Japanese Press.

3 ( +3 / -0 )

I never thought my car rear and front shock absorbers are made by two difference manufacturers. It's amazing if it was true.

0 ( +0 / -0 )

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