The federal government’s probe into price-fixing in the U.S. auto supply chain could result in jail time for more executives and potentially billions of dollars in fines, lawyers representing local suppliers in the investigation said today at an industry event in suburban Detroit. Hit the jump to read the rest of the story.
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Furukawa Electric Co.’s recent $200 million fine and jail time for three of its executives in relation to wire harness price fixing is just the tip of the iceberg, the lawyers said at the Society of Automotive Analysts event. One lawyer said the probe will go beyond wire harnesses.
Matthew Leitman, principal at Detroit law firm Miller, Canfield, Paddock and Stone, said more pleas are in the works that will involve jail time for executives and fines substantially larger than Furukawa’s.
The fines potentially at stake in the probe could be in the billions, raising the stakes for the long-term impact on the supply chain.
Leitman said the raids instantly triggered a race among suppliers to cooperate with the U.S. Department of Justice because of U.S. regulations.
