Toyo Tire & Rubber Co. was hit with a $120 million fine in a plea deal over alleged price fixing. In addition to the fine, certain Toyo executives will take a hit on their compensation, the company reported.
The plea deal with the U.S. Justice Department, announced Nov. 26, came after months of investigation on claims of price fixing of more than 30 types of car parts. The Justice Department said that Toyo admitted to conspiring to fix the prices of anti-vibration parts sold to Toyota, Nissan and Subaru parent Fuji Heavy Industries., as well as CV joint boots sold to OE supplier GKN Inc.
Toyo is among 22 companies that have pleaded guilty or agreed to plead guilty in connection with the probe. Nearly 30 executives of the various companies have also been charged.
Toyo said in a statement that the company has “been fully cooperating with the DOJ’s investigation, and made this decision after careful consideration of the applicable laws, and the results of the findings from the investigation.”
In addition to the corporate fine, certain unnamed Toyo executives will be penalized by the company.
In its statement, the company said, “To express their remorse and to demonstrate their commitment to compliance with the laws, the directors and corporate officers of Toyo will voluntarily forfeit a portion of their compensation as follows: Representative Directors 30% for three months; other members of the board 20% for three months; outside director and corporate officers 10% for one to three months.”
Additionally, the corporate auditors will voluntarily forfeit a portion of their compensations.
