Investigators Build Supplier Antitrust Case
It could take a year or more to conclude investigations into a group of automotive suppliers, some with Michigan offices, over allegations of antitrust activities, experts told The Detroit News.
But coordinated efforts by investigators on three continents and the somewhat rare step of using raids to get information suggest some weight behind the suspicions of a cartel among suppliers of electronic auto parts, specifically wire harnesses, said Ted Bolema, a principal with Anderson Economic Group in East Lansing and former attorney with the antitrust division of the Department of Justice.
The investigation came to light Feb. 23 when FBI agents executed search warrants at the offices of Yazaki North America in Canton Township; Lexington, Ky.; and Columbus, Ohio; as well as U.S. offices of Denso Corp. in Southfield and TRAM Inc., a division of Tokai Rika Co., in Plymouth Township. International agents later searched supplier offices in Japan and in Europe.
While investigators won't comment on ongoing cases, the potential impact could affect Michigan and workers for the companies affected by the investigation.
Special Agent Patrick Lentz of the Detroit FBI said there has been no change to the status of the ongoing investigation.
The U.S. Justice Department said the raids were related to an international investigation into possible anti-competitive practices by electronic components suppliers, specifically "the possibility of an anti-competitive cartel," spokeswoman Gina Talamona said.
In Japan, searches were conducted at Yazaki, Sumitomo Electric Industries Ltd., Furukawa Electric Co. and other Japanese electric cable makers.
In Europe, Leoni AG of Germany was visited by European Commission investigators. SY Systems Technologies GmbH, a joint venture between Yazaki and Continental AG, also is under investigation. Lear Corp. and Delphi Corp. have been contacted by the European Commission.
More Industry

World EV Adoption Set to Grow
A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.
Read More →
Black Book: Weekly Market Update
Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.
Read More →
Pricing Transparency Drives Purchase Consideration
An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.
Read More →
Black Book: Weekly Market Update
Used-vehicle market depreciation was the prevailing story in the wholesale market last week.
Read More →
Smaller Is Looking Better
A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.
Read More →
U.S. EV Market Slowly Stabilizes
U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.
Read More →
Global EV Market Entering New Phase
Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.
Read More →
Black Book Weekly Market Update
The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.
Read More →
Auto Affordability in Context
Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.
Read More →
Black Book: Weekly Market Update
Automotive auction inventory increased last week, giving choosy bidders even more leeway.
Read More →