Japanese and German bearing manufacturers have faced fines totaling 2 billion won (US $1.7 million) for collusion, the nation’s antitrust watchdog said Monday.
In response to Korean auto-part makers’ attempts to cut costs by diversifying their suppliers, the global manufacturers have avoided competition by fixing their bearing prices through telephone calls and face-to-face meetings between executives.
According to the Korean Fair Trade Commission (KFTC), Tokyo-based NSK and Osaka-based JTEKT agreed in 2002 to fix the prices of their bearings used for Hyundai Santa Fe and Tucson SUVs by the end of 2009.
The KFTC also revealed non-aggression treaties among the four manufacturers ─ NSK, JTEKT, NSK’s Korean affiliate and German-based Schaeffler Group’s Korean unit. The two local subsidiaries are 100 percent owned by their global headquarters.
Full Content: Korean Herald