On Sunday, the Fair Trade Commission (FTC) said that it had decided to obtain 9.2 billion won in fines on 4 auto parts suppliers from Japan for allegedly colluding for maintaining or raising prices of the alternators as well as ignition coils.
The Corporate watchdog said that the firms of four auto parts namely Diamond Electric, Denso Corporation, Hitachi Automotive Systems, and Mitsubishi Electric have colluded for rigging prices of the alternators and ignition coils that were sold in Korea, between the years 2004 and 2014.
Among those four companies, Mitsubishi Electric and the Hitachi Automotive Systems had to pay eighty billion won and 4.1 billion won as fine, respectively. Furthermore, they were also referred to the prosecution.
Denso Corporation and the Diamond Electric had to pay a respective 4.2 billion won and 2.6 billion won as fine.
According to the FTC, Denso, Hitachi, and Mitsubishi agreed to share the related information on the alternators for jointly responding to calls for cutting prices. When the clients of automaker sent their requests for a quotation, the personnel of sales of the 3 firms got together to fix prices.
As a result, the automotive alternators of Mitsubishi were sold to QM5 of Renault Samsung until the production of the model was discontinued in the year 2016.
Hyundai Motor along with its affiliate Kia Motors account for seventy to eighty percent of the domestic demand, whereas the main suppliers of this domestic alternator market are, BorgWarner, Denso, Valeo Group, and Mitsubishi.
Meanwhile, Diamond, Denso, and Mitsubishi agreed on Denso’s right for selling its ignition coils to the Grandeur HG model of Hyundai Motor, and Kia Motors’ K7 VG model until the year 2017.