TOKYO: Japanese and German companies supplying auto parts to Hyundai Motor Group are facing an anti-trust probe over allegations of price-rigging, the Fair Trade Commission (FTC) said.
It said it is investigating five auto parts manufacturers headquartered in Japan and Germany to determine whether they colluded to supply parts at higher-than-market prices.
If price-fixing occurred, it would have added hundreds of billions of won to the cost of producing vehicles, thus raising consumer prices.
“We are looking into allegations that several Japanese and German auto parts makers colluded to supply their products to Hyundai and Kia at higher prices,” an FTC official said. “The investigation covers a wide range of auto parts manufactured by these companies. But we cannot disclose who is under the probe, given the sensitive nature of the case.”
The official also declined to discuss what action the FTC might take against them. The agency will likely impose huge fines on those found to have conspired to fix prices, and criminal charges might also be filed.
