Plea Agreement with the United States Department of Justice Concerning Certain Automotive Components

Jan 30, 2012, 18:03 ET from DENSO Corporation

SOUTHFIELD, Mich., Jan. 30, 2012 /PRNewswire/ -- DENSO Corporation concluded a plea agreement with the United States Department of Justice (DoJ) on January 30, 2012 (U.S. Eastern Standard Time), agreeing to pay a fine of US$78 million (approximately 6.1 billion yen) based on charges that it violated antitrust laws in connection with sales of certain automotive components (specifically, certain body electronic control units [body ECUs] and heater control panels*) to one of its customers.  

Since learning of the DoJ's investigation in February 2010, when the DoJ conducted an onsite investigation at the offices of DENSO International America, Inc. (DIAM), DENSO Corporation's North American headquarters, both DENSO Corporation and DIAM (collectively, "DENSO") have cooperated fully with the investigation. The plea agreement requires that they continue to do so.

The fine will have no material effect on the Company's financial forecast for the fiscal year ending March 31, 2012. The payment will be recorded as an extraordinary loss in the third quarter of the fiscal year ending March 2012.

It is DENSO's policy to comply with all applicable antitrust laws. Since learning of the investigation in February 2010, DENSO has taken various measures, including implementing even more stringent compliance rules and even more enhanced compliance training to further ensure that its employees comply with all applicable antitrust laws.

In addition, to emphasize the seriousness of these matters, DENSO Corporation's chairman, president and certain board members and executive directors will voluntarily return 30 percent to 10 percent of their compensation for a three-month period starting in February 2012.

DENSO is committed to compliance with all applicable antitrust laws around the world.

*For editors' notes:
Body ECUs are in-vehicle computers that control the power supply to certain electrical components and systems, such as smart key systems, mirrors, lighting and security systems. Heater control panels are operational panels incorporating buttons and switches, which control cabin air conditioning.

SOURCE DENSO Corporation