Plea Agreement with the United States Department of Justice Concerning Certain Variable Valve Timing Devices
Nov. 14, 2014
Aisin Seiki Co., Ltd. (Aisin) entered into a Plea Agreement with the United States Department of Justice (DOJ), agreeing to pay a fine of $35.8 million (approximately 4.1 billion yen) based on charges that Aisin violated the U.S. Antitrust law in connection with part of the sales of Variable Valve Timing (VVT) devices, an automotive engine component.
Aisin Group has fully cooperated with the U.S. DOJ's investigation, and after comprehensive consideration of the applicable laws and relevant facts, entered into the Plea Agreement as mentioned above.
Aisin regards the situation with the utmost seriousness and will devote every effort to restore the trust by taking comprehensive measures to prevent recurrence, including the implementation of an even more stringent business audit system and enhanced training on compliance with relevant rules and regulations, including competition law.
Considering the seriousness of the effect this matter may have to the company, and to demonstrate the commitment to prevent the recurrence, Aisin's Representative Directors and certain board members and executive officers will voluntarily forfeit between 30 percent and 10 percent of their earnings over a period of three months, depending on their positions.
Aisin will record the abovementioned amount to be paid as an extraordinary loss in the third quarter of the fiscal year ending March 2015. This will not have material effect on the company's financial forecast for this fiscal year ending March 2015.
Aisin expresses sincere regret for the concern this matter has caused our customers, shareholders, and other stakeholders.