Toyo enters anti-trust plea agreement

On 26 November, Toyo Tire & Rubber entered into a plea agreement with the United States Department of Justice and agreed to pay a US$120 million fine based on charges that the company violated US anti-trust laws in connection with sales of automotive anti-vibration rubber products and constant-velocity-joint boot products. The Japanese company says it decided to enter into the plea agreement “after careful consideration of the applicable laws, and the results of the findings from the investigation.”

Company directors and corporate officers will “express their remorse” and “demonstrate their commitment to compliance with the laws” by voluntarily forfeiting a portion of their remuneration, Toyo adds. Representative directors will thus give up 30 per cent of their compensation for three months, other board members 20 per cent for three months, and external directors and corporate officers ten per cent for between one and three months. The plea agreement will not impact on projected 2013 results, however. As an extraordinary loss provision was already recorded for the third quarter of the 2013 fiscal year, Toyo’s financial forecast for full-year 2013 remains unchanged.