Plea agreement with the United States Department of Justice in relation to automotive parts
Toyoda Gosei Co., Ltd. (Head Office: Kiyosu City, Aichi) announces that it executed a plea agreement with the United States Department of Justice under which, subject to the approval of the U.S. District Court, Toyoda Gosei will pay a fine of USD 26,000,000 (approximately JPY 2.8 billion) and other matters on the grounds that it violated U.S. antitrust law in connection with the sale of some of its automotive parts to its customers (namely, low-pressure rubber hoses used in automobile engine compartments, high-pressure plastic and resin tubes used in automobile engine compartments and fuel tank modules, and automotive airbags and steering wheels).
The Toyoda Gosei Group has cooperated fully throughout the investigation conducted by the United States Department of Justice. Having comprehensively taken into consideration factors such as the applicable laws and the facts discovered through the investigation, Toyoda Gosei has decided to execute this plea agreement.
Toyoda Gosei is currently in the process of closely examining whether the payment under this plea agreement will have any impact on its consolidated results forecasts, and Toyoda Gosei will promptly disclose any forecast revisions that become necessary.
Also, some of the directors and executive officers of Toyoda Gosei, including the President and Vice Presidents, have decided to voluntarily return 10% to 30% of their compensation for a three month period in response to the seriousness of this matter.
Given that it views compliance with antitrust law as one of its critical management fundamentals, Toyoda Gosei has previously developed a system for compliance. As part of its response to this serious matter, however, since the start of the investigation Toyoda Gosei has sought to ensure that the recurrence of similar violations is prevented, such as by tightening antitrust compliance rules and improving education about compliance with antitrust and other laws.
Further, in response to the execution of this plea agreement, the Board of Directors of Toyoda Gosei passed a resolution renewing the commitment of the Toyoda Gosei Group to never again engage in antitrust violations. Going forward, Toyoda Gosei will further strengthen its compliance systems and endeavor to restore trust in the Toyoda Gosei Group.