Denso US Office Raided By FBI

Paul Niedermeyer
by Paul Niedermeyer

Reuters reports that the Detroit offices of Denso, a major Japanese automotive supplier, has been raided by the FBI as part of an on-going investigation into alleged anti-trust violations. Denso spokeswoman Bridgette Gollinger said the investigation was “absolutely not” related to ongoing recalls by Toyota. Denso supplies accelerator pedals (see above) and other components to the automaker. “We are cooperating with the investigation,” Gollinger said. The FBI raid was first reported by The Wall Street Journal, which said that federal investigators had also searched the Detroit area offices of two other Toyota suppliers, Yazaki and Tokai Rika. Curious coincidence of timing as this happens while Akio Toyoda testifies on Capitol Hill.

Paul Niedermeyer
Paul Niedermeyer

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  • Mr Carpenter Mr Carpenter on Feb 25, 2010

    Very well then, how about some direct quotes from Professor Vieira's article? Conspiracy theory? Um, no. Simple facts as he sees them, yes. "Contemporary politicians recognize no limits to their raw power. Observe that I do not say their “authority” - because to the extent that they act outside of the Constitution, they have no legal authority whatsoever (and, in the strictest sense, no power, either). Yet most of them do imagine themselves entirely outside of the Constitution - at least in terms of the constraints it imposes on them when they act under color of law in the guise of “government”. Indeed, they openly express their disdain for the Constitution." "Finally, when they (the American public) discover that the two major political parties are really one party with an empty cranium and a pair of duplicitous faces, and that changing the political personalities in office does not ameliorate the conditions that arise out of the government’s hare-brained economic policies, they will rebel against this country’s (leaders). A general disdain for legality will become the order of the day. After all, if public officials refuse to obey the Constitution, which is the sole source of their authority, what obligation has anyone else to obey any law that those officials enact or attempt to enforce? "

  • Mark MacInnis Mark MacInnis on Feb 25, 2010

    As a former member of accounting management at THREE Japanese transplant companies in the US, including one of the three that was raided yesterday, I can ask where the hell the Justice department has been for the last 20 years?.....the Keiretsu system is RIFE with anti-trust violations, and tax avoidance....the whole Keiretsu system is based on money accruing at the top of the food chain, i.e, Toyota or Honda. They dictate pricing for all components...right down the auto supply chain. Toyota owns Denso, who owns Tokai Rika, who owns Toyota Tsusho, etc., etc. All of the subsidiaries are operated at a loss or at breakeven....which has the added benefit of keeping wages down, as the subsidiary companies plead poverty, so sorry, can't pay wage increases or bonuses....and benefits. Income is essentially taxed ONCE at the parent level, which means there is no churn of tax revenue thru the system....all profits go up the chain to the paternalistic parent, who make all the decisions and control all the capital...which means since they have the cash, they can expand strategically...they also have their own banks, and the support of MITI in Japan. All of this has allowed them to expand and grow and attack markets predatorily. This system has benefited Honda and Toyota for DECADES....giving them the ability to out-engineer and out-manufacture the US domestics and Europeans with a cost advantage. There is no semblance of arm's-length price negotiations. There is no real opportunity for open-quoting of the parts....any such quoting activity is lip-service to the idea of "competition"...so Honda and Toyota have a price advantage at every level of the supply chain, which accrues to the top. The fact that those suppliers also supply to the other OEM's is smoke and mirrors. In every case I have seen, the cost of parts charged to the other OEM's is higher than the costs charged to the benevolent parent within the Keiretsu.... This anti-competitive activity has been going on since the 1980's....I recognized it and have commented on it on this site, and others, in the past. Now, about the co-incidental timing of this attack on the Keiretsu structure and the simultaneous attacks on Toyota from a safety/quality standpoint? My only comment is que bono? Who benefits? Follow the money and draw your own conclusions....

    • Mr Carpenter Mr Carpenter on Feb 25, 2010

      Precisely how, in real world terms, is what the Japanese do (as you describe) any different than what the Big 3 did in the past? It's just differerent in detail. (This does not make it right for any of them, of course). GM: AC, Delco-Remy, Packard Electric, Rochester, Harrison, Saginaw Gear, much of which was later morphed into Delphi, hived off and partially reabsorbed. Ford: Autolite, Motorcraft, much of which was later morphed into Visteon, hived off and partially reabsorbed. Chrysler: Mopar, Airtemp, etc.

  • Vento97 Vento97 on Feb 25, 2010

    I can see it now: “COPS – at Denso” (Inner Circle music playing in the background): “Bad boys, Bad Boys” “Whatcha gonna do” “Whatcha gonna do when they come for you” “Bad boys, Bad Boys” “Whatcha gonna do” “Whatcha gonna do when they come for you”

  • Angryed Angryed on Feb 25, 2010

    I hope Denso gets what they deserve. I am still angry at them since 2005. I had a sure job with them in Tennessee. They gave me a formal offer after working for them 3 mos. on a temporary basis, and then withdrew it, I believe, because I am a diabetic. I was diagnosed with carpal tunnel by their doctors during my pre-employment physical, but yet I have 3 highly decorated neuro and orthopedic surgeons that tested me and verified that I do not have it. They still withdrew my offer. It is 5 years later, and I still do not have carpal tunnel. You tell me who has the power? Even after the state said I have a case, no lawyer here would take it.

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