Spies Hecker

It seems like problems for the Japanese company Takata have suddenly increased with more than 17 charges being led from the Competition Commission for price fixing and collusive tendering in market division charges. Takata have declared bankruptcy internationally after their airbag proved to be a health hazard when vehicle accidents occurred.

Now the local arm of the company is set for prosecution on four charges that involve collusion tenders delivered to BMW, Toyota and VW between 2006 and 2011 in the supply of various automotive components that include airbags, seat belts and steering wheels. These charges are made from the March referral for price fixing and market division activities.The Commission is not seeking penalties against other global supply chain companies or their affiliates implicated with Takata that include AutoLiv Inc, AutoLiv SA, TRW Automotive Inc and TRV Occupant Restraints South Africa.

AutoLiv globally are one of the largest makers of vehicle airbags and have already signed an agreement of settlement with the commission when they offered to pay a fine of R149 million for engaging in a number of prohibited anti-competitive practices in tenders with VW and BMW for the manufacture and supply of airbags, seat belts and steering wheels.

Competition Commission Tembinkosi said recently that the uncovering of these cartel operations on car parts supply affect a great many models that are popular and it’s effect would be to increase costs of the affected motor vehicles and conditions were imposed to ensure payment of any fines imposed on Takata by the tribunal.

Earlier this year the Competition Commission approved a merger in terms of which Jayson KSS Holdings No 2 and Jayson KSS Automotive Safety SA were to absorb the Takata company as they are currently undergoing bankruptcy proceedings in various jurisdictions after their parts were found to cause incidents of death and injury.