XIAM007 - Making Unique Observations in a Very Cluttered World: 02/24/10

Wednesday, 24 February 2010

Government Motors / FBI Raids the offices of three Michigan auto suppliers who do work for Toyota -

Reading - Government Motors / FBI Raids the offices of three Michigan auto suppliers who do work for Toyota -

The FBI is confirming raids at the offices of three Michigan auto suppliers who do work for Toyota.

Search warrants were served Tuesday evening at Yazaki North America, DENSO International and Tokai Rika. Yazaki sells electronic components and DENSO makes accelerator pedals.

Law enforcement sources say the raids are part of an ongoing anti-trust investigation of the companies. They say this is not a criminal investigation and not related to the current acceleration problems. Department of Justice spokesperson Gina Talamona said "The Antitrust Division is investigating the possibility of anti-competitive cartel conduct of automotive electronic components suppliers. We are coordinating with the European Commission and other foreign competition authorities."

DENSO has released the following statement:

"DENSO International America, Inc. (DIAM), U.S. subsidiary of DENSO Corporation, was inspected on February 23, 2010 by the U.S. Federal Bureau of Investigation and the U.S. Department of Justice in regard to U.S. antitrust laws. DIAM is cooperating with this investigation."

Yazaki also issued a statement:

Federal authorities issued search warrants to Yazaki Corp., including Yazaki North America, on February 23. As part of the investigation, government officials visited Yazaki North America’s Canton, Michigan headquarters and Lexington, KY and Columbus, OH facilities.

Yazaki is fully cooperating with authorities. At this point, we are not in a position to disclose any additional information as we have not been informed of the details of the investigation.

Yazaki is committed to servicing their customers and this investigation will not impact the level of service that we continue to supply to our customers.

GM to End Hummer - after its bid to sell the brand to a Chinese company collapsed -

Reading - GM to End Hummer - after its bid to sell the brand to a Chinese company collapsed -

General Motors said Wednesday it will shut down Hummer after its bid to sell the brand to a Chinese company collapsed.

Heavy equipment maker Sichuan Tengzhong Heavy Industrial Machines pulled out of the deal for Hummer, known for its hulking, military-like SUVs, because it was unable to get clearance from Chinese regulators within the proposed deal timeframe, the manufacturer said in a separate statement.

GM said it will continue to honor existing Hummer warranties.

"We are disappointed that the deal with Tengzhong could not be completed," said John Smith, GM vice president of corporate planning and alliances. "GM will now work closely with Hummer employees, dealers and suppliers to wind down the business in an orderly and responsible manner."

GM has been trying to sell the loss-making brand for the last year and found a suitor in Tengzhong, but resistance from Chinese regulators created difficulties from the start. As recently as Tuesday private investors were trying to set up an offshore entity in a last-minute effort to complete the acquisition head of a Feb. 28 deadline.

Hummer is the second brand after Saturn that GM has failed to sell aspart of its restructuring. GM sold Swedish brand Saab to Dutch carmaker Spyker Cars NV earlier this year. Pontiac is being discontinued.

GM is focusing its efforts on its four remaining brands: Chevrolet, GMC, Cadillac and Buick.