On September 26, 2013 (U.S. Eastern Standard Time), JTEKT CORPORATION (JTEKT) entered into a plea agreement with the U.S. Department of Justice (DOJ), agreeing to pay a fine of $103.27 million (approximately 10.3 billion yen) based on charges that it violated the sections of the U.S. Antitrust law in connection with sales of certain automotive products.
JTEKT has fully cooperated with the DOJ throughout its investigation. Upon overall consideration of applicable laws, relevant facts and other factors, JTEKT has decided to conclude a plea agreement under the terms set forth above. JTEKT will continue to cooperate with the DOJ in its investigation as provided in the plea agreement. This matter originally arose from internal investigations conducted by JTEKT in connection with an on-site inspection by the Japan Fair Trade Commission in July 2011. JTEKT sincerely regrets the concern this matter has generated.
Since the Japan Fair Trade Commission’s inspection in July 2011, JTEKT has taken appropriate measures to prevent recurrence of any similar matters and has reinforced its compliance efforts. JTEKT remains committed to ensure compliance with all applicable laws
and regulations globally. As JTEKT takes this matter with utmost seriousness, JTEKT is committed to making further efforts to ensure compliance and enhance the effective implementation of its global antitrust compliance program.
The fine payment will be recorded as an extraordinary loss in the second quarter of the fiscal year ending March 2014. JTEKT is currently analysing the impact of the fine on the Company’s financial forecast for the fiscal year ending March 2014 and will make a public disclosure as soon as the data is prepared.
