Goodyear Face Price Rigging Commission
In what is proving to be a bad year for Goodyear Tire and Rubber Co., the company has announced that it is one of several tyre producers that are under investigation from Japan’s Fair Trade Commission for alleged price rigging.
The investigation will focus on the company’s Goodyear Wingfoot KK unit, alleging that it was involved in unfair business practice when it acted as a supplier to Japan’s National Defence Agency.
Japanese media sources are reporting that about a dozen offices were searched including those of some high profile companies. Japan’s NHK television reported that Bridgestone Corp., Yokohama Rubber Co., Toyo Tire & Rubber Co. were among those questioned by officials on suspicion that they rigged bids for contracts to supply tyres to the country’s military.
The news comes the day after Goodyear’s first quarter results showed net losses of $77 million, a 61 per cent improvement on 2003.