The Auto Parts Price-Fixing Scandal: How Wiper Manufacturers Defrauded 25 Million Car Buyers

For more than a decade, executives from the world's largest automotive parts suppliers met in secret to rig bids and fix prices. They used code names, destroyed documents, and agreed in advance which company would "win" contracts to supply wiper systems, starter motors, and other components to Toyota, Honda, Chrysler, Subaru, and other automakers.

The cost of this conspiracy was passed directly to consumers. Every car buyer who purchased a vehicle equipped with these parts paid an artificially inflated price—an invisible tax collected by a cartel.

In 2013, the U.S. Department of Justice, working with the FBI and international regulators, cracked the case. What followed became the largest antitrust investigation in DOJ history, resulting in criminal fines exceeding $2.9 billion across all auto parts categories, prison sentences for dozens of executives, and civil settlements for defrauded consumers.

This article is part of our Comprehensive Wiper Blade Series, examining wiper materials, history, industry practices, and buying advice.

The Conspiracy: How It Worked

The Players

The wiper system conspiracy involved major Japanese and German suppliers including Mitsuba Corporation, Denso Corporation, Bosch, and Valeo. These companies collectively controlled a dominant share of the global market for windshield wiper systems, motors, and related components.

The Mechanism

When automakers like Toyota or Honda solicited bids for wiper system contracts, the suppliers were supposed to compete independently. Instead, executives met secretly—in parks, coffee shops, and hotel rooms—to coordinate their bids.

The cartel agreed in advance which company would submit the lowest bid and "win" each contract. The other conspirators would submit intentionally higher bids to create the illusion of competition. This practice, known as "bid rigging," ensured that prices remained artificially high while each cartel member maintained their market share.

Covering Their Tracks

The conspirators were sophisticated in concealing their activities. They used code names to refer to companies and products. They avoided putting agreements in writing. When documents were created, they were systematically destroyed. Meetings were held in locations unlikely to be observed by colleagues or competitors outside the cartel.

The Investigation

The DOJ Antitrust Division, working with the FBI and regulators in Japan, the European Union, and other jurisdictions, began unraveling the conspiracy around 2011. The investigation expanded rapidly as cooperating witnesses provided evidence against their co-conspirators.

By 2013, the investigation had grown to encompass dozens of auto parts categories beyond wiper systems—including wire harnesses, instrument panel clusters, fuel senders, and electronic control units. More than 30 companies and 50 individual executives would eventually plead guilty.

The Wiper System Penalties

Mitsuba Corporation: $135 Million

Mitsuba Corporation, a major Japanese supplier, pleaded guilty to price fixing on windshield wiper systems, starter motors, and power window motors. The company agreed to pay a criminal fine of $135 million—one of the largest penalties in the entire auto parts investigation.

The conspiracy affected parts installed in vehicles manufactured by Honda, Nissan, Toyota, and other automakers sold in the United States and elsewhere.

Denso Corporation: $78 Million

Denso Corporation, one of the world's largest automotive suppliers, pleaded guilty to conspiracy to fix prices on various components including wiper systems and electronic control units. Denso agreed to pay $78 million in criminal fines.

Executive Prison Sentences

The DOJ did not limit prosecution to corporate entities. Individual executives faced criminal charges, and several received prison sentences.

Kazuaki Fujitani, an executive at Denso Corporation, was sentenced to one year and one day in federal prison after pleading guilty to obstruction of justice related to the investigation. Fujitani had attempted to destroy evidence and mislead investigators.

Multiple other executives across the broader auto parts investigation received prison terms ranging from one to two years. The willingness to imprison foreign executives sent a clear message about DOJ's commitment to enforcement.

The Civil Class Action

Following the criminal prosecutions, consumers and businesses that purchased vehicles containing price-fixed parts filed civil class action lawsuits seeking compensation for the overcharges.

Windshield Wiper Systems Settlement: $6.2 Million

The class action specifically targeting windshield wiper system manufacturers resulted in a settlement fund of $6.2 million for direct purchasers who bought wiper systems between 2000 and 2012.

Direct purchasers included automakers themselves, fleet operators, and large-scale parts distributors—not individual consumers who bought replacement wiper blades at retail. However, the broader settlements in the consolidated auto parts litigation provided mechanisms for end consumers to file claims.

Total Auto Parts Settlements: Over $1 Billion

Across all product categories in the consolidated auto parts antitrust litigation, civil settlements exceeded $1 billion. Consumers who purchased or leased new vehicles during the conspiracy period were eligible to file claims.

The Scale of the Fraud

The auto parts price-fixing conspiracy affected an estimated $5 billion in parts installed in more than 25 million vehicles sold in the United States. Every consumer who purchased one of these vehicles unknowingly paid an inflated price.

The overcharges were not dramatic on any single component—perhaps $5-20 per wiper system—but multiplied across millions of vehicles and dozens of part categories, the total extraction from consumers reached into the billions.

Automakers were also victims. Toyota, Honda, Chrysler, and others believed they were receiving competitive bids when in fact they were being defrauded. Some automakers joined the civil litigation as plaintiffs.

Why It Matters for Consumers

The wiper price-fixing scandal reveals an uncomfortable truth about automotive supply chains: consumers have almost no visibility into how component prices are set. When you buy a car, you cannot evaluate whether the wiper system, the starter motor, or the electronic control unit was fairly priced.

The conspiracy persisted for more than a decade because the overcharges were invisible. Unlike gasoline prices, which consumers monitor closely, auto parts costs are buried in the sticker price of a new vehicle. The cartel exploited this opacity.

The DOJ investigation and subsequent prosecutions represented the largest antitrust enforcement action in the automotive industry. The message was clear: price-fixing conspiracies will be detected, prosecuted, and punished with substantial fines and prison sentences.

The Companies Today

Mitsuba, Denso, and the other companies that pleaded guilty remain major players in the automotive supply industry. They continue to supply wiper systems and other components to automakers worldwide.

As conditions of their plea agreements, these companies implemented enhanced compliance programs designed to prevent future antitrust violations. The DOJ required ongoing monitoring and reporting to ensure competitive behavior.

Whether these reforms have fundamentally changed corporate culture in the industry remains an open question. The auto parts sector has consolidated further since the scandal, with fewer independent suppliers and more concentrated market power.

Key Takeaways

The auto parts price-fixing scandal was real and massive. Major suppliers including Mitsuba ($135 million fine) and Denso ($78 million fine) pleaded guilty to criminal conspiracy.

Executives went to prison. This was not merely a corporate fine paid from shareholder funds—individual decision-makers faced personal criminal consequences.

Consumers were defrauded. An estimated 25 million vehicles contained price-fixed parts, and every buyer paid an invisible markup.

The conspiracy lasted over a decade. From 2000 to 2012, the cartel operated without detection, demonstrating how difficult it is to identify price-fixing in opaque supply chains.

When you consider the price of a wiper blade or any other auto part, remember: the market is not always as competitive as it appears.

Related Wiper Guides

For guidance on choosing wiper blades based on material science, see our Silicone vs Rubber Wiper Blades Guide.

For practical buying advice, see our Complete Wiper Blade Buying Guide.

For wiper invention history, see The Robert Kearns Patent War.

For autonomous vehicle visibility challenges, see Tesla's Vision-Only Wiper Crisis.

To understand OEM vs aftermarket windshield considerations, read our OEM vs Aftermarket Windshields Analysis.