House Of Cards Begins To Fall As Price Fixing Scandal Forces Japanese To Rethink Keiretsu System

For Japanese auto parts suppliers, these are deeply disturbing times. A business culture that has long overlooked collusion is under attack.

Japan's Denso Corp., which supplies major automakers worldwide and is a member of the Toyota Group, and Yazaki Corp. last week joined Furukawa Electric Co. in pleading guilty in North America to bid-rigging.

All three suppliers will pay hefty fines. Seven Yazaki and Furukawa middle managers -- all Japanese nationals -- face up to two years' jail time in the United States.