21 December 2013


The world's largest bearing manufacturers SKF & SCHAEFFLER who control over 50% of global production stated Friday 20 Dec. would take $1 BILLION charge for expected antitrust fine. This combined penalty is the largest ever imposed against the bearing industry; payment due to EU Commissioners in 2014
For associated news comments and amounts view:

Schaeffler states: "Since late 2011, the European Commission has been investigating possible violations of antitrust law by Schaeffler Group and certain other bearing manufacturers. The investigation concerns alleged contacts among competitors concerning the sale of bearings for automotive applications in Europe. Schaeffler is cooperating fully with the relevant authorities in this investigation and in addition is conducting its own investigation. The company anticipates that a decision will be taken by the European Commission in 2014 and that a fine will be imposed. Based on Schaeffler's best estimates the company has decided to take a provision of around €380 million in the fourth quarter of 2013"

Similar comments by SKF states also: "I deeply regret that this has happened. Even if we believe it has not caused any damage to our business partners, this should not have happened and is not at all in line with the values we have in SKF. We have a clear code of conduct and a well-established compliance program, which we operate throughout the Group, but it did not prevent this from happening. We have since taken further steps to intensify training and knowledge on this throughout the Group" says Tom Johnstone, President and CEO. "We have previously advised that the likely fine will materially affect our result and cash flow and have taken our best estimate of a possible fine into the result."

SKF said recently acquired Kaydon would make an operating loss of 150 million crowns in the fourth quarter and that the group would take additional one-time costs of 100 million crowns in the three months

Since 2006, SKF Schaeffler & the Bearing Industry had been advised many times by professional institutions, documented and published that company owned & operated Codes of Conduct and Compliance programs will be contaminated: Japanese Bearings is further proof. However contrary to Tom Johnstone, the public got bearing corruption from the highest level and a Cartel so-called + unregistered 'World Bearing Association' to combat against BEARINGCODE who was always considered a threat to this monopoly.

What comes from this EU penalty is unknown, but industry leadership must come from SKF & SCHAEFFLER especially when the US DOJ Washington finalizes its verdict sometime 2014 that as a minimum, will escalate this serious situation

News from Russia/CIS Countries in response to SKF SCHAEFFLER & JAPANESE

View in Russian (without translation)
-industry news Mirovye proizvoditeli podshipnikov pod udarami iskov i antimonopolnyh del

Global manufacturers of bearings under the blows of lawsuits and antitrust cases: 22 December 2013

The economic crisis of 2008-2010 Cover with peace and led to stagnation due to difficulties with financing again forced consumers to ponder the question : " Why do we pay for branded products so expensive? Why should I give their blood or lending money for it? . " And when consumers are beginning to understand this , tearing marketing shell one after the other with these things sometimes ephemeral as a trademark , brand or reputation, exposing the economic core of showing that there is clearly not without its illegal machinations.
The world's largest bearing manufacturers receive blows in different countries for antitrust violations

The first call is not quite correct about the price of the bearings on the world market, especially in regions with stagnant economies , came in 2011 from Japan. Then the local antitrust authority announced the presence of his four charges grounds largest manufacturers of bearings NTN, NSK, NACHI and JTEKT, occupying the Japanese market and the world's dominant position , price fixing and cartels . Then, like a snowball in the world bearing manufacturers , and that NTN, NSK, NACHI, JTEKT, SKF and SCHAEFFLER, rained blows : check Antimonopoly Commission , fines from the Fair Trade Commission of Japan , lawsuits from consumers in the U.S. antitrust investigation Canada, Australia and Singapore , confirmed uncleanliness bearing transnational companies.

This week, in these cases , there were two notable events :

- The European Commission nevertheless impose a fine equivalent to $ 1 billion for the company SKF ( Sweden) and SCHAEFFLER ( Germany);

- Competition Commission of Singapore announced the detection of violations of law in the branches JTEKT, NSK, NTN and NACHI-FUJIKOSHI.

December 20 on the official websites and SKF SCHAEFFLER, control according to various estimates up to 50 % of the world bearing market appeared press releases stating the expected fines from the European Commission for the international violation of free competition in the market of automobile bearings. SKF announces payments in the amount of $ 455 million, and SCHAEFFLER - about $ 519 million Given that both firms are now in a pretty serious debt dynamics and their profit from sales is directed to the negative side , the impact in Europe can be extremely sensitive. Besides investigating leads and U.S. Department of Justice , which , based on the data of European colleagues , too, can make a serious and conspicuous budget fine companies that appear to spur additional lawsuits already shaft from consumers with compensation requirements.

The second event was less familiar, but the same " opera" , but it applies only to Japanese manufacturers , branches are located in the city-state of Singapore . Competition Authority under the Ministry of Trade and Industry of Singapore , also known as the Competition Commission of Singapore, December 16 announced the official report about violation of section 34 of the Competition Act four Japanese bearing manufacturers.

Affiliates and parent companies JTEKT Corporation, NSK Ltd, NTN Corporation, Nachi-Fujikoshi, according to agencies involved in anti-competitive agreements and illegal exchange of information regarding the prices of ball and roller bearings . Employees of companies met regularly both in Singapore and in Japan, shared information , discussed and agreed prices for bearings for customers in Singapore , thereby illegally maintained market share, protect their profits and sales. Based on this , Competition Commission of Singapore has issued a written notice to interested parties of the facts and asked to bring their arguments , as well as any other information before the decision will be made about whether there has been a violation of law.

In connection with all this , of course, a question arises : " How to compensate their multimillion losses these companies ? Not due to any such passive regions in legal terms as a Russian ? " . It is possible . This has already been confirmed to us indirectly asked not to be named employee of one of the bearing manufacturers substituted by a cartel abroad: " From January next year, the price of car production in Russia will grow differentiated , but we will do our best to supply the product range was optimal for the client . " That is, if a January 2014 automobile bearings produced under trademarks owned companies NTN, NSK, NACHI, JTEKT, SKF and SCHAEFFLER, Russia is poised to significantly in price , you can already speak clearly about how all of these same firms will cover their fines in other countries - due to the Russian consumer.

NB: This is GOOGLE translation from RUSSIAN to ENGLISH

18 December 2013

Singapore Cartel Charges Japanese Bearings JTEKT NSK NTN NACHI

In yet another Bearing corruption scandal, Singapore has found major Japanese Bearing Manufacturers infringed with unlawful exchange Cartel activity effecting many Countries in the ASIAN Region and the possibility of another Class Action by multi-Nationals who innocently purchased these brands

Singapore Proposed Infringement Against Japanese Ball and Roller Bearings Manufacturers
(Click here for the PDF)

  1. The Competition Commission of Singapore (CCS) has issued a Proposed Infringement Decision (PID) against four Japanese bearings manufacturers and their Singapore subsidiaries ("Parties"). The companies were found to have infringed section 34 of the Competition Act (Cap.50B) (the "Act") by engaging in anti-competitive agreements and unlawful exchange of information in respect of the price of ball and roller bearings sold to customers in Singapore. Ball and roller bearings are machine components that separate moving parts and take up loads. Both parent and subsidiary company were found to be jointly and severally liable for the infringement.
  2. CCS commenced its investigations into the Parties after receiving an application for immunity under CCS's leniency programme from one of the companies involved in the cartel. CCS's investigation revealed that the Parties were competitors and met regularly at meetings both in Japan and Singapore where they exchanged information; discussed and agreed on sales prices for ball bearings sold to their respective customers in Singapore, so as to maintain each participant's market share and protect their profits and sales.
  3. The PID is a written notice setting out the facts on which CCS makes it assessment and its reasons for arriving at the proposed decision. It is issued to give the parties concerned, an opportunity to submit their arguments to CCS, and provide any other information for consideration, before CCS finalises its decision on whether there has been an infringement.
  4. In this regard, all the Parties have six weeks from the receipt of the PID to make their representations. Please refer to the attached Appendix for the list of Parties involved.

List of Parties Involved:

  1. JTEKT Corporation and its Singapore subsidiary, Koyo Singapore Bearing (Pte) Ltd
  2. NSK Ltd. and its Singapore subsidiary, NSK Singapore (Pte.) Ltd.
  3. NTN Corporation and its Singapore subsidiary, NTN Bearing-Singapore (Pte) Ltd
  4. Nachi-Fujikoshi Corp and its Singapore subsidiary, Nachi Singapore Private Limited.


For media clarification, please contact
Ms. Grace Suen
Assistant Director
Strategic Planning Division
Competition Commission of Singapore
Email: grace_suen@ccs.gov.sg
DID: 6325 8216/ 9835 8601

The 31st General Meeting(May 2010)The 30th Deliberating Council
Meeting (November 2009)
14 December 2013

NSK Bearings in More Legal Action Filed 13 Dec 2013

New criminal proceedings against Japan's NSK Bearing Group were filed 13 December 2013 in the Australian Federal Court for alleged Price Fixing Cartel and Corrupt activity; bringing the number of legal cases against the NSK Bearing Group to an unprecedented 7 worldwide with many global investigations continuing

The Australian Competition and Consumer Commission (ACCC) has issued writs against NSK and seeks Court Orders for pecuniary penalties, injunctions, and a compliance program. Similar legal proceedings are on notice with other Japanese Corporations for colluding & obstruction associated to NSK Corporation

view: http://www.abc.net.au/news/2013-12-13/accc-takes-action-over-alleged-car-parts-cartel/5156280

view: http://www.accc.gov.au/media-release/accc-takes-action-against-nsk-for-alleged-cartel-conduct

The case was brought following broader co-operation between competition agencies in the United States, Europe and Canada. These legal proceedings are serious especially during the downturn and mass redundancies suffered in the Auto Industry & related component parts

A directions hearing for NSK Bearing Group has been set down for 5 February 2014 at 9.30 am before Justice Edmonds in the Federal Court, Sydney Australia

'Public & Union' legal Class Actions appear stronger than ever particularly when General Motors & Ford are closing down in Australia & elsewhere, with corporations eg NSK Bearing Group seen as taking full and unethical advantage

3 December 2013

Justice Departments Crackdown on SKF Fake Reviews

DOJ Commissioners have launched a global crackdown on Fake Claims considered "misleading or deceptive conduct" including false reviews to gain an unfair advantage or damage their rivals. Penalties for this type of corruption carry a conviction and fines to $1.1million.

Consumer agencies will conduct investigations against the SKF Group for alleged breaches including advertising and misleading or deceptive conduct. A Judicial inquiry has been requested against SKF for a fake and misleading Criminal Court proceedings involving statements of 12 months imprisonment http://www.skf.com/group/news-and-media/news-search/2013-02-04-swedish-court-rules-for-criminal-conviction.html

The EU police involvement into an allegation by SKF Group for Fake claims of Counterfeit bearings http://www.skf.com/skf/news/html/popup.jsp?lang=en&contentId=872305

The French Court of Justice involvement into SKF and Distributor for Fake claims of Counterfeit bearings http://www.brammer.co.uk/news/beware-the-threat-of-counterfeit-bearings-499-1.htm

USA Bearing Class Action filed below for additional evidence to their claim by Law firms associated to this litigation

  /(SPS_Spindle)_212-cv-13142.pdf      World Bearing Association/SKF/USA Class Action - Michigan District Court - Jury Trial 2014

Commission Details: http://www.accc.gov.au/media-release/accc-releases-guidance-about-online-product-reviews

The ACCC has warned that it is monitoring the internet for fake reviews, and could fine offending companies up to $1.1 million for bad behaviour. According to the regulator, fake online reviews could be considered "misleading or deceptive conduct", breaching Australia's Competition and Consumer Act. ACCC Deputy Chair Dr Michael Schaper said businesses were relying increasingly on online reviews, with a recent survey finding that almost three-quarters of social media users (74%) read online reviews before making a purchase. "Fake online reviews mislead consumers and hurt Australian businesses," he said. "Businesses that pay for or post fake reviews can gain an unfair advantage or damage their rivals." Here's what the ACCC considers unacceptable:

  • Reviews that are presented as impartial, but written by the reviewed business, a competitor, someone who was paid to write the review and has no used the product, or someone who has used the product but has been incentivised to write a good review;
  • Businesses and review platforms that selectively remove or edit reviews, particularly negative reviews;
  • Encouraging family and friends to write reviews about the business without disclosing their personal connections with the business in the review;
  • Soliciting others to write reviews about a business or a competitor if they have not experienced the good or service; and
  • Writing reviews that do not reflect a genuinely held opinion.

There's more in the ACCC's online review guidelines

The Australian Competition and Consumer Commission is addressing misleading conduct related to fake online reviews, by releasing best practice guidance about online product reviews for businesses and review platforms.
"Online reviews are an increasingly popular resource for consumers purchasing goods or services. Many businesses rely on these reviews to promote their businesses, however, some unscrupulous businesses are taking advantage of consumer trust in online reviews," ACCC Deputy Chair Dr Michael Schaper said.
Online reviews help consumers make informed decisions based on a range of third party consumer opinions. More consumers are relying on these reviews and a recent Sensis Social Media Report 2013 suggests that 74% of social media users read online reviews before making a purchase.
The publication, Online reviews: a guide for business and review platforms follows extensive consultation with a wide range of consumer and industry representatives.
"Australian consumers have more choice than ever before. However, with more options available, it is important that there is accurate and reliable information available to help consumers choose," Dr Schaper said.
The ACCC is concerned that there is an increase in paid for and fake reviews. Many consumers believe that reviews on various review platforms are the genuine experience or views of other consumers.
"Fake online reviews mislead consumers and hurt Australian businesses. Businesses that pay for or post fake reviews can gain an unfair advantage or damage their rivals," Dr Schaper said.
The guidelines set out three core principles of conduct for businesses to abide by:

  • be transparent about commercial relationships,
  • don't post or publish misleading reviews, and
  • remember that omitting negative reviews can be as misleading as posting fake reviews.

Penalties of up to $1.1 million are available to the Courts for misleading or deceptive conduct which breaches the Competition and Consumer Act 2010 (the Act). The ACCC has previously taken enforcement action against businesses in relation to misleading reviews and testimonials and will continue to monitor the online reviews sector for contraventions of the Act.
The guidelines are intended to provide practical suggestions to platforms and reviewed businesses to help them reduce the risk of misleading consumers. "Fake online reviews are in breach of the Australian Consumer Law and businesses are advised not to write or commission reviews about their own business or a competitor's business which are misleading," Dr Schaper said.
As well as fake reviews, the ACCC is concerned about two other categories of misleading behaviour connected with online reviews. These are:

  • the manipulation of review results by review platforms as part of a commercial relationship between the platform and the reviewed business; and
  • businesses artificially inflating their review results by offering consumers generous incentives in exchange for reviews of their products or services

2 December 2013

Bearing Innovation Competes Against Penalties

Bearing innovation and education have taken a backward step against fines and penalties incurred from global illegal Corporate activity. And while bearing manufacturers are hit with these massive amounts by the Justice system, the Bearingcode is caught up with reports, notifying and investigating all facets of Court procedures. Possibly becoming plain yawn to publish as to readers, sad but inevitable with bearing corporate funds drained away from innovation programs; yet some would blame Bearingcode for harsh criticism of bearing Executives regrettably in not taking responsibilities for their own actions

Our real objective for a bearing Future is education with independent innovation. These programs essentially modelled from CALCE USA utilizes University facilities with Corporate alignment particularly in certain regions of ASIA and SOUTH AMERICA. CALCE initially invented for Electronics, has now advanced to other industries eg. bearings, with wide departmental support & recognition from most institutions.

Obviously first funding is corporate with advantages to global naming, higher education & advertising rights

Bearingcode site commands a global Industry audience, remaining strictly independent with funding from the Australian government who is non-aligned and without any obligation. Our communication on innovation and education with individual, corporate or institutional groups all welcomed

25 November 2013

Bearingcode's Development For Industry Groups

Bearingcode and member affiliates CALCE www.calce.umd.edu SAE www.sae.org NASA www.techbriefs.com/ SMTA www.smta.org/ have agreed to cooperate together with intelligence sharing for Counterfeit detection. This arrangement will provide significant advantages to the Bearing Industry offering continued Counterfeit education either jointly or separately which can be utilized for Technical, Marketing and Patent purposes to every Continent

One main objective to this agreement is the ease of Law enforcement without the need in changing legislation. Bearingcode's marking requirement to Product & Packaging consisting of Part Number, Brand, Country of Origin was widely accepted because any IP variation is a legal violation and needs no further proof to obtain conviction. 'Name and Shame' is still recommended with any corporate crime

As a further deterrence, a requirement for Executives re-election to their Board is now considered vital especially when Convictions registered against any Corporation and IP Patents. Stock Markets should have the power to call for fresh Executive Board elections after every Legal Conviction, meaning all existing members retire to face re-election by shareholders. Corporate settlements are exempted which maybe fortunate to JPMorgan Chase (JPM) agreed to pay $13 billion to bring an end to a series of lawsuits and Johnson & Johnson (JNJ) payout at least $2.5 billion

The SAE ( http://www.sae.org/events/cpastx/organizers.htm ) will conduct its final 2013 Counterfeit Parts Avoidance Symposium on December 10, 2013 Irving, Texas, USA - Doubletree DFW Airport North Overview

Professor Diganta Das
'CALCE' at University of Maryland

Will represent both Electronics and Bearings for this Conference

Dr. Diganta Das is a member of the research staff at the Center for Advanced Life Cycle Engineering. His expertise is in reliability, environmental and operational ratings of electronic parts, uprating, electronic part reprocessing, counterfeit electronics, technology trends in the electronic parts and parts selection and management methodologies. He performs benchmarking processes and organizations of electronics companies for parts selection and management and reliability practices. He received his Ph.D. in Mechanical Engineering from University of Maryland, College Park and his Bachelor's from Indian Institute of Technology in Manufacturing Science and Engineering. He is a SIX SIGMA BLACK BELT and member of IEEE, IMAPS & SMTA.

13 November 2013

US Department of Homeland Security Counterfeit Symposium

We invite delegates from the Bearing Industry to this important meeting on Counterfeit products Register today with CALCE SMTA, further information can be obtained via Bearingcode info@bearingcode.com

Join the US Department of Homeland Security at the SMTA Counterfeit Symposium
November 19-21, 2013

San Diego, CA | Town & Country Resort

The department of Homeland Security, and its division of Immigration and Customs Enforcement are responsible, along with other investigative and enforcement agencies, for protecting the country, its citizens and also its industry from problems caused by violations of intellectual property laws and other regulations on trade.

We are very happy to have two presentations from the ICE-DHS in our event. The ICE personnel will also be present at the exhibitor halls to meet with the participants and answer their questions

Tuesday, November 19, 8:40 AM

"How the Department of Homeland Security Defends Our Country Against Counterfeited Goods"

Hector Perea, Immigration and Customs Enforcement (ICE)

Wednesday, November 20, 8:15 AM

"Review of US Export Control Laws"

Joshua Bass, Immigration and Customs Enforcement (ICE)

*Both speakers and other DHS personnel will be present at their booth if you wish to discuss their presentation*

Other participants in the program include the University of Maryland, ECIA (Electronic Components Industry Association), The Boeing Company, IDEA (Independent Distributors of Electronics Association), Creative Electron, Integra Technology and many more ... The full program is at: http://www.calce.umd.edu/whats_new/2013/SCEP2013Nov.html

Sign up by clicking here
or by calling 952.920.7682.

Joel Eaton

Event Assistant

Surface Mount Technology Association


9 November 2013

Seminar Prospect to Legally Change Bearing Business

The November 22nd 2013 Seminar main objective is to address future penalties & possible convictions from another wave of criminal and civil legal cases expected soon against our Bearing Industry.

Its widely accepted that taking responsible education & remorseful action before legal proceedings, will result in reduction of penalties. Recent USA Auto Industry convictions with combine fines of $170 million to KOYO + NSK and Japan's JFTC penalties of a further $150 million approx is overwhelming, but demonstrates the degree of corruption by bearing manufacturers. The denial of this existence and not taking appropriate action, is inviting the most stringent penalties by Courts and to innocent shareholders who trusted their bearing Executives

Six bearing manufacturers, two distributors and "WBA" are already under Government investigations in USA EU SINGAPORE with various Class Actions already filed in USA sofar. JAPAN CANADA AUSTRALIA have handed down bearing convictions but with the likelyhood of further legal proceedings

We can report that SKF Industries has shown leadership by expressing interest in this seminar, while other manufacturers appearing to 'fence-sit' & many bearing distributors requesting further information. If your corporation intends to attend this vital seminar, then you must notify Ian McPherson ian@bearingcode.com or phone +61 419568453 by Thursday November 14th 2013 latest, kindly note its NOT possible to attend after this date due to security and logistic arrangements

3 November 2013

Bearing Seminar Important Time Frame

Our Thai Seminar November 22-24, 2013 is not a forum for Corporate Retribution or Witch-Hunt.
The date is the only available time frame before the New Year, the next best is March 2014 and as important bearing industry matters stated in our last news item, they should not be delayed a further 4 months. Your understanding is sought

The objective is to publicly substantiate to the Legal Profession, Institutions, Industry + Media that the Bearing Industry is determined to eradicate corporate crime by initiating mechanisms for future well being

All bearing businesses and other industry representatives are welcomed with delegates from above groups invited, interactive discussion encouraged

Time permitted, the other topics will include: *Governance *BearingCode *Statistics *New Education *Civil Action Deterrence *Associations *Reputation & Redress *Accreditations *Counterfeit *Significance of CALCE SAE NASA *General Sessions + Learning from the Past

All seminar details: Ian McPherson, President ian@bearingcode.com or phone +61 419568543

Images for chanthaburi
Chanthaburi is a province of Thailand. It is located in the east of Thailand, at the border to Battambang and Pailin of Cambodia and the shore to the Gulf of Thailand

University: Rambhaibarni Rajabhat University



29 October 2013

Legal Seminar for Bearing Industry Corporate Governance

The Bearingcode wishes to announce the first Bearing Industry Corporate Governance seminar to be held in Thailand, with kind permission from the Faculty of Law at Rambhai Barni Rajabhat University (RBRU) Chantaburi http://www.rbru.ac.th/rb_eng/ - Representatives from PWC www.pwc.com and 'Calce' University of Maryland USA http://www.calce.umd.edu/ are invited

The meeting is scheduled for November 22 - 24, 2013 specifically designed for the Bearing Industry, Auto Components and associated Manufacturers recently effected by global legal decisions. The Seminar will be conducted by Ian McPherson

Bearingcode has arranged accommodation in Thailand and can assist with any travel arrangements within the Asian basin area. Those needing connections eg. from Europe and USA should arrange with their local agent or via internet

Seminar 3 day cost not including accommodation: US$900

We kindly seek your early attention to register, a detailed program will be sent to you upon final acceptances email: ian@bearingcode.com   phone +61 419568453

24 October 2013

Bearing Class Actions, Forensic & Settlement Requirements

Forensic evidence will be subpoenaed as a legal requirement for the 13 Class Actions filed in the USA Michigan District Court against the 6 major Bearing Manufacturers. The vast majority of Class Actions achieve settlement, saving enormous costs in proceeding to Trial. A true & classic example from http://en.wikipedia.org/wiki/A_Civil_Action made to movie 'The Class Action'

However with Class Actions as distinct from criminal, sensitive Bearing evidence will not be disclosed although the World Bearing Association (WBA) will attract significant legal problems if executives minutes are not recorded and evidence of alleged corrupt behavior is widespread

The Bearingcode has reported on alleged bearing corruption and conspiracies although a sequence now seems to have emerged.

Maybe Schaeffler Group's owner Maria Schaeffler new future direction without Juergen M. Geissinger has more relevance, maybe NSK President Mr Norio Otsuka made unnecessary apologies without the knowledge of WBA agenda, and maybe the 6 major Bearing Corporations trusted their WBA executives with decisions made behind closed doors designed for their personal advantage ? These allegations require long overdue forensic examination

Has anybody requested copies of WBA minutes of meetings, are their any minutes detailing procedures and why was this Association not legally registered, afterall WBA meetings accommodation and travel expenses were funded by corporate shareholders and bound by the Corporation Act.

This year, we don't have the same amount of WBA propaganda why ? The latest Price Fixing conviction by KOYO/JTEKT in Australia raises serious questions about WBA's involvement and why KOYO still associate itself with WBA

If the executives of WBA are subpoenaed, then Mr Geissinger and other past & current CEO/Presidents of bearing corporations will be required to account for their actions, roles and involvement not only for the Class Actions filed, but to their Corporate peers. Finally, whilst many countries do not have legal provisions for Class Actions, Australia has many.

22 October 2013

KOYO $2 Million Penalty for Bearing Cartel

In another million dollar penalty against Japan's Bearing Manufacturers for 2013, KOYO Australia showing little or no remorse to the Courts conviction, confirms the attitude of bearing Executives in Australia & Japan that appears continuous with total negligent throughout the Koyo/Jtekt Corporation. Unless Koyo commits to a Corporate Governance compliance program as recommend by the courts and ACCC, Koyo will be seen as reckless and open to further legal abuse


The Federal Court has made orders by consent against Koyo Australia Pty Ltd ordering it to pay penalties of $2 million following action by the Australian Competition and Consumer Commission.

The Court found that in 2008 and 2009, Koyo Australia made and gave effect to two separate cartel arrangements with two of its competitors to increase the price of ball and roller bearings to their aftermarket customers.

"Detecting, stopping and deterring domestic and international cartels is a priority for the ACCC," ACCC Chairman Rod Sims said. "Cartels not only cheat consumers and other businesses, they also restrict healthy economic growth. It is crucial for the proper functioning of business in Australia that the ACCC continues to tackle cartel conduct with the full force of the law."

In relation to the penalty amount, the Court said:

"The discount for Koyo's co-operation and Koyo's acknowledgement of liability should be meaningful so that it can be seen that, were it not for its admissions now and co-operation, the Court would impose a significantly increased penalty if liability was established following a contested trial."

The Court has also made orders restraining Koyo Australia from engaging in similar cartel conduct for a period of three years and requiring it to implement a competition and consumer law compliance training program.

Mr Sims said "If you know of, or are involved in a cartel, the best course of action would be to speak to the ACCC and cooperate fully".
Release number

20 October 2013

SKF Anti Trust 'Due Process' In Doubt

At the request from Media Groups, Banks, Fairfax & Royal Bank of Scotland we are repeating in full our news article 11 October 2013 "SKF Anti-Trust Approvals For Kaydon Under Scrutiny"

There has been unknown interference displaying this French link http://www.autoritedelaconcurrence.fr/user/standard.php?id_rub=128&id_article=177 therefore a complete display of SKF Anti Trust Conviction in France, not Germany is listed below

English version

Press releases

Press releases 2002

23rd September 2002 : Agreement on price in the sector of ball bearings: the Conseil de la concurrence sentenced the main manufacturers for a total amount of approximately 19 million euros

> Version Française
The Conseil de la Concurrence has sentenced the main manufacturers of ball bearings on the French market for having enforced a cartel agreement. The Conseil de la Concurrence pronounced, for this practice referred by the French Minister of Economy, penalties of 19 014 000 euro (decision of September 19, 2002).

Agreement on gross prices and on granted rates of rebate

The Conseil de la Concurrence established that in 1993 and 1997, the Swedish company SKF, the French company SNR, and the German companies FAG and INA had closed links and agreed both on the level of increases in gross prices and on the rates of price rebate applied to distributors. Besides, the Conseil de la Concurrence also raised that, in 1993, the Japanese companies, Koyo and NSK, had agreed, with some of the above companies, on the level of price increases to be applied to several industrial customers.

The Conseil de la Concurrence underlined that such exchanges of information on evolutions of gross prices and rates of rebate, before these are announced and become actual, can favour artificial price increases. Indeed, the concerned companies are urged to proceed to such increases all the more as they are sure that their competitors will also increase their prices at the same moment.

The instruction also showed that distributors could not benefit from the technical aid of manufacturers when they supplied customers situated outside the agreed zone. The Conseil de la Concurrence considered that such a practice could hinder competition among distributors and, also, consolidate price agreements between manufacturers.
Serious practices that justify substantial financial penalties

These behaviours constitute the most obvious violation of competition's law and are particularly reprehensible as far as:

  1. they were repeated and covered a number of years,
  2. they concern ball bearings, indispensable material to the functioning of any mechanical machine and used in numerous branches of the economic activity. They have been implemented by ball bearings companies, sales of which on the French market accounted for nearly ¾ from the total of sales in 1998,
  3. they resulted in an artificial increase in gross prices of the sector: the increase in gross prices, announced by the manufacturers participating in the agreement (that is 3 % by the end of 1993, 4.5 % in the middle of 1994, 4.5 % at the beginning of 1995 and 3.5 % at the beginning of 1998), led to an accumulated increase of 16.4 % over the whole period. Even if gross prices are traditionally the subject of important rebates, these agreements could have an effect on the practised net prices, especially since rebates made also the subject of agreement.


> See decision of the Paris Court of Appeal (13rd May 2003)
> See decision of the Paris Court of Appeal (17th June 2003)

© Autorité de la concurrence

11 October 2013

SKF Anti-Trust Approvals For Kaydon Under Scrutiny

SKF Industries recent statement 10 October 2013, quote :- "SKF receives anti-trust approvals in USA and Germany and waives CFIUS condition in acquisition of Kaydon Corporation" is considered deceptive and questionable.

1. The SKF anti trust conviction for Price Fixing is registered in the French Central Court by the French Minister of Economy; not Germany view http://www.autoritedelaconcurrence.fr/user/standard.php?id_rub=128&id_article=177
English version

Press releases

Press releases 2002

23rd September 2002 : Agreement on price in the sector of ball bearings: the Conseil de la concurrence sentenced the main manufacturers for a total amount of approximately 19 million euros

> Version Française

The Conseil de la Concurrence has sentenced the main manufacturers of ball bearings on the French market for having enforced a cartel agreement. The Conseil de la Concurrence pronounced, for this practice referred by the French Minister of Economy, penalties of 19 014 000 euro (decision of September 19, 2002).

Agreement on gross prices and on granted rates of rebate

The Conseil de la Concurrence established that in 1993 and 1997, the Swedish company SKF, the French company SNR, and the German companies FAG and INA had closed links and agreed both on the level of increases in gross prices and on the rates of price rebate applied to distributors. Besides, the Conseil de la Concurrence also raised that, in 1993, the Japanese companies, Koyo and NSK, had agreed, with some of the above companies, on the level of price increases to be applied to several industrial customers.

The Conseil de la Concurrence underlined that such exchanges of information on evolutions of gross prices and rates of rebate, before these are announced and become actual, can favour artificial price increases. Indeed, the concerned companies are urged to proceed to such increases all the more as they are sure that their competitors will also increase their prices at the same moment.

The instruction also showed that distributors could not benefit from the technical aid of manufacturers when they supplied customers situated outside the agreed zone. The Conseil de la Concurrence considered that such a practice could hinder competition among distributors and, also, consolidate price agreements between manufacturers.
Serious practices that justify substantial financial penalties

These behaviours constitute the most obvious violation of competition's law and are particularly reprehensible as far as:

  1. they were repeated and covered a number of years,
  2. they concern ball bearings, indispensable material to the functioning of any mechanical machine and used in numerous branches of the economic activity. They have been implemented by ball bearings companies, sales of which on the French market accounted for nearly ¾ from the total of sales in 1998,
  3. they resulted in an artificial increase in gross prices of the sector: the increase in gross prices, announced by the manufacturers participating in the agreement (that is 3 % by the end of 1993, 4.5 % in the middle of 1994, 4.5 % at the beginning of 1995 and 3.5 % at the beginning of 1998), led to an accumulated increase of 16.4 % over the whole period. Even if gross prices are traditionally the subject of important rebates, these agreements could have an effect on the practised net prices, especially since rebates made also the subject of agreement.


  • 7,900,000 euros to the company SKF-France
  • 32,000 euros to the company FAG France
  • 6,600,000 euros to the company SNR Roulements
  • 4,000,000 euros to the company INA Roulements
  • 162,000 euros to the company Koyo-France
  • 320,000 euros to the company NSK France (previously NSK-RHP France)

> Decision 02-D-57 of September 19, 2002, relative to practices in the sector of ball bearings and assimilated sectors
> See decision of the Paris Court of Appeal (13rd May 2003)
> See decision of the Paris Court of Appeal (17th June 2003)
© Autorité de la concurrence

2. The investigation by USA authorities into the Bearing Industry is ongoing, therefore Anti Trust corruption has not concluded. The Auto Industry investigation is concluded and issued penalties with convictions against bearing manufacturers. SKF was not included in this Auto Industry matter.

3. SKF to voluntarily waive CFIUS conditions for Kaydon acquisition does not exclude the CFIUS investigation view http://en.wikipedia.org/wiki/Committee_on_Foreign_Investment_in_the_United_States

The Kaydon Corporation shareholders are advised to carefully check all statements.

17 October 2013

Bearingcode Accepted to Global Organizations

NASA Tech Briefs has accepted Bearingcode as member of their distinguished group allowing vital news to enhance our accredited members with 400,000 engineers & managers who rely on NASA Tech Briefs and Motion Control for new products, applications and the latest breakthroughs in:-

* Actuators * Hydraulics * Power Transmissions * Brakes & Clutches * Motors * Pumps or Sensors
* Controllers * Motor Controls * Software * Encoders * Pneumatics * Test & Measurement

This information is now a permanent link to Bearingcodes home page http://www.techbriefs.com/

16 October 2013

Bearing Authenticity Marking Standard Government Agreement

SAE International with Government approval pending, has launched a new program on Counterfeit products that will impact the Bearing Industry future direction and may eliminate many bearing fakes of the past.

Why an authenticity marking standard is needed now    http://counterfeitparts.sae.org/

An industry/government agreement on an authenticity marking standard is the critical next step

ABSTRACT: Consensus has been elusive between industry and government on the new Rule enforcing anti-counterfeiting wording in National Defense Authorization Act for FY 2012, Section 818. An immediate practical step is needed to address what is threatening to become an impasse on the issue.

Adoption of an authenticity marking standard represents a specific way in which the industry can begin to comply with the new Rule. This need not be a definitive recipe, but can be delivered as guidance. Nor does this need to be holistic from the start; this is may begin as partial and practical, and will evolve and grow as the Federal and supplier working relationship against counterfeits grows.

Without losing the flexibility of the current Rule, and without trying to impose an unworkable single solution, the government can establish ways industry can move forward right away.

Janice Meraglia and Mitchell Miller, Applied DNA Sciences, Inc
SAE International http://www.sae.org/

15 October 2013

The 8th World Congress on Engineering Asset Management (2013)

The CALCE University of Maryland USA http://www.calce.umd.edu/ and the education arm of Bearingcode will attend this years WCEAM in Hong Kong with guest speaker Prof. Michael Pecht to present the 'Utility Management & Safety'

Prof. Pecht To Present at 8th World Congress on Engineering Asset Management

To learn more about this international event, click here.

Representaive of BEARINGCODE will be attending

October 31, 2013 through November 1, 2013
Hong Kong Convention and Exhibition Centre
Hong Kong, China

11 October 2013

SKF Anti-Trust Approvals For Kaydon Under Scrutiny

SKF Industries recent statement 10 October 2013, quote :-
"SKF receives anti-trust approvals in USA and Germany and waives CFIUS condition in acquisition of Kaydon Corporation"
is considered deceptive and questionable.

  1. The SKF anti trust conviction for Price Fixing is registered in the French Central Court by the French Minister of Economy; not Germany view http://www.autoritedelaconcurrence.fr/user/standard.php?id_rub=128&id_article=177
  2. The investigation by USA authorities into the Bearing Industry is ongoing, therefore Anti Trust corruption has not concluded. The Auto Industry investigation is concluded and issued penalties with convictions against bearing manufacturers. SKF was not included in this Auto Industry matter.
  3. SKF to voluntarily waive CFIUS conditions for Kaydon acquisition does not exclude the CFIUS investigation view http://en.wikipedia.org/wiki/Committee_on_Foreign_Investment_in_the_United_States

The Kaydon Corporation shareholders are advised to carefully check all statements.

5 October 2013

Schaeffler Replaces CEO Geissinger to Overhaul Strategy

Schaeffler AG replaced Juergen Geissinger as chief executive officer to shift strategy after plans to combine with car-component maker Continental AG (CON) failed.

Chief Financial Officer Klaus Rosenfeld will assume Geissinger's role on an interim basis, the Herzogenaurach, Germany-based company said today in a statement. Geissinger's departure is immediate and by "mutual consent" "With today's change of leadership we have paved the way for the future reorientation of Schaeffler Group and its leadership," Chairman Georg F. W. Schaeffler said in the statement. "We thank Dr. Geissinger for his work and contribution to the success of our company."

Geissinger has led the manufacturer of automotive, aerospace and industrial roller bearings since 1998. His contract would have expired at the end of 2014. Family-owned Schaeffler, which is burdened with debt from becoming the largest shareholder in Continental, is exploring an initial public offering next year, people familiar with the matter said in April.

The leadership change "could reflect the preparation for a potential IPO to de-leverage further," said David Arnold, an automotive specialist at Barclays Plc's investment-banking unit in London, said in an e-mail to clients today.

Debt Figure

Geissinger came under pressure after spearheading a hostile takeover bid for Hanover, Germany-based Continental in late 2008. The offer, made just before global financial markets collapsed, was accepted by more investors than Schaeffler expected, almost leading to the company's collapse as debt ballooned to about 12 billion euros ($16.3 billion).

The bearing manufacturer didn't split with Geissinger in a dispute, Georg Schaeffler said on a conference call with journalists. Rosenfeld has "the full trust" of the whole supervisory board, the chairman said. He declined to comment on when the company is targeting the appointment of a new CEO. Rosenfeld is taking on the top post in addition to his responsibilities as CFO.

A decision on Geissinger's future at Schaeffler had been set for the end of 2013, and his departure now was propelled by "targeted indiscretion in the press, for which we are not responsible," the chairman and Maria-Elisabeth Schaeffler, his mother and the manufacturer's co-owner, said in a letter to employees.

Replacement Snag

A plan by Schaeffler to name Klaus Deller from Munich-based brakemaker Knorr-Bremse AG as CEO was hindered by his current employer, Handelsblatt business daily reported earlier today. Georg Schaeffler declined on the conference call to comment on "personnel speculation."

Deller is head of commercial-vehicle systems at Knorr-Bremse, a family-owned company with sales of 4.3 billion euros in 2012 and more than 19,000 employees.

Knorr-Bremse Supervisory Board Chairman Heinz Hermann Thiele "hasn't talked to Schaeffler about the topic," Eva Seifert, a spokeswoman at the brake producer, said by phone. She reiterated that Deller's contract runs through April 2015.

Rosenfeld, a former Dresdner Bank CFO, was hired in 2009 to help Schaeffler reduce debt. The figure was cut to about 9 billion euros last month after Schaeffler earned 950 million euros in proceeds from selling a 3.9 percent stake in Continental, Europe's second-biggest car-parts maker and the region's No. 2 tire producer.

Stake Cutback

Schaeffler has reduced its holding in Continental to 46 percent from direct and indirect control of more than 90 percent of the stock. Schaeffler has also sold bonds to help refinance loans from the 2009 deal.

In addition to the possible IPO, another option to raise cash would be to bring in a large investor as owner alongside the Schaeffler family, one of the people familiar with the situation said in April.

Schaeffler lowered its 2013 sales forecast in August because of weaker demand at the industrial division. Revenue is expected to increase by 1 percent to 2 percent this year, slower than a previous forecast of 4 percent growth. The company maintained a target of earning 13 percent of sales before interest and taxes


Finally, Juergen Geissinger's legacy to Industry is viewed as controversial giving rise to the first bearing 'Price-fixing' Conviction in 2002, the establishment of the infamous 'World Bearing Association' in 2006 with allegations of fraud, the grand '40 ton bearing fake' Schweinfurt in 2007, commencement of 'Bearing Hacking' in 2008 and bearing marketing by 'public scare' in 2009. We wish Juergen the best for retirement and congratulate Maria Schaeffler in making change for future industry developement

Juergen Geissinger with Maria-Elisabeth
*with comments from Bloomberg EU

30 September 2013

Japanese Bearings Again in Corruption Mode

The aftermath from September 26, 2013 Auto Parts + Bearing Manufacturers scandal costing the American public $US5 billion, according to the US attorney-general Eric Holder; does not include the fallout cost to other countries that may swell over US$10 billion to the family car. This will trigger many global Class Actions demanding compensation far exceeding the penalties handed out by US Antitrust legal decision

These conviction penalties to KOYO + NSK Bearings total over $US170 million and 2013 total fines to Japanese Bearing Manufacturers exceed $US330 million, this is serious money. However, the add-on potential fines from various US Class Actions already filed plus the bearing industry investigations in US, EU + Asia, which are separate from Auto-Parts industry, will further illustrate the serious criminal activity involving executives employed by Bearing Manufacturers.

The Bearing Industry's main concern is the lack of problem solving, with the same old crony people driving the same old techniques with the same old tricks. In response to this USA scandal, NSK President and CEO Mr. Norio Otsuka has stated the same old excuse with the same old words as he did for Japans JFTC conviction penalty, but with some subtle change to outside experts. For the betterment to our industry, NSK's Mr Otsuka and his board must be seen to make punitive, strong and sustainable decisions.

Statement in part by NSK quote: "NSK and its subsidiaries regard the situation with the utmost seriousness and will take comprehensive measures with the help of outside experts and others to ensure strict compliance with all applicable laws and regulations during our corporate activities. We will devote every effort to restoring the trust of all stakeholders and the public"

Actions are stronger than words Mr Otsuka. The Bearing Industry Code of Conduct can assist NSK and other Japanese manufacturers but only with their applied sincerity and willingness to cease this profound corruption - its not impossible

27 September 2013

New Huge Criminal Penalties to Japanese Auto-Parts & Bearing Manufacturers

In one of the biggest organized Corporate Corruption scandal in modern times involving Bearing Manufacturers has crippled reputations and are now subjected to operational collapse in many countries. This is the 6th conviction for corporate & criminal fraud by KOYO BEARINGS and NSK BEARINGS in recent times

Workers at the General Motors plant in Michigan assemble Cadillacs

Executives used 'code names', met in remote locations

US attorney-general Eric Holder says price fixing and corrupt practices have cost the American public $US50 billion.

"Company executives met face to face in the United States and in Japan and talked on the phone to reach collusive agreements to rig bids, to fix prices and to allocate the supply of auto parts sold to United States car companies," he said.

Fines and sentences - USA COURT ORDER SEPTEMBER 26th, 2013

  • Hitachi Automotive Systems Ltd to pay $US195 million criminal fine
  • Jtekt Corp to pay $US103.27 million criminal fine to KOYO BEARINGS
  • Mitsuba Corp to pay $US135 million criminal fine
  • Mitsubishi Electric Corp (MELCO) to pay $US190 million criminal fine
  • Mitsubishi Heavy Industries Ltd to pay $US14.5 million criminal fine
  • NSK Ltd to pay $US68.2 million criminal fine to NSK BEARINGS
  • T.RAD Co Ltd to pay $US13.75 million criminal fine
  • Valeo Japan Co Ltd to pay $US13.6 million criminal fine
  • Yamashita Rubber Ltd to pay $US11 million criminal fine
  • Tetsuya Kunida, Japanese citizen and former executive of US subsidiary of Japan-based automotive anti-vibration rubber products supplier, to serve 12 months and one day in US prison, and pay $US20,000 criminal fine
  • Gary Walker, US citizen and former executive of US subsidiary of Japan-based automotive products supplier, to serve 14 months in US prison and pay $US20,000 criminal fine

The competition watchdog says there is evidence that price-fixing by Japanese auto parts manufacturers has pushed up the cost of some cars in Australia.

The Australian Consumer and Competition Commission is taking legal action against several Japanese firms as part of a global crackdown on alleged price fixing.

It has launched proceedings against the firm Yazaki for alleged price fixing of wire harnesses for Toyota cars. ACCC chairman Rod Sims believes cartel behaviour has pushed up the price of some vehicles. "Wire harnesses can be anything up to 8 per cent of the cost of a car, so this conduct has a serious impact on what people pay for motor vehicle," he said.

"We also instituted proceedings this year for a number of Japanese companies in relation to ball bearings. And we are close to settlement with one or two of those companies at the moment."

Proceedings were launched against Yazaki in December last year, and the matter is due before the Federal Court again at the end of next month.

The ACCC has interviewed witnesses in Australia and Japan as part of its investigations. Mr Sims says the commission is investigating the conduct of a number of other suppliers, but would not go into detail about how many companies are facing scrutiny.

He says fines for cartel behaviour can amount to $10 million.

ACCC plays role in global investigation

The ACCC's investigations are part of a international probe into price fixing of a broad range of car parts, which has now ensnared 20 companies and 21 executives.

Nine companies based in Japan and two executives will plead guilty and pay almost $US745 million in fines for their roles in long-running conspiracies to fix the prices of auto parts sold to United States car manufacturers.

The companies have agreed to pay $US1.6 billion in fines overall.

The US justice department said price-fixed automobile parts were sold to Fiat affiliate Chrysler Group, Ford and General Motors, as well as to the US subsidiaries of Honda, Mazda, Mitsubishi, Nissan, Toyota and Subaru.

In some cases the activity, which involved separate conspiracies to fix prices of more than 30 different products, lasted for a decade or longer, the department's Scott Hammond said.

"Every time we discover a conspiracy involving the automotive industry, we seem to find another one," Mr Hammond said.

Antitrust enforcers around the world were involved in the probe, and Mr Hammond credited Japan's competition agency with first turning up some of the wrongdoing that was part of the settlement.

Among the parts affected by the conspiracies were seat belts, radiators, windshield wipers, air-conditioning systems, power window motors and power steering components.

"In order to keep their legal conduct secret, they used code names and they met in remote locations, then they followed up with each other regularly to make sure the collusive agreements were being adhered to."

"More than 25 million cars purchased by American consumers were affected by the illegal conduct. Each of the companies and executives in the plea deal has agreed to cooperate with the department's ongoing antitrust investigation, the justice department said.

"We will continue to check under every hood and kick every tyre to make sure we put an end to this illegal and destructive conduct," Mr Holder said.

There was no immediate comment from eight of the companies.

Mitsubishi Electric, however, noted that it had cooperated fully with the justice department.

"We accept the terms of the plea agreement and are now focused on moving forward," spokeswoman Cayce Blandard said in a statement.

Mr Hammond said car makers had been concerned about the price-fixing.
"We're talking about an industry with very tight margins," he said.
"And when you have in a car fixed prices on automotive parts that result in higher manufacturing costs, you don't have any problems getting the attention of the victims."
GM was one of several car makers that said it was watching the probe closely.
"We are greatly concerned by the large number of suppliers in the automotive supplier sector who have pled guilty to serious criminal price fixing charges," GM spokesman Tom Henderson said.
"This evidences a culture of anti-competitive activity among a cross section of suppliers in the automotive sector... this is unacceptable."
Among the companies that the justice department's antitrust division settled with previously were Autoliv Inc, Tokai Rika Co Ltd, TRW Deutschland Holding GmbH, Nippon Seiki Co Ltd, Furukawa Electric Co Ltd and Fujikura Ltd.

22 September 2013

The Innovative Bearing Distributor & Global Entrepreneur

Since the 1970's there's been a proliferation of private Bearing companies and self employed globe trotters making friends and creating numerous worldwide bearing deals resulting in Customer end-user satisfaction with price and speed in obtaining stock. In the 1990's came the bearing distributor friends http://www.bearingnet.net/ 'Bearingnet' and to a lesser extent 'Bearingconference' who contributed by inventing services & systems.

In the 2000's this bearing independent camaraderie fueled by the internet, was seen as a serious marketing threat by some bearing manufacturers and hence legal action was taken by SKF against 23 private bearing companies for importing SKF bearings from another country into USA :- http://www.law360.com/articles/7193/supreme-court-refuses-gray-market-case the so-called 'GREY MARKET' and the beginning of the bearing cold-war that is still apparent today. SKF lost another legal stoush and lost many bearing dealer friends who were burnt trying to defend Entrepreneurs rights to free enterprise. The 'Bearingnet' still offers the same system albeit improved and SKF still complains about the Grey Market, but then SKF without much due consideration to Law invented false Counterfeit claims, Bearing Hacking and even a fake court case in Sweden involving actors claiming to receive 1 year's Jail for alleged interference to copyright. http://www.skf.com/group/news-and-media/news-search/2013-02-04-swedish-court-rules-for-criminal-conviction.html

Today, we have more concerns for Bearing Distributors by SKF who over many years successfully acquired bearing manufacturers and closed out marketing rights to independents creating unemployment amongst other unsavory events. There's little skill in this SKF process and absolutely no innovation or creativity, all that's required is money while bankers are lined up for SKF's taking, at the expense of other bearing people employed in the market place but another bearing brand removed into thin air

The current push by SKF to acquire Kaydon Corporation contains a comfort statement by SKF for bankers well being and how well Kaydon products will fit into SKF's marketing system - But little on due process to employment or any downsize due to duplication and nothing to explain the great impact to the Bearing Industry in general.

Bearingcode has lodged an Objection.pdf application against SKF to acquire Kaydon, this Notice of Objection will be determined by the US Federal Trade Commission, Washington to decide what proceedings will be required. If you would like to participate in the Objection or lodge your views discreetly then kindly email bearingcode soonest

15 September 2013

Big Money By Big Business For Compliance

We received a near record response from last weeks news re SKF to aquire KAYDON, and noted comments on other SKF takeovers of SNFA FRANCE, PEER USA, ERIN USA. Many thanks for your interest to this large $1.2 Billion proposal.

Mergers & Acquisitions (M&A) http://en.wikipedia.org/wiki/Mergers_and_acquisitions normally require a mandatory 'Due Diligence' on all parties with details to any corruption or conviction a necessary declaration to Shareholders. These are main reasons why Big Business is now investing in various areas of Corporate Governance compliance issues.

Bearing Manufacturers have not invested in compliance and preferred to appoint PR managers to talk themselves away from obvious problems "is there an elephant in the room ?" And it wont go away

For example, JPMorgan Chase is to spend another $4 Billion to Fix Risk and Compliance Issues, whilst disgraced bike rider Lance Armstrong settles Compliance Rules with big money to his sponsor's hard line demands.

JP MORGAN CHASE Chairman and CEO Jamie Dimon interview at New York Exchange for Compliance Funding

NEW YORK, Sept 12 (Reuters) - JPMorgan Chase & Co plans to spend an additional $4 billion and commit 5,000 extra employees to fix risk and compliance issues after a slew of investigations by regulatory authorities, the Wall Street Journal reported on Thursday.

JPMorgan will spend $1.5 billion on managing risk and complying with regulations and plans to add $2.5 billion to its litigation reserves in the second half of the year, the Journal reported. The bank will also increase its risk-control staff by 30 percent, the WSJ said, citing people familiar with the matter.

JPMorgan said on Monday that it would add more than $1.5 billion to its legal reserves in the third quarter and 3,000 people had been added to control functions.

Lance Armstrong fesses up with Oprah Winfrey on Compliance or a lack thereof

6 September 2013

Objection to SKF Acquisition of KAYDON USA

September 5, 2013, SKF and KAYDON announced in USA today the signing of a definitive merger agreement under which SKF will acquire Kaydon for $35.50 in an all-cash tender offer. The transaction is expected to close in the fourth quarter of 2013

A priority response from The Wall Street Journal (WSJ) and Shareholder rights attorneys at Robbins Arroyo LLP stated "Is the Merger Best for Kaydon and Its Shareholders?"



Notice of Objection

Bearingcode objects to SKF's acquisition out of hand for Documented and Articulated reasons. Further objections received late today from Consumer & Competition groups actively pursuing options via Bearingcode.

The Bearing Industry is currently under massive changes to direction with new legal Convictions and continuing investigations by DOJ Washington, EU Commissioners Belgium with various Class Actions filed in the Michigan Court USA.

SKF is named in every bearing investigation for alleged Corporate crime and with Convictions registered in FRANCE EU; SKF is now considered a risk to namely Price Fixing and Anti-Monopoly, having effected the market mechanism and given rise to bearing monopolistic Cartel operations

SKF's acquisition of Kaydon's will reduce the amount of bearing manufacturers, increase effects of monopoly mechanism and drastically increase Bearing Distributors vulnerability who rely on independent marketing but sacrificing their income and good-will operations to SKF. Precedence comes from SKF's past acquisitions of RIV-ITALY, STEYR-AUSTRIA, MRC-USA. All were promised ongoing commitments to both brand & business but only reduced to ashes with 1000's unemployed with side kick brand & country benefits to SKF Sweden.

With innovation and creativity further curtailed, there remains only 7 bearing manufacturers controlling 87% of global production.
If your company desires to object to this acquisition then you have the following:

- Object to http://www.ftc.gov/ (Federal Trade Commission USA)
- Email to http://www.justice.gov/ (DOJ Washington)
- Email Bearingcode ian@bearingcode.com can be anonymous

2 September 2013

Encouraging Cooperation From University to Bearings

From releasing Bearingcode's education program, we received a very positive response from the Faculty of Industrial Technology at Chantaburi University, Thailand which is centrally located to Cambodia Vietnam Laos Burma Malaysia Singapore Indonesia and many other neighbouring countries with direct flights from the capital to every major Asian city.

Rambhai Barni Rajabhat University (RBRU), Chantaburi,THAILAND http://www.rbru.ac.th/rb_eng/ is currently working with other Industries similar to Bearings including Gem Stones, Ceramics and has obtained a Master of Engineering Program in Engineering Management gaining recognition with excellence in research, and teach courses that includes Electronics suitable for collaboration + exchange programs with Bearingcode's relations with 'CALCE' at The University of Maryland USA http://www.calce.umd.edu/

Images for map of Chanthaburi,THAILAND

Major aims at the Chantaburi University Faculty of Industrial Technology and Gemological Science is to provide up-to-date and high quality programs for students with Curriculums been specially designed offering students a unique opportunity to improve, develop and increase their academic knowledge and skills. Students are taught the fundamental theories through a combination of lectures and tutorials, supplemented by the practical aspects of particular disciplines which are taught through laboratory and project-based work. On successful completion of the program the student will have gained a deeper understanding of the principles and practice of the various topics.

The Faculty has close research collaboration with a number of national institutions in a wide range of industrial technology. Highlight current programs include Electric, Construction, Ceramics, Industrial Design, Industrial Mechanics, Industrial Technology, Industrial Arts, Printing, Metal Mechanics, Ceramics Technology, Package Design, Gemological Science, Logistics Engineering and Management, Master of Engineering Program in Engineering Management.

Chanthaburi University states "We encourage international institutions to establish collaboration, exchange projects with our Faculty. We invite overseas students, lecturers and universities to contact us" http://www.rbru.ac.th/rb_eng/temp.php?fname=5&faculty=6

The Chanthaburi University engineering faculty provides Conferences with many local Industries including Petroleum that are specifically designed for creativity, design and business marketing & management enhancement

We thank the Chanthaburi University for there kind cooperation to develop the future education regional policy of Bearingcode. Chanthaburi's higher education with basic bearing knowledge programs and with our support, can provide an excellent opportunity to all concerned throughout the Asian bearing fraternity. We welcome any comments from Bearing Manufacturers, Distributors and related Industries info@bearingcode.com

26 August 2013

SAE 2013 Counterfeit Parts Avoidance Symposium

The SAE 2013 Counterfeit Parts Avoidance Symposium will provide an open technical forum for the education of our customers to learn about the negative impact of counterfeit electronic parts, bearings in aviation & all others and the processes to mitigate that impact on their business. Topics include:

  • Identification
  • Risk Assessment
  • Avoidance Protocols
  • Test Methodologies
  • Compliance

September 27, 2013 Montreal, Quebec, Canada - Palais des conges de Montreal


There are SAE members who work within the Bearing Industry globally. The ACBG/SAE 'Aircraft Bearing Group' meet every 6 months to conduct engineering standards for aviation, military and general applications under the guidelines of SAE International. Further ACBG/SAE information please contact: 'MaureenSAE' lemankm@sae.org

21 August 2013

USA Bearing Manufacturer Seeking Acquisitions

USA national bearing manufacturer of over 100 years experience, selling product through bearing distributors and select OEMs is seeking to acquire other small manufacturers of bearings or similar product line sold through the same distribution channels, up to $3 million in sales preferably in USA

Client is willing to look at other opportunities

Inquires kept confidential.

Please contact:PSFairport@frontiernet.net

18 August 2013

Bearing Industry News Plagiarism

There are now more 'Bearing Industry News' services on the internet, most offering the exact same repeated news in high glossary with brands in high logo definition. Nothing really wrong in that.

However most have no Bona fide address details, no names, no country apart from a standard type 'email fill in' Contact procedure that you never know who receives your enquiries. This operation can result in fraud or other criminal activity by collecting your name and address details or at worse your bank account to foster there own requirements

There are 2 Chinese and a UK bearing news services offering these copy-cat scams, all it seems without qualified bearing personal. One bearing news from China plagiarised every news articles written by both ebearing & bearingcode until the threat of our legal action, although most difficult to enforce in China

Bearing News editorials are essential part of free speech and written by those who are dedicated to the bearing industry and certainly not copy-cats who plagiarise every detail in order to make an easy buck.

The Bearingcode only recommends a 'Bearing Industry News' service who clearly provide (without an endless search) full name of Contact details with address & country identification, and with any associated industry member eg. SAE International. An easy prerequisite one would think

5 August 2013

Bearing Program for Asian Region

We welcome the contribution CALCE offers to the Bearing Industry and a major partner to Bearingcode's 'Asian Bearing Academy'. The facilities CALCE offers from the University of Maryland USA is unique, professional, academic and responsible R&D for the world of Bearings, allowing higher education to expand throughout the local Asian basin. The learning combination of basic bearing knowledge up to Academic technology level, refinement of Marketing & Commerce practices, and basic legal knowledge is the first of its kind

The Asian Bearing Academy is not under any political or corporate policy, and offers a non-biased social learning programs as a 'Added Value' promotion to industry

Below is the latest example of CALCE bearing research from the August 2013 eNews released today


Building 89, Room 1103
University of Maryland USA
College Park, MD 20742
Tel: 301-405-5323
Fax: 301-314-9269

13 Comparative Evaluation of Metal and Polymer Ball Bearings

Bearings<13 Comparative Evaluation of Metal and Polymer Ball Bearings>, Ranjith-Kumar Sreenilayam-Raveendrana, Michael H. Azarian, Carlos Morillo, Michael Pecht, Katsuyuki Kida, E.C. Santos, Takashi Honda, Hitonobu Koike Wear of Materials<http://www.sciencedirect.com/science/journal/00431648/302/1>, April-May 2013

The usage of polymers in bearings has been increasing in recent years due to certain valuable tribological properties, including their ability to self-lubricate and their resistance to corrosion. These advantages have encouraged manufacturers to use polymer bearings incorrosive and lubricant-freework environments as well as in applications in which weight reduction is desirable. The objective of this study was to compare the performance of polymer with metal in rolling contact. This was carried out by monitoring the acoustic emission, vibration and operating speed of metal and polymer bearings during their operation.

A set of tests was conducted on 8mm radial bearings, each of which comprised a polymeric inner race,outer race, and cage, as well as 52mm thrust bearings, each of which comprised a polymeric top race, bottom race, and retainer. These bearing components were manufactured using two different polymers: polyetheretherketone (PEEK) and polytetrafluoroethylene (PTFE).The rolling elements used in these bearings were made of alumina. The performance of these materials in both radial and thrust bearings was evaluated.

A second set of tests was conducted to compare the performance of these polymers with stainless steel in similar bearings. 8mm polymer ball bearings and 8mm metal bearings under dry lubrication conditions were used in these tests. Performance was compared using vibration, acoustic emission, and changes in rotational speed. A lower level of vibration was observed with the usage of PEEK in the bearing elements compared to that of PTFE and metal. However, the transfer film formation in PEEK bearings resulted in the unstable operating speed of the bearing. Stable operating speeds after an initial running-in period was observed due to transfer film formed in carbon-filled PTFE bearings. However, a higher level of vibration was observed in this material when compared to that of the PEEK bearings. Read more<13 Comparative Evaluation of Metal and Polymer Ball Bearings>

Emblem of Asian Bearing Academy

27 July 2013

Price Fixing + Fake Bearings Same Bearing Corporation

Price Fixing combined with alleged Fake Bearings by 'KOYO/JTEKT' www.koyousa.com strengthen yesterday when countries including Russia revealed 'nuance' existed from known manufactured goods and imports without Identification is now detectable

KOYO/JTEKT make no distinction between their admission to Price Fixing and that of False Fake Bearing activity, but we're expected to believe that one is acceptable and the other not. This alleged combination may result in binding legal hearings both Civil & Criminal, as matters appear jointly and severally linked or at least practiced simultaneously

The KOYO/JTEKT has prior Price Fixing convictions with penalties in multi millions $, there record includes:
- Japan prior to 2000 with NSK NTN NACHI
- France in 2002 with SKF SCHAEFFLER SNR NSK
- Japan in 2013 with NTN NSK NACHI
- Canada in 2013 with various manufacturers
- Australia in 2013 announcement of trial with Koyo admission
- Now facing serious allegations and charges in other Countries/Continents

In Russia, nuance in a considerable part, is now possible to distinguish between the genuine product from fake and illegal imports rather quickly. Its known as "ID of CCD Request" meaning Cargo Customs Declaration on the delivered product.

In this formula, if the supplier does not give ID or gives a fake ID, then most likely the product is considered counterfeit. It also means that the company conducts other illegal activitiy ranging from tax avoidance and violations to customs law. Russia claims unscrupulous firms are afraid to report the number of CCD as the ID instantly reveals their illegal activities leading to possible police raids and tax audits.

Грузовая таможенная декларация Russian translation can be obtained: https://translate.google.com/#ru/en/

Further details to this Russian story will be released soonest, however similar schemes elsewhere have failed due to wide spread corruption from custom authorities as seen in countries like Australia but worth a review.

23 July 2013

Auto + Bearing Industries Legal Crisis

Recent Canadian and Australian legal proceedings filed against KOTO/JTEKT + other Japanese bearing manufacturers, have commenced a flurry of interest by global Law Firms seeking compensation for clients, not only from Price Fixing but for various other allegations of corruption.

Bearingcode can confirm many site viewers from numerous Government departments, Consumer Groups, Legal Institutions and stock listed Corporations indicating more challenges facing the Bearing Industry.

Significant allegations of bearing corruption is now likely from Auto Industries seeking relief for dire conditions in:
Detroit http://www.ottawacitizen.com/business/story.html?id=8679405
Canada Taxes wages trade policies hurting Canada auto
Australia http://www.news.com.au/business/australian-motor-industry-federation-chief-richard-dudley-predicts-dire-future/story-e6frfm1i-1226669868230
and other OECD countries involved in Automotive components

DOJ Washington has requested more NSK documents, KOYO has admitted corrupt involvement, NTN and NACHI confirm investigations; with further flow-on allegations of corruption in Europe, Asia, Australia & South America, most cases involving the behaviour of SKF and SCHAEFFLER

The irony of these challenges, none of the above bearing manufacturers have implemented independent anti-corrupt policies, although SKF & NTN stated their internal 'strict' Code of Conduct since years is sufficient and NSK has shuffled around their own compliance people as 'good enough' - All contentious matters in Court pleas & sentencing adding reason for more Class Actions. It should be noted that Price Fixing in most countries now carry imprisonment for executives, but will this change arrogance the core principle of corruption?

Unfortunately, these legal concerns against the Bearing Industry will continue for several years effecting bearing distributors, customers and reputations; and without deliberate proper regulation to prevent yet another fiasco then bearing floor prices and its public persona will deteriorate. Previously stated but worth another reminder

16 July 2013

Australian Government Legal Action Against Koyo Bearings

The Australian Competition and Consumer Commission (ACCC) has instituted civil proceedings in the Federal Court against Koyo Australia Pty Ltd (Koyo) for alleged cartel conduct relating to the supply of ball and roller bearings for use in motor vehicles and industrial applications.

The ACCC alleges that in 2008 and 2009, Koyo and at least two of its competitors made and gave effect to two separate cartel arrangements for an increase to the price of bearings to their aftermarket customers. Ball and roller bearings are widely used to allow a movable connection between mechanical items. They are an essential component in a wide range of products such as motor vehicles, mining conveyors and farm machinery.

"The ACCC's focus on cartel conduct sends a strong message. It is crucial for the proper functioning of business in Australia that the ACCC continues to tackle cartel conduct with the full force of the law," ACCC Commissioner Sarah Court said."Cartel conduct such as price fixing not only cheats consumers and other businesses but is damaging to the Australian economy."

The ACCC is seeking pecuniary penalties, declarations and injunctions.

Koyo has cooperated fully with the ACCC's investigation into the alleged cartel and has admitted to the conduct. The ACCC's action follows enforcement action against Japanese bearing manufacturers by the Japan Fair Trade Commission. A directions hearing has been set down for 14 August 2013 at 9.30 am before Justice Edmonds in the Federal Court, Sydney

Matters relating to alleged Koyo/JTEKT and unregistered & unincorporated World Bearing Association monopoly for misleading consumers and 'bearing hacking' activity is under current investigation by other country commissions

15 July 2013

Japanese Bearing Koyo Fined $5 Million Canada

OTTAWA, ONTARIO July 13, 2013. The Competition Bureau announced today that JTEKT Corporation (KOYO) a Japanese bearing manufacturer, pleaded guilty to two counts of bid-rigging under the Competition Act and was fined $5 million by the Superior Court of Quebec in Gatineau for its participation in an international bid-rigging cartel.

JTEKT's plea relates to automotive wheel hub unit bearings supplied to Toyota Motor Manufacturing Canada Inc. (Toyota) between 2007 and 2013. The evidence shows that JTEKT secretly conspired with another Japanese bearings manufacturer to submit bids or tenders in response to requests for quotations to supply Toyota. JTEKT is the first party to plead guilty in relation to the investigation into automotive bearings. There is no allegation of wrongdoing against Toyota, the customer of the companies under investigation.

"Companies that engage in bid-rigging and other cartel offences manipulate and suppress the competitive process to the detriment of all Canadians," said John Pecman, Commissioner of Competition. "Cracking down on cartel offences that impact Canadians has been, and will continue to be, a top priority for the Bureau."

Canada is Toyota's seventh-largest global sales market, and approximately 50 percent of the vehicles it sells in this country are made in Ontario. As an example, 271,193 Corollas, 119,908 Matrix and 81,929 RAV4s were produced in Canada in 2008 and 2009 and assembled in Ontario.

The Bureau became aware of the bearings cartel by way of its Immunity Program. Under the Immunity Program, the first party to disclose to the Bureau an offence not yet detected or to provide evidence leading to a referral of evidence to the Public Prosecution Service of Canada (PPSC) may receive immunity from the PPSC, provided that it fully cooperates with the Bureau's investigation and any ensuing prosecution. Subsequent cooperating parties may receive lenient treatment under the Bureau's Leniency Program. These programs provide powerful incentives for organizations and individuals to come forward and cooperate with the Bureau's investigations.

JTEKT participated in the Bureau's Leniency Program and provided substantial assistance to the Bureau and the PPSC. The company's cooperation has saved considerable costs associated with the investigation and prosecution.
Under the bid-rigging provision of the Competition Act, it is a criminal offence for two or more bidders, in response to a call or request for bids or tenders, to agree on the bids submitted, to agree that one party will refrain from bidding or to agree that one party will withdraw a submitted bid, in each case without informing the person calling for the bids of this agreement.

Earlier this year, under a separate Bureau investigation, Furukawa Electric Co., Ltd. and Yazaki Corporation, two Japanese suppliers of motor vehicle components, pleaded guilty to bid-rigging under the Competition Act and were respectively fined $5 million and $30 million for their participation in an international cartel.

The Competition Bureau, as an independent law enforcement agency, ensures that Canadian businesses and consumers prosper in a competitive and innovative marketplace.
For media enquiries, please contact:
Media Relations
For general enquiries, please contact:
Information Centre
Competition Bureau
819-997-4282 / Toll free: 1-800-348-5358
TTY (hearing impaired): 1-800-642-3844

14 July 2013

The Pen is Mightier Than the Sword

Although at first site this article may have little relevance to Bearing Industry business & education, then please read on.

Bearingcode last year recognised Pakistan's 16 year old girl Malala Yousafzai who was shot in the head for demanding an education; recovered and yesterday addressed the United Nations with the chilling comment "The Pen is Mightier Than the Sword" famous words, famous knowledge. http://en.wikipedia.org/wiki/The_pen_is_mightier_than_the_sword

Malala's final UN comment: "So let us wage, so let us wage a glorious struggle against illiteracy, poverty and terrorism, let us pick up our books and our pens, they are the most powerful weapons. One child, one teacher, one book and one pen can change the world. Education is the only solution. Education first" Thank You.

Full text view:

Education campaigner Malala Yousafzai delivers a speech to the UN on her sixteenth birthday, Malala Day Photograph: Stan Honda/AFP/Getty Images This is a transcription of the speech that Malala Yousafzai gave to the United Nations on 12 July 2013, the date of her 16th birthday and "Malala Day" at the UN.


12 July 2013

Consumer Bearing Class Actions Updates

Class Actions already filed against major bearing manufacturers SKF SCHAEFFLER NSK NTN JTEKT NACHI in USA and Canada have been upgraded with further legal 'add-on' information. Legal add-ons are permitted up to the final hearing date.

This does not include progress criminal investigations by USA EU Singapore & South American governments against bearing manufacturers. Japan;s FTC has already convicted 4 major bearing corporations. The Canadian Class Action has already filed against the above bearing manufacturers; for add-ons please contact the below listed legal group

Canada Bearing Industry class action alleges that the Defendants unlawfully conspired to fix, increase, and/or maintain the price of bearings sold in North America and elsewhere. Bearings include both automotive and industrial machinery bearings. Bearings are friction-reducing devices that allow one moving part to glide past another moving part.

For further information concerning the Bearings class action or to ensure that you receive updates about the status of the class actions (including any settlements), please contact Vincenza Mastroianni at 1-800-461-6166 ext 2446 or e-mail Vincenza by clicking on the Contact Us link.

London Office
680 Waterloo Street
P.O. Box 2520
London, Ontario
N6A 3V8
Phone: (519) 672-2121
Fax: (519) 672-6065
Montréal Affiliate Office
480 Boulevard Saint-Laurent
Suite 501
Montréal, Québec
H2Y 3Y7
Phone: (514) 849-1970
Fax: (514) 849-7934
Québec Affiliate Office
43 Rue Buade
Bur 320
Québec City, Québec
G1R 4A2
Phone: (418) 694-2009
Fax: (418) 694-0281
Toronto Office
100 Lombard Street
Suite 302
Toronto, Ontario
M5C 1M3
Phone: (416) 362-8334

8 July 2013

Six Sigma - Marketing for Bearings

Six Sigma https://en.wikipedia.org/wiki/Six_Sigma is rarely viewed as a marketing guru, sales advantage saver or the value-added product item. Perhaps Six Sigma details have never been presented to main stream audiences, clearly understood or too difficult to explain, however on reflection Six Sigma may prove itself the leading edge to securing many 'NGO' contracts http://www.ngo.org/ and value-added enhancements

The GE Corporation has a dedicated Six Sigma site for their Customer, Process & Employee http://www.ge.com/sixsigma/keyelements.html this example can be utilized in many industries, but individual company training is considered essential to become operational. There are other training methods that offer more exact and knowledgeable from a value-added training scheme eg. Bearing University proposal, on-line without interaction, work-time with pay, or both. Six Sigma training could also assist in eliminating counterfeiting, advance warning to employer/employee conduct and to program Bearing companies to become further productive, another process preference for Customers

For training options view http://thesixsigmaexperts.com/category/six-sigma-training/

Bearingcode and 'Calce' University of Maryland USA proposal for a Asian Bearing academy/university may adopt a Six Sigma introduction program with on going education referrals from other Universities with a Six Sigma curriculum. Dr Diganta Das from 'Calce' has a Six Sigma Black Belt and a member of IEEE, IMAPS and SMTA can assist in a creative role for Bearingcode in Maryland USA and the Asian academy proposal http://www.calce.umd.edu/general/faculty/bios/das.html. At this stage Thailand is favoured

We acknowledge SKF President & CEO Dr Tom Johnstone as a distinguished black belt Six Sigma holder; invite & encourage every bearing manufacturer especially from Thailand and neighbouring Japanese bearing powerhouses NSK etc. to participate in this and future training programs

Dr Diganta Das 'CALCE'Six Sigma InsigniaBearing University - Thai
1 July 2013

Response to Value-Added Bearing University

Reaction for an Asian bearing academy with benefits from value-added products was positively received by various countries and other industry groups.

Although this project originated for Bearings, other Industries can provide increased value-added goods, services & smart knowledge from another perspective. Japan China & Korea auto manufacturers together with mineral rich Australia & Brazil gave clear indication to participate in this venture, Australian New Zealand Banks were responsive as with Victorian Auto Chamber of Commerce http://www.vacc.com.au/

Dr. Diganta Das (digudas@calce.umd.edu) Senior lecturer from 'CALCE' university stated that a concentrated effort should be made to commence the Bearing Academy by November 2013. There were no objections on location in either Shanghai or Thailand as both understand the importance & requirements to exports and imports of Counterfeiting and to Value Added goods https://en.wikipedia.org/wiki/Value_added

Bearingcode welcomes further comments to this proposal including Auto Industrial & Agriculture spare part related groups especially those combating counterfeit competition.

Footnote: The Schaeffler group resurrected Bearing Hacking in a latest Press release 2013.06.28 "Schaeffler destroys 26 tons of counterfeit rolling bearings" - We sincerely trust Schaeffler will try see the benefits to popular change from Counterfeit to the merits of Value Added goods

23 June 2013

Bearing Scenario to Increase Market Value

From false industry claims of Fake or Counterfeit bearings been overstated many times then reality finally strikes with the real-thing; becomes over-shadowed, over-exposed and lacks spontaneity to authentic headlines. The bulk of fake bearings are isolated and lack the genuine feeling of quality, high value of packaging and the smell of cheap lubricant - We all know this scenario. If fake bearings did have similar aspects as the genuine product then these factories of origin would be heavily capitalized by banks - but for what reason, to only get caught ?

In the case of Electronic Industry, is relative easy to copy a micro board & circuitry, disguise the origin and difficult to prosecute. Women's copy handbags have another scenario, everybody wants a fake Prada ! The Rolex watch has a different scenario, values range depending on the degree of copy quality from $25, $50, $250, $600 to the real thing. Every product capable of imitation cannot be compared to a standard formula apart from price. The Swiss anti-corruption site http://www.stop-piracy.ch/en/candp/cap50.shtm is represented by many industry leaders as board members that gain invaluable scenario information reflecting on the value-added price for Swiss products.

'Calce' http://www.calce.umd.edu/ for its work on counterfeits and fakes, is a team of professionals educating university students who will pass on this intellectual knowledge in the work place. Bearings likewise, have a fundamental obligation to industry that a genuine scenario does exist, not to be fooled by marketing propaganda as witnessed by our Corporate leaders that may eventually lead to other corrupt activity

To create a value-added Bearing product similar to Electronics by 'Calce' is an accepted case for genuine market value

16 June 2013

Bearing Education + Commerce Program

Bearingcode has received renewed interest to establish a permanent Bearing Industry 'Education + Commerce' Academy in Asia. This program was first initiated in our news article 17 December 2012 and since then bearing corporations in USA EU and ASIA have all expressed some interest without commitment to funds

China conglomerate C&U Bearing Group http://www.cugroup.com/en/pro.asp?id0=2&id1=12 will evaluate further and report to Bearingcode once full details are known. We can confirm at this stage, possibilities are for Shanghai or Thailand depending on suitable facilities

We also have positive cooperation with 'CALCE' at the University of Maryland USA gaining strong connections in China Japan Korea & Russia with similar education programs http://www.calce.umd.edu/general/education/index. for Electronics and Bearings. http://www.calce.umd.edu/chinese.htm http://www.calce.umd.edu/japanese.htm http://www.calce.umd.edu/korean.htm

We welcome support from all walks of the Bearing Industry, especially manufacturers wanting valuable exposure in Education & Commerce. This program not only for Asia, but globally based and operated

Further information can be obtained from Ian McPherson ian@bearingcode.com

11 June 2013

Academic Symposium Dealing All Counterfeits

CALCE "Center for Advanced Life Cycle Engineering" http://www.calce.umd.edu/ at the University of Maryland USA will conduct a Counterfeit workshop involving many leading Corporations and Government Departments who are sincere in obtaining knowledge and avoidance when Counterfeiting is problematic.

'CALCE' established to combat counterfeits in the 'Electronic Industry' has since created a 'Bearing Industry' program hence Bearingcode's active participation with many like-minded Organizations. This assists to eliminate all claims of Bearing-Hacking by installing an independent body for accountability + sustainability.

Program Chair: Dr. Diganta Das diganta@umd.edu

Full Program Information and Registration Details at http://www.smta.org/counterfeit/

CALCE Offers Counterfeit Part Avoidance and Detection Workshop
June 25-27, 2013

LOCATION: Marriott Inn & Conference Center
University of Maryland, College Park, MD

CALCE has the honor of working with some the leading organizations in the world. These organizations are either CALCE Consortia members, or have used our test and analysis services, or have contracted research with CALCE through the University Office of Research Advancement and Administration.

  • ABB Switzerland Ltd
  • ADC
  • Airpax
  • Agilent Technologies
  • Alcatel-Lucent
  • American Competitiveness Institute
  • Amkor
  • Amphenol
  • Apple Computer
  • Arbitron
  • Arcelik, Turkey
  • ARINC Engineering Services
  • ASC Capacitors
  • ASCO, China
  • ASE
  • Astec, China
  • Astronautics
  • Atlantic Inertial Systems
  • AVI
  • Axsys Engineering
  • AXSYS Technologies
  • BAE Systems
  • Bio Assay Works
  • Blue Wave Semiconductors
  • BMP Center of Excellence
  • Boeing
  • Bose
  • Bosch
  • Branson Ultrasonics
  • Brooks Instruments
  • Brush Wellman Inc.
  • Broadwing
  • Calient Optical Components
  • CAPE, China
  • Capricorn Pharma
  • Cascade Engineering Services
  • Caterpillar
  • Celestica International
  • CISCO Systems
  • Compressor Electronics
  • ConnNtext Associates
  • Cornell University
  • Crane Aerospace & Electronics
  • Curtiss-Wright, Canada
  • Daimler, Germany
  • De Brauw Blackstone Westbroek
  • Defense Logistics Agency, UK
  • Dell Computer Corp.
  • Della
  • DRS EW Network Systems
  • DRS Technologies
  • Dynamic Details Incorporated
  • EACEVI Technology
  • EIT
  • Embedded Computing & Power
  • European Aeronautic Defense and Space CCR-Airbus, France
  • Embedded Computing and Power
  • EMC Corporation
  • Emcore Corporation
  • Emerson Advanced Design
  • Emerson Electric
  • Emerson Energy
  • Emerson Appliance Controls
  • Emerson Motors
  • Emerson Network Power
  • Emerson Process Management
  • Energetics Technology Center (ETC)
  • Ericsson AB, Sweden
  • Engent
  • Essex Corporation
  • Exponent
  • Fairchild Controls
  • Filtronic Comtek
  • Flextronics
  • Food and Drug Administration
  • Frontier Technology
  • General Dynamics Advanced Information Systems
  • General Dynamics Land Systems
  • General Electric
  • General Electric Healthcare
  • General Electric Aviation
  • General Electric Faunc
  • General Electric Research
  • General Motors
  • Guideline
  • Gentag
  • Goodrich (Engine Control Systems, UK)
  • Hamlin Electronics Europe
  • Hamilton Sundstrand
  • Harris Corporation
  • Henkel
  • Honda
  • Honeywell
  • Howrey, LLP
  • Huawei, China
  • Impact Technologies
  • Infineon
  • In-Sink-Erator
  • Instit. Nokia de Tecnologia, Brazil
  • Intel
  • Intellipark LLC
  • Itron
  • John Deere
  • Johns Hopkins University
  • JDSU-Communications Test
  • Johns Hopkins University-Advanced Physics Laboratory
  • Johnson and Johnson
  • Juniper
  • Kemet Corp.
  • Kimball Electronics
  • Kostal
  • L3
  • Laird Technologies
  • Lansmont Corporation
  • LeBarge
  • LG, Korea
  • Little Optics Division, Nomadics
  • Liebert Power and Cooling
  • Lockheed Martin
  • Lucent Technologies
  • Lutron
  • M&T Co.( Division of CDI Government Services)
  • MacDermid
  • Magna Donnelly Electronics
  • Maxion Technologies
  • Medtronic Incorporated
  • Microsemi
  • Microsoft
  • Milord Technology Ltd
  • MKS Instruments
  • Mobile Digital Systems
  • Motorola
  • MTEC
  • n-Code
  • NASA
  • National Oilwell Varco
  • National Transportation Safety Board
  • Naval Surface Warfare Center
  • Neltek
  • Netapp
  • NIC Components
  • Nokia, Finland
  • Nokia Siemens Network, Finland
  • Nordostschweizerische Kraftwerke AG (NOK)
  • nCode International
  • Northrop Grumman
  • National Transportation Safety Board
  • NXP Semiconductors
  • Ortho-Clinical Diagnostics
  • Paratek Microwave
  • Pennsylvania State University (CISP, P/M Lab)
  • PCO Integrated Warfare Systems
  • Petra Solar
  • PEO Integrated Warfare
  • Philips Electronics, The Netherlands
  • Philips Medical Systems
  • Philips Lighting Systems
  • Pole Zero
  • Potomac Photonics
  • Practical Engineering
  • Pressurebiosciences
  • Qualmark
  • RadiSys
  • Rain Bird
  • Raytheon
  • ReliaSoft Corporation
  • Research in Motion, Ltd., Canada
  • Respironics
  • Reactive Nano Technology
  • Rockwell Collins (Rockwell Automation)
  • Rolls-Royce, UK
  • Rosemount
  • Rudolf Engineering
  • Saab Avitronics, Sweden
  • Samsung Electro-Mechanics, Korea
  • Samsung Mechatronics & Manufacturing Technology, Korea
  • Samsung Memory, Korea
  • Samsung Techwin Co., Ltd., Korea
  • Science Application International Corporation (BD SYSTEMS)
  • Sandia National Labs
  • Sandisk
  • S.C. Johnson Wax
  • Schlumberger
  • Schweitzer Engineering Labs
  • Seagate Technology
  • Selex-SAS
  • Sensor Com
  • Sensors for Medicine and Sciences
  • Silicon Valley Expert Witness Group
  • SiliconExpert Technologies
  • Skyworks
  • SolarEdge Technologies, Israel
  • Space Systems Loral
  • Stanford University
  • Starkey Laboratories
  • Sun Microsystems
  • Superconductor Technologies
  • Sychip
  • Symbol Technologies
  • Team Corporation
  • Team Pacific
  • Tekelec
  • TEMIC Servicios
  • Tech Film
  • Teradyne
  • The Bergquist Company
  • The University of Michigan
  • Tin Technology
  • Tollgrade Communications
  • Toshiba, Japan
  • Trace Laboratories
  • TRW Automotive, UK
  • TruePosition
  • TUBITAK SPACE Tech. Research Institute, Turkey
  • U.K. Ministry of Defense
  • University of Dayton Research Institute
  • U.S. Army
  • U.S. Army Armament Research Development Engineering Center
  • U.S. Army Material Systems Analysis Activity
  • U.S. Army Research Lab
  • U.S. Army Preventive Maintenance Checks and Services
  • U.S. Air Force
  • U.S. Naval Surface Warfare Center
  • UVA
  • Vectron
  • Vestas Wind System, Denmark
  • Virginia Tech
  • Vitesse
  • Weil Gotshal & Manges LLP
  • Whirlpool
  • White Rogers
  • WiSpy
  • Woodward Governor
  • Zentech Manufacturing
3 June 2013

Bearing Seminar 'Price Fixing Avoidance + Fallout'

The bearingcode will conduct a Seminar on Corporate Monitoring and the Fallout effects from Price Fixing on July 10 & 11, 2013 Thailand at Phuket's Indigo Pearl Resort http://www.indigo-pearl.com/ This seminar will be chaired by bearingcode's President Ian McPherson with guests speakers from Japan, Thailand, Germany and USA and depending on the numbers of delegates, Lawyers from United Kingdom will be invited.

The seminar's aim is to better educate executives and to recognize the downside of Price Fixing, danger effects both from inside and outside their corporation and what ramifications for future contracts and on Government utilities + Big business. Whilst avoidance can also escape the boundaries of good governance; placing simple procedures without concerns for imprisonment and penalties exceeding years of cashflow. Plus overflows from consumer 'Legal Class Actions' that can cripple the corporate existence and executive lifestyles. And time for general forums to conclude the seminar.

We highly recommend your attendance and under no liability basis.

A special 2 night room rate is available at Indigo Pearl, the location just 2 miles from Thailand's Phuket International airport offering direct flights from Japan Singapore Russia India USA & Australia with various connections from Europe. For attendees and spouses wanting to stay for the weekend 12 to 14 July 2013 further concessions are available. For all costing's kindly contact bearingcode's info@bearingcode.com and your meeting with Ian McPherson and staff is warmly welcome plus a trip to Phi Phi Island http://www.phuket.com/island/phiphi.htm

Location: Thailand Phuket
Place: Indigo Pearl Resort
Date: July 10 & 11, 2013
Attire: Appropriate/casual/summer
Site: http://www.indigo-pearl.com/
Organized: Bearingcode Team/Tourist assisted
info@bearingcode.com phone: +61 419 568453

27 May 2013

Bearing Presumption of Innocence

The Presumption of innocence is legislated in nearly all countries and should be observed. Words of Investigation, Allegation, Charged, etc. does not infer that a Guilty verdict or a conviction is recorded. Whilst 2 prior Bearing price fixing convictions in Europe & Japan and a further recent conviction in Tokyo recorded, the presumption of innocence is paramount in new cases unless otherwise determined by a Court of Law.

Quoted by Legislators: 'Innocent until proven guilty.'
That was one of the first principles of law back in the olden days - in the era long before trial by media. These days, as we all know, it is sufficient for someone to be publicly accused of a crime and for lots of other people to then stand around nodding knowingly, saying: 'Oh yes. I always thought they looked dodgy.' That's all fair, isn't it? Well, of course, it isn't.

Nor can it be fair to apply similar principles of rough justice to situations that deserve due consideration

In making legislation for acts of Law, establishing rules of Conduct or official Government documentation, requires the knowledge from Politicians + Diplomats who have studied the demographics of various subject matter. In the Bearing Industry there are 2 Politicians/Diplomats who have been elected as there government representatives 1) William Timken Jr., US Ambassador to Germany & former Chairman Board of Timken 2) Ian McPherson, Councillor Ret Australian Local Government http://en.wikipedia.org/wiki/Councillor now President of Bearingcode www.bearingcode.com - Both men have taken Oath.

And Lawyers position is yet another world, to interpret legislation as passed by government

19 May 2013

Government Warns Corporations Who Price Fix

UKPrime Minister describes Price Fixing as 'very serious' and says those who do manipulate prices will feel 'full force of law'

'It is totally unacceptable for firms to fix prices and force consumers to pay more,' said David Cameron UK Prime Minister David Cameron has warned that anyone found guilty of the "hugely concerning allegations" price fixing should face the "full force of the law". The Prime Minister responding to the ongoing 'Oil Scandal' made it it abuntantly clear that all forms of Price Fixing would not be tolerated

Speaking in New York, the prime minister said the allegations were "very, very serious" and "major consequences" would follow as he pledged to ensure that laws passed in the wake of the Libor scandal would apply to oil price fixing in the future. He was also forced to try to explain why a similar investigation barely four months ago by the Office of Fair Trading (OFT) in Britain had come up empty-handed.

Cameron said: "These are hugely concerning allegations and, if true, very, very serious. The OFT is involved in this investigation, as I understand it, but we have to get to the bottom of what happened first before we can pass judgment on the way regulators have worked in the UK. But it is hugely concerning. An investigation is under way." "It's totally unacceptable for firms to fix prices and force consumers to pay more. That's why we are looking at how to extend this criminal offence to the energy sector to make sure that those who manipulate benchmark prices feel the full force of the law."

Caroline Flint, the shadow energy secretary, described the alleged behaviour of the oil companies as shocking, while Robert Halfon, the Tory MP for Harlow, called for prison sentences for any executives found to have overseen any price fixing. He told the BBC: "Last year we urged the Office of Fair Trading to launch a full inquiry into alleged price fixing by oil companies. I had a whistleblower approach me with a dossier which we put up on our website called petrolpromise.com and sadly, nothing was done. "The Office of Fair Trading did a limp-wristed, lettuce leaf-type inquiry and they should have had a full inquiry. Now we've left it up to the EU to take action."

Full story: http://www.guardian.co.uk/business/2013/may/16/oil-price-fixing-criminal

Currently, the EU Commissioners Belgium, DOJ Washington and Singapore Consumer Competition have Price Fixing investigations against Bearing corporations SKF Schaeffler NTN NSK JTEKT NACHI. The EU Commissioners also investigating a further matter of corruption against the above corporations, the UK Office of Fair Trading investigating a similar issue against SKF & distributor Brammer, with more than 13 USA Class Actions filed in the Michigan District Court against this group. Appeals in Tokyo courts against the JFTC Japanese bearing conviction and all above cases maybe ongoing for a number of years.

13 May 2013

Bearing Powers Face New Competition

With the domination of SKF/Schaeffler/Japanese group who control more than 75% of the worlds bearing production could be challenged by a young enterprising billion dollar Chinese Bearing game changer. The high quality C&U Group HQ from China http://www.cugroup.com/en/ consisting of 30 manufacturing companies with production facilities for Bearings, Components & Electronics including warehouses in USA Germany Japan, has signaled a healthy alternative to Consumers & OEM with certified Quality Assurance & Control, no legal convictions and rising income from innovative marketing

Since 1991, C&U Group is now China's largest bearing producer and the worlds 10th largest bearing manufacturer with ratings include the business 500 China 'Top Performer'. You might say C&U is 'the new bearing Kid in Town' however its doubted if the existing bearing establishment will recognize and accept C&U status with any Association memberships.

As with most Industries, China is seen as a global leader and definitely economical resourceful sitting at Number 2 in the world behind the might of USA. Like it or not, China has the Power & Engineering right to demand respect for manufacturing quality products similar to Sweden Germany or Japan

Although traditional bearing Corporations and Manufacturing Associations may disagree, the 'Bearingcode' is non-aligned and makes constructive criticisms without fear or favour. Therefore, by creating healthy competition in either Politics, Business or Media is to be strived for, without this comes monopolies, cartels and corruption as proven by very recent Bearing illegals and ongoing

5 May 2013

Investigators Bearing Class Actions

Its now clear many Trade Commissioners around the World are investigating the Bearing Industry for Cartel activity including Price Fixing and a number of unknown alleged criminal behavior. Countries involved in bearing investigations have increased due to information exchanges and cooperation between various custom & consumer departments. Japan has yet to finalize its recent bearing convictions, however global civil 'Class Actions' will soon commence that may prosecute offenders far greater than Criminal penalties already handed down attracting sizable legal fees.

The Automotive Industry 'Price Fixing' cartels commenced a couple of years ago and investigators appear eager to stamp out corruption in all industries. The Auto Class Actions will dominate the Courts with Plaintiffs fully briefed to obtain maximum relief. Below are some new Cartel cases to be determined.

Adelaide: The Australian Competition and Consumer Commission has instituted civil proceedings in the Adelaide Registry of the Federal Court of Australia against Yazaki Corporation, a Japanese company, and its Australian subsidiary, Australian Arrow Pty Ltd 

The ACCC alleges that Yazaki and Australian Arrow engaged in cartel conduct, market sharing and price fixing. The ACCC is seeking pecuniary penalties, declarations, injunctions and costs. The ACCC's action follows similar enforcement action against Yazaki and other cartel participants by competition regulators in the US and Japan. A directions hearing was set down before Justice Besanko in the Federal Court, Adelaide and the trial commences once all documents are processed and served.

SEOUL: Four German automakers and Toyota Motor Corp. have been raided by South Korea's Fair Trade Commission on suspicion of price fixing and collusion, the importers' association says.

The swoop hit BMW, Mercedes-Benz, Audi and Volkswagen just a month after the combined market share for non-Korean automakers topped 10 percent for the first time, following recent free-trade pacts.

Investigators from Korea's FTC visited the local offices of BMW, Mercedes, VW, Audi and Toyota, the top five import brands, in February said Yoon Dae-sung, executive director of the Korea Automobile Importers and Distributors Association.
The importer association was also raided, on Feb. 26 and 27. Regulators took away digital copies of documents, Yoon said.

Authorities were investigating the foreign brands for alleged price fixing of spare parts and aftermarket parts. They are also looking into whether the importers abuse their leverage over local dealers by unfairly raising prices, Yoon said.
Regulators also may be looking into whether the head offices are limiting dealer discounts and discriminating against external financing, a spokeswoman at one automaker said.

1 May 2013

Bearing Presidents & Executives 'Due Process'

From our Bearing Hacking news article, produced more questions about 'Due Process' but no answers

Motives by Presidents & Directors of public listed Bearing Corporations in creating 'World Bearing Association' (WBA) without any official documentation, no registration no incorporation has raised serious allegations of corruption at the top. Was there 'Due Process' taken by each public corporation before aligning with a non Bona Fide organization ? Was 'WBA' a cloud identity to raise funds for more illegal activity eg. buying old stock for continuous Fake bearing advertising 'Bearing Hacking' or other contraband without involving the principal corporation ?

Having no obvious articles or books to verify 'WBA' membership, we rely only on Corporations who today have identified themselves as members, namely SKF http://en.wikipedia.org/wiki/SKF) SCHAEFFLER http://en.wikipedia.org/wiki/Schaeffler_Group and JTEKT. Previous alleged corporations can no longer be named until they volunteer, again, there's no 'WBA' Articles of Association.

Another concern comes from the so-called 'Federation of European Bearing Manufacturers Association' (FEBMA); there's no Bona Fides, no existence and no Articles of Associations available. The only reference for 'FEBMA' has been defunct since 1978, but today appears as a back-up for the same executives listing for 'WBA' and promoted by 'Stopfakebearings'

25 April 2013

NTN Appeals Cartel Decision By Japan FTC

NTN has issued a statement against the penalty for there Price Fixing part, claiming that a fairer decision should be made. NTN is the only corporation in this AMA cartel not to be issued with Tokyo District Court proceedings.

"Hearing request for cease and desist order and surcharge payment order from Japan Fair Trade Commission NTN Corporation (hereafter, NTN) received a cease and desist order and surcharge payment order from the Japan Fair Trade Commission (hereafter, the JFTC) on March 29, 2013 after the JFTC had come to conclusion that NTN had violated the Article 3 of the Japan Antimonopoly Act (prohibited unreasonable restraint of trade) related to the sale of bearings.

NTN carefully assessed and checked the content of these orders, and believes that there was no violation of the Japan Antimonopoly Act that governs each order, and that it could not accept the terms raised. Today, NTN makes a hearing request to the JFTC.

At this hearing NTN will outline its stance and request that a fair decision be made"

The original order by JFTC surcharge payment against NTN
(a) Amount of charges to be paid : 7.23107 billion yen
(b) Payment deadline : July 1, 2013

The JFTC total penalty against NTN NSK NACHI is 13,365,870,000 Billion yen Full Text(PDF : 95KB) JTEKT/Koyo as Whistleblower was exempted. However for reasons unknown, there's been no Tokyo District Court hearing against NTN so far in this Antimonopoly Act

NTN is globally offering the commodity as a precision instrument manufacturer of bearings. Production items:Bearings, Constant Velocity Joints(CVJ), Bearings Unit, Engineering Plastics Bearings, Hub Bearings, etc

20 April 2013

Latest Recommendations for 'ARTICLES of ASSOCIATION'

As a global legal requirement for Associations including Corporate 'Codes' and 'Governance' the below links are bearingcode.com guidelines for future reference.

Copy articles can be downloaded for your particular use or you may contact us for a PDF copy.






15 April 2013

Bearing Hacking Exploitation

Bearing Hacking a term to describe False Claims of Counterfeit or Fake Bearings, False or make believe Police Raids + Court proceedings and False or mischievous News articles about counterfeit bearings, have recently increased in popularity.

Bearing hackers can produce look alike situations and often propped up by highly sophisticated reporting, making it difficult to unravel and having a backup system in case of detection.

Why bearing hacking? To falsely create an impression of Corporate awareness, to provide feel-good community PR and access to free global media brand attention. The initial bearing hack reported 23 January 2007 when SKF & SCHAEFFLER purchased 44 tons of old surplus bearings and paraded them as Fakes in Schweinfurt Germany, the vitalization of 'World Bearing Association' (WBA).

Since that event, 'bearing hacking' has become more technical and harder to detect, but nevertheless, still happening without any legal evidence to produce once the cover is revealed. Recent example of exposed bearing hacking was detected when claims of a Court case in Sweden, that a person supposedly jailed for 12 months. Exposure became worse when further false allegations of legal council, unsubstantiated name of accused and place of trial; all in the name of protecting the bearing manufacturer who made the initial story and issued the original press release.

For verification of Bearing Hacking contact Mr Chad Halcom chalcom@crain.com or ian@bearingcode.com

8 April 2013

Japan Bearing Industry Positives + Negatives

Firstly, Japan represents 30% of the worlds bearing production and this latest 'Price Fixing' legal fiasco in Tokyo does not change their high quality status; written & identified in bearingcode.com front page Statement

NSK group has decided to fund Promotional Consultants PR as a counter measure to media reports for price fixing penalties, only to receive a public backlash for not funding positive prevention action. Six months ago, NSK President Mr. Norio Otsuka stated that a NSK self regulating internal team would handle compliance but declined the chance to join an external bearing Corporate Governance scheme as recommended by statutory authorities. Note: Self regulation final control is commanded by the same executives who have the power to price fix

Further, NSK President Otsuka's reaction to the JFTC Tokyo guilty conviction Full Text(PDF : 95KB) stated "the impact of the conviction on NSK's financial results is expected to be insignificant". Does this mean shareholders are to be asked to pay executive bonus entitlements from income derived from price fixing, or refund their many years of falsely manifested bonus ?

With every corporate conviction comes a public stigma of "What other areas of corruption are they doing ?" We are now looking hard to find Positives to combat the criminal behavior from some Japanese bearing executives, but want to continue trust in the high quality Nippon product.

Global internet power is now arcerting itself as the chief architect in solving long term crime, and corporate Price Fixing from Country to Country has a new meaning. The Japanese bearing fix is now known to every country Consumer group, the methodologies exposed and where records can be located

The problem exists as to how and why these Executives still try to increase their bonus with price fixing ? Global Law + Barrister firms will quickly advise that old style corporate 'Associations' provide the platform, with closed door business comparisons and a Social program with a days play on the Golf course the main offender to consumer rights

30 March 2013

Japan Fair Trading Commission Official Order to NTN NSK NACHI JTEKT/KOYO

The JFTC Issued Cease and Desist Orders and Surcharge Payment Orders against Bearing Manufacturers as per below transcript with link

The JFTC Issued Cease and Desist Orders and Surcharge Payment Orders against Bearing Manufacturers

March 29/2013

Japan Fair Trade Commission
The Japan Fair Trade Commission (JFTC) today issued cease and desist orders and surcharge payment orders based on Article 7(2) and Article 7-2(1) of the Antimonopoly Act (AMA) respectively to bearing manufacturers listed in the table below. They con-spired in sales of industrial machinery bearings and automotive bearings, which vio-lated Article 3 of the AMA.

1. The violators, companies subject to the cease and desist orders or the surcharge payment orders, and the amount of the surcharge

NameAddressRepresentativeCease and desist orderAmount of surcharge(yen)
1NTN Corporation1-3-17 Kyomachibori, Nishi-ku, Osaka-cityShigeyoshi Takagi, President7,231,070,000
2NSK Ltd.1-6-3 Ohsaki,Shinagawa­-ku, TokyoNorio Otsuka, President and CEO5,625,410,000
3NACHI-FU­JIKOSHI CORP.1-1-1 Fu­jiko­shi-Honmachi, To­yama-cityHiroo Honma, President509,390,000
4JTEKT Corporation3-5-8 Minamisemba Chuo-ku, Osaka-cityIgawa Shoji, President

(Note1) " ○ " means the company that is subject to a cease and desist order.
(Note2) " ― " means the company that is found to be a violator but not subject to a cease and desist order or a surcharge payment order.

2. Outlines of the violations
(1) NTN Corporation (NTN), NSK Ltd. (NSK), NACHI-FUJIKOSHI CORP. (Fujikoshi), and JTEKT Corporation (JTEKT) (hereinafter collectively referred as "violators") agreed
(a) To raise their selling prices of industrial machinery bearings (note 3) to the level where the increased cost for steels, raw material of bearings, can be passed on to the prices of industrial machinery bearings, by such means as asking users for raises in their selling prices of industrial machinery bearings to be deliv¬ered on and after July 1, 2010 by 8% for general bearings and by 10% for large size bearings respectively from those as of June 2010; and,
(b) To implement individual price negotiations as communicating and discussing among the violators according to each sales area and major user.
(2) The violators agreed to raise their selling prices of automotive bearings (note 4) to be delivered on and after July 1, 2010 by around 20 yen per kilogram of the steels from those as of June 2010.
(3) The violators thereby, contrary to the public interest, substantially restrained competition in the fields of sales trade of industrial machinery bearings and auto-motive bearings in Japan.
(Note3) The selling price of an "industrial machinery bearing" (excluding a miniature bearing and an extra small bearing) is determined through negotiation between a bearing manufacturer, its sales subsidiary or their sales agency (including that without an agency contract), and its user other than an automobiles and automotive parts manufacturer, etc.
(Note4) The selling price of an "automotive bearing" (excluding a miniature bearing and an extra small bearing) is determined through negotiation between a bearing manufacturer, its sales subsidiary or sales agency (including that without an agency contract), and its user such as an automobiles and automotive parts manufacturer.

3. Outlines of the cease and desist orders
(1) NTN, NSK and Fujikoshi (hereinafter collectively referred as "three companies") shall each adopt a resolution at its board of directors to confirm that:
(a) The agreements in the above 2(1) and 2(2) have discontinued;
(b) They will independently determine their selling prices of industrial machinery bearings or automotive bearings, not in concert with each other or with other companies; and,
(c) They will not exchange information about price revision on industrial machinery bearings or automotive bearings with each other or with other companies.
(2) The three companies shall each notify of the measures taken in accordance with the above 3(1), the other two companies, JTEKT, their sales subsidiaries, sales agencies and users of industrial machinery bearings or automotive bearings whose prices are determined through negotiation between the users and the three companies, their sales subsidiaries or sales agencies, and shall have such measures disseminated to their employees. The means of the notification and the dissemination shall be approved by the JFTC in advance.
(3) The three companies shall not determine their selling prices of industrial machinery bearings or automotive bearings, in concert with each other or with other companies.
(4) The three companies shall not exchange information about price revision on indus-trial machinery bearings or automotive bearings with each other or with other companies.
(5) The three companies shall take measures necessary to address the followings:
(a) Thorough announcement to their employees of guidelines on compliance with the AMA in relation to sales activities for their own products; and,
(b) Implementation of regular trainings for their employees engaged in sales of in-dustrial machinery bearings and automotive bearings, and of regular audits by le-gal department, with regard to compliance with the AMA.

4. Outline of the surcharge payment orders
The three companies shall each pay the amount of the surcharge listed in the above 1 by July 1th, 2013.
*Every announcement is tentative translation. Please refer to the original text written in Japanese.
Full Text(PDF : 95KB)

21 March 2013

Japan Newspapers Issue Warning to NTN NSK NACHI

Japan's Kyodo News has provided further information into written notices for 'Cease and desist orders and Payment orders' for surcharge from the Commission on the grounds that it had found NTN had violated of Article 3 of the Japan Antimonopoly Act (prohibited unreasonable restraint of trade). However, such notices were also intended for NSK + NACHI Bearing Corporations

"13 billion yen in fines planned for 3 bearing makers over illegal cartel"

KyodoNews press release states the condition of 'Cease and Desist Orders' is provided a 'Payment Order' accepted for the violation of Japan's legislation Article 3 to the amount of 13 Billion Yen or approx. US$140 million.

This alleged amount would not be sustainable without major changes to the 3 Cartel members, a penalty far exceeding shareholder concerns and future dividends. In fact 2 of these bearing corporations may need government protection to keep their operations in working order. With the prospect of further legal action globally and without a corporate governance independant policy, NSK NTN + NACHI have daunting issues to battle

18 March 2013

NTN Bearings Notice from Japan Fair Trade Commission

NTN Bearings has issued a Press release March 11, 2013 relating to Japans Fair Trade Commission http://www.jftc.go.jp/en/ however no official release or mention appears on JFTC's site. Court proceedings were listed to commence without mention to new notices. Below notice is from NTN

"NTN Corporation (hereafter, NTN) was the target of a search conducted by the Japan Fair Trade Commission on July 26, 2011, on the grounds of violation of the Japan Antimonopoly Act related to the sale of bearings.

NTN provided its full cooperation with this search, however, on March 8, 2013, received advanced written notices for a cease and desist order and payment order for surcharge from the Commission on the grounds that it had found that NTN had violated of Article 3 of the Japan Antimonopoly Act (prohibited unreasonable restraint of trade)

NTN has taken the receipt of these advance written notices from the Japan Fair Trade Commission seriously and with the greatest of concern, and will carefully assess and check the content of these notices and cautiously consider the most appropriate response to be taken.

NTN has been committed to complying with both the letter and the spirit of laws and regulations, however apologies to shareholders, customers and all relevant personnel for the great deal of concern caused by this matter. The impact that this will have on business performance will be disclosed as soon as further information becomes available"

Full disclosure from Tokyo District Court documents and JFTC site will be released on receipt


13 March 2013

Chinese Bearings Aggressive Re-Bound

From our news article 4 February 2013 (see below) Chinese bearing manufacturers have reconfirmed a push against foreign giants SKF, Timken, Schaeffler and Japanese bearings, to regain China's domestic market now considered the largest consumer of bearings in the world and expand its own position abroad.

China has indicated the need to overcome a number of barriers, including "technological backwardness" to produce large numbers of high-tech, high-precision and high-margin bearings, for which demands continue to grow. China's alternative policy is to embark on programs of 'Merger & Acquisition' (M+A) compulsory or otherwise; stated CBIA.

Courtesy of Russian news http://prompk.ru/ntn-snr/index_indust_rus.htm

The Chinese Bearing Industry Association with government cooperation from industrial Institutes and organizations made a number of recommendations and suggestions to improve technical production and processing equipment. The introduction of new equipment manufactured in China, the need to develop R & D and commercialization of latest innovations; a number of primary technological matters were formulated:

- Transition to multi-place machinery for forging bearing rings with a diameter of 50 to 300 mm and upwards
- Induction heating for forging, accurately control temperatures and maintain records of process parameters in real time
- Resolve a number of technical issues for quick cold rolling billets and increase range of sizes, particularly for thin-walled parts
- For machining parts with diameters 300 mm in the production lines to facilitate CNC machining centers
- Localize production of complex equipment for heat treatment, especially roller-hearth furnaces and ovens for hardening lower bainite which are currently imported
- Resolve issues of stable treatment racetracks and roller bearings with high precision machine tools
- Grinding parts to actively apply and share high-speed grinding
- High volume processing for automatic connection of accessories with type, size and product requirements
- To develop tapered roller bearing assembly lines in high demand and high added value
- Actively promote continuous assembly lines of bearings
- Promote increase use of cleaning agents including for demagnetization
- A new generation of electric spindles with high speed, toughness, power and high efficiency, high environmental performance and low-loss lubrication.

In addition; China Bearing Industry Association advises companies to work closely together in the field of innovation, invest in modernization and seek support at the level of national policy, which should lead to the early completion of the capture of the world bearing market

4 February 2013
Bearing Double Standards Heading for Rebound
Finally, SKF + Schaeffler and others have a dominating manufacturing position in China capturing up to 90% of local Chinese production, this has been achieved by strong market acceptance and expertise. Double Standards also applies in China, and any allegations of foul or fake play by foreigners can be met with corruption and price fixing. We understand China is a single party Communist country who can exercise eviction without notice, but if pushed, they now have WTO + UN power to evict those who continue with repeating corporate crime

8 March 2013

US Justice Move On Bearing Manufacturers

The NTN Bearing Group, last of the Japanese infamous bearing cartel to face Tokyo's District Court next week for its part in Price Fixing with Nachi-Fujikoshi Group and NSK while JTEKT Koyo obtained 'Whistleblower' protection, may all need to activate their USA legal defense teams if reports from senior Law firms are to believed. Other foreign bearing manufacturers SKF Sweden and SCHAEFFLER Germany could also be involved in what may be the largest investigation & legal proceedings in bearing history.

Over the past two years, more than $800 million in judgments against individuals and companies have been reached related to automotive supplier price-fixing, but for four months the U.S. Department of Justice has been fairly quiet about its ongoing investigation. Still, officials and investigated companies have dropped new hints that the government's work in Detroit isn't over -- and the investigation may be getting wider.

Earlier this month, Tokyo-based bearings and electric power steering components supplier NSK Ltd. reported in a public disclosure that its U.S. subsidiary, NSK Americas Inc. in Ann Arbor, has received a subpoena from Justice requesting information on its sales of bearings.

The company's Singapore subsidiary also underwent an unannounced inspection Feb. 6 from that country's Competition Commission. NSK, along with bearings market competitors Nachi-Fujikoshi Group and NTN Corp., were previously indicted by the Tokyo District Public Prosecutor's Office last June, following a price-fixing investigation by Japan Fair Trade Commission.

NSK Americas President Bernard Lindsay and Vice President of Finance Brian Parsons did not return phone calls seeking comment last week, but a company statement said NSK is cooperating in the investigations.

"Financial losses ... may occur in the future; it is difficult to provide a reasonable estimate on the amount of such losses at this time," it said.

In 2012, eight companies and more than a dozen individual executives entered guilty pleas and agreed to a collective $609 million in fines with Justice, making the total in judgments before U.S. District Judge George Steeh the largest amount.

But more than 20 public companies have made public disclosures that they cooperated with searches, subpoenas or raids on four continents as part of the global investigation since early 2010, and more than 30 are defendants in a related multi district civil case that combines more than 70 lawsuits brought nationwide by purchaser supplier companies, auto dealerships and individual car buyers.

Also getting U.S. attention is Behr America Inc., the Troy-based subsidiary of Behr GmbH & Co. KG, which announced in 2012 that Justice was investigating its U.S. operations, although it, like NSK, has not been charged here.

Stuttgart, Germany-based Mahle Group GmbH, which first acquired a stake in Behr in 2010 and now owns 36.8 percent of it, has said it would hold off on a past plan to grow to majority shareholder of Behr this year in light of the price-fixing investigation.

Suppliers re-ignite reviews

Local attorneys said last week that their supplier clients are reigniting internal reviews after Deputy Assistant Attorney General Scott Hammond of the Antitrust Division earlier this month seemed to be saying in a Detroit appearance that the government is taking a broader industry view.

Hammond said during an event hosted by the State Bar of Michigan Antitrust, Franchising and Trade Regulation Section that the price-fixing investigation "has grown over time and is broader than what we've announced so far."


"When the DOJ says 'We have increased our scope,' it makes for a lot of uneasy suppliers because they don't know what that entails or who will be under investigation. Hammond's comments were quite a wakeup call," said Mark Aiello, partner at Foley & Lardner LP in Detroit and co-chair of its automotive practice.

"They want everyone to think that everyone is under review, because they are pushing for self-reporting (by companies) and if everyone is a target, there's more incentive to do so."

If the government crackdown is getting larger, that may explain why in recent months it has appeared to grow slower.

Nearly all the sizable criminal judgments came in the first half of the year, and no new agreements in Detroit have come since Tokai Rika Co. Ltd. agreed to a $17.7 million fine Oct. 30 (Hiroshi Yoshida pleaded guilty in Toledo to violating the federal Sherman Act on Nov. 16, for conspiring to rig bids on anti-vibration rubber parts going back to 2005).

Analysts have told Crain's in recent months that the price-fixing prosecution has become a known commodity and investor fears in the early days of the have largely subsided by now.

Local attorneys have said the quiet is probably just a lull between an initial round of companies the government was comfortable reaching deals with in early 2012 and a second set of prosecutions or plea deals that will likely ramp up by late this year as it nears the conclusion of its case.

Case may be largest

Hammond while in Detroit also reiterated a past projection by Justice that the auto supplier case will be its largest ever when completed.

If so, the industry can expect nearly $1 billion more in fines in order to overtake the combined judgments Justice obtained from more than 20 companies in the air cargo and transportation industry between 2007 and 2010.

Brian Janis, chairman of the antitrust and trade regulation section of the State Bar and an associate general counsel at Flagstar Bancorp Inc., said the supplier price-fixing probe has already broadened so much that most state antitrust attorneys who are in private practice either have played a role in the case or work at law firms with a connection.

"There's a familiar pattern in most cases where information obtained in one investigation leads to many other new ones. Once an investigation begins it is usually a multiyear process (to complete)," Janis said.

"Interest in the automotive price-fixing antitrust arena in this state just keeps growing. And just going by Mr. Hammond's comments, we don't expect this growth of court cases in Detroit to go away any time soon."

Industry segments known to be affected so far include makers of wire harnesses, instrument panel clusters, heater control systems, occupant safety systems, anti-vibration systems -- and more recently, ball bearings.

Bids usually came in for U.S. manufacturers three years before the first model year of a proposed part's typical four- to six-year production life. The bidding company executives allegedly aligned prices on a model-by-model basis, and sometimes resorted to code words, meetings at home or remote locations to help keep the conspiracy secret, according to court records.

"This is going to spread out. The guilty pleas thus far relate to a consistent pattern of cooperation between the defendants and various competitors," said Steven Kanner, founding partner of Freed Kanner London & Millen LLC in Illinois and co-lead counsel for a proposed class of supplier purchasers in the civil lawsuit against the suspected colluder companies.

"To think for a minute they would rig bids to only a few Asian manufacturers we know about, and not to smaller purchasers that haven't been addressed yet, is contrary to rational thought."

The price-fixing scandal originated when FBI, European Commission and Japanese trade agents raided several suppliers in 2010. In the U.S., FBI agents raided Yazaki North America's offices in Canton Township, Denso's Southfield office and Tokai Rika Group North America in Plymouth Township.

Our thanks to: Chad Halcom: (313) 446-6796, chalcom@crain.com. Twitter: @chadhalcom. Dustin Walsh also contributed to this report.

25 February 2013

NSK Bearings Convicted of Corporate Crime

Japan (Kyodo) - Monday; the Tokyo District Court found major bearing maker NSK Ltd. and three former executives guilty of forming a cartel with other Japanese manufacturers in 2010 to raise prices of products for automobiles and industrial machinery.


The presiding Judge agreed with the Prosecutions demands for Conviction and JPY380 million penalty against the NSK Corporation, Conviction with suspended Jail sentences for 3 senior NSK Executives and Conviction of violation to the Antimonopoly Act of Japan

A statement issued by NSK President and CEO Mr. Norio Otsuka "We offer our most sincere apologies for the concern caused to our shareholders, customers, and other stakeholders regarding this matter" However, Mr Otsuka further states "the impact of the conviction on NSK's financial results is expected to be insignificant" - is seen as quite arrogant in terms of a Criminal offense.

This is the 3rd Cartel conviction registered against NSK Bearings, and the offer of remorse from NSK President will be challenged again from other investigations current in EU, USA, Singapore & Australia for similar offenses

20 February 2013

Counterfeiting Results in Fake Bearing Claims

Kindly be assured, Bearingcode is vigilant against all forms of bearing counterfeiting and will assist every manufacturer and distributor to eliminate fakes where possible. However, Bearingcode is equally against false reporting of spurious bearings that can take time and funding to verify.

Recently, SKF Sweden and Schaeffler Australia made serious allegations of Trade Mark and IP Copyright infringement re Counterfeit bearings capturing global media attention. The Bearingcode can now state, there was no evidence to their claims, no court proceedings and no legal convictions

Case 1. SKF headlines:

4 February 2013, SKF claims year jail to offender. However, upon extensive investigation found that no Court jurisdiction was located in Sweden and no cooperation by SKF to substantiate any misdemeanor http://www.skf.com/group/news-and-media/news-search/2013-02-04-swedish-court-rules-for-criminal-conviction.html this matter also appears with SKF Canada

Case 2. Schaeffler headlines:

20 December 2012, Schaeffler Australia ‘Destruction Day' Event.
SYDNEY, AUSTRALIA. The Schaeffler Group have taken legal action to remove 9.5 tons from the market' stated David Nevin, Managing Director Schaeffler Australia and New Zealand. However, there was no Court case and no offender, but appears a violation of a 'Confidential Agreement' by Schaeffler towards 'Grey market' bearings from their Schaeffler Hong Kong branch www.schaeffler.com.au

10 February 2013

NSK Bearings Confirms New Investigation By Singapore Authorities

NSK Ltd. Company is again investigated for Price Fixing & Corruption this time by the Singapore Government.

NSK has been previously convicted 3 times for Fraud in Japan and Corruption in Europe, facing further investigations by EU Commissioners in Belgium, DOJ Washington US, South America to decide action and Australia by the ACCC Internationalaccc@accc.com Many Class Actions against NSK are already filed in the Michigan District Court USA.

With final judgement set for another Price Fixing sentencing in Tokyo next week, NSK bearings is set to become the most fraudulent corporation in Japan now operating globally.

Norio Otsuka Representative: President and Chief Executive Officer
(First Section of the Osaka Securities Exchange TSE code 6471)
Masakazu Aijima Vice President and Executive Officer Contact: Director of Communications
(03-3779-7111 representative TEL)


On-site inspection by the Commission competition law in Singapore February 6, 2013 (local time), bearing our sales subsidiary in Singapore, (bearing) Regarding the transaction of the NSK product, as there is a suspicion of violation of competition law, competition law in Singapore site inspections by the Commission

The NSK Company and Group will entirely cooperate with the investigation by the Competition Commission law in Singapore

8 February 2013

NTN BEARING-SINGAPORE Inspection By Commissioners in Singapore

February 6 (local time) another Country on-site Inspection by representatives from the Competition Commission of Singapore visited NTN BEARING-SINGAPORE (PTE) LTD. (Singapore), consolidated subsidiaries of NTN Corporation, to gather information about possible anti-competitive behaviors among certain bearing manufacturers.

http://www.ntn.co.jp/english/news/news_files/press/news201300007.html NTN states a strict Code of Conduct which prohibits anti-competitive behaviors and is cooperating with the investigation


NTN along with NSK NACHI + KOYO/JTEKT are currently under investigation by the DOJ Washington, EU Anti Corruption in Belgium and facing sentencing this month in Tokyo District Court for Price Fixing. Also, Class Actions now filed in Michigan District Court USA against the same Japanese bearing corporations with SKF + SCHAEFFLER

7 February 2013

SKF Counterfeit Press Release to be Investigated

The SKF corporation press release Gothenburg, 4 February, 2013 stating a Swedish court has sentenced one person to a one year jail term is to be investigated for authenticity and confirmation of Trial.

This SKF counterfeit story as printed below, was issued to many Newspapers, Brokers + Institutions and repeated verbatim in newsprint many times without any verification to legal Procedure, place of Jurisdiction, names of representing Lawyers, Judgement conviction details or evidence to Trial.

The Bearingcode requested SKF Gothenburg for Court details but has refused to provide or reveal any legal material or prosecuting evidence of existence. 'Google' shows details of press release to many companies, but only to paste original SKF copy without independent or other court reporters verification thereby lacking names address and without due process to justice.

The SKF Press Release 04.02.2013 now in question:

A Swedish court has sentenced one person to a one-year jail term and a five-year ban from trade, and awarded damages to SKF, after finding him guilty of violation of Swedish trademark law in relation to the SKF trademark. The court found that he intentionally purchased counterfeit SKF products. The products were thereafter sold with a high profit margin to unknowing customers.

The criminal and civil court case was the result of a police raid in March 2010 of stores in Stockholm and Avesta (located in the central parts of Sweden) where the police found thousands of counterfeit SKF products. SKF cooperated with the police in the identification of the counterfeit bearings.

Counterfeit SKF products are non-SKF products illegally marked with the SKF trademark and packed in SKF-like packaging. Counterfeit industrial products like bearings can considerably reduce the service life of machinery and in the worst case endanger human lives. SKF is actively cooperating with law enforcement authorities around the world to facilitate legal measures against those involved in the trade of SKF counterfeit products.

Gothenburg, 4 February, 2013 SKF Publication, Sweden

4 February 2013

Bearing Double Standards Heading for Rebound

Bearing corporations (so-called WBA) dealing in cartel Fraud that effect prices to global end-users, and False claims of counterfeit bearing raids may rue the day when seeking their own Legal justice. In other words, when seeking relief from Law courts the prerequisite is to be squeaky clean yourself

Recent claims of counterfeit bearings in Holland by SKF and fake bearings with 'bon-fires' in Australia by Schaeffler claiming media attention, are treated with much skepticism drawing arguments of double standards. Who do we believe, when these Bearing Corporations have not publically written a formal apology or shown any remorse whatsoever ?

In the case of counterfeit claims by Schaeffler Australia; when requested, there was no documentation from Customs or federal Police reports, no independent verification and no legal charges against anyone - but strangely, this event was widely reported. The only allegation of any substance appear collusion between Schaeffler Hong Kong, Germany & Australia relating to Bar-Coding, government watch dog 'ACCC' now alerted to this case. The SKF Holland saga could be similar as we await legal charges filed in the Dutch courts.

The bearingcode is against all forms of Counterfeiting and will assist manufacturers to independently verify illegal spurious product, but without proper procedure and documentation, based on previous false claims by SKF + Schaeffler in Schweinfurt, Czech & UK, its another wild goose chase for free media publication.

Finally, SKF + Schaeffler and others have a dominating manufacturing position in China capturing up to 90% of local Chinese production, this has been achieved by strong market acceptance and expertise. Double Standards also applies in China, and any allegations of foul or fake play by foreigners can be met with corruption and price fixing. We understand China is a single party Communist country who can exercise eviction without notice, but if pushed, they now have WTO + UN power to evict those who continue with repeating corporate crime.

30 January 2013

Bearing Cartel Prosecution 400 Million ¥ for NSK & Executives Jail

Tokyo District Court (Japanese translation) - As signed/confirmed price cartel of bearings that are used in parts and machine tools, automobiles, the Tokyo prosecution closing arguments against 3 defendants executive officers for NSK, a leading bearing manufacturer and (Shinagawa-ku, Tokyo) were accused of unreasonable restraint of trade and antitrust 23, the Tokyo District Court presiding Judge Mr Shimado will ajudicate prosecutors arguments that NSK be penalized ¥ 400 million and 3 NSK Executives jailed 1 to 2 years imprisonment

NSK corporate executive (58) Katsumi Kuwabara, from 1 February imprisonment, two other defendants (60) recommended sentence of one year imprisonment (61) defendant 曜史 Nishiyama NSK General Manager Sales industrial machinery and Mr Keisuke Takagawa NSK Vice President & Executive from February 25 be ruled

Prosecutors had criticized NSK and stating "despite the fact that rank of the top manufacturers in the industry, had played a leading role in the cartel achieved" in the closing argument

NSK pleaded not guilty in their closing argument, the defense of the defendant Mr Takagawa said, "about what sin is satisfied, and ask for a careful judgment" although Mr Nishiyama acting for the NSK defendants admitted the charge of the company yet again.

28 January 2013

United Kingdom Signals Trade Re-Zoning Poll

Bearings may be considered the very last product for any Country to realign its trade position, but a combination of other industries could be the turning point for UK to quit the European Union by 2015.

This week UK Prime Minister David Cameron made it clear that Britain should go to the polls to vote on a 'EU no-confidence' referendum. There should be no surprises to this proposal as various signs, both inside and outside the European parliament, have simmered since UK's infamous battle with former French President Mr Nicolas Sarkozy.

And current French foreign minister Laurent Fabius said that Britain had "positive points" to offer Europe, but told French Info radio during a recent meeting with British businessmen: "If Britain wants to leave Europe, France will roll out the red carpet for you." Comments from Swedish Finance Minister Anders Borg said it would be a "big risk" for his country if the U.K. left the European Union because the Nordic nation's banks and biggest companies rely on London for their funding

The most determining factor is European's hard road to financial recovery still classified as 'critical' and the high value of the Euro currency. UK who maintain the £ pound sterling, on the other hand has a bunch of political friends in high places including former UK territory Hong Kong a hot financial part of China; Australia + New Zealand who are still UK blood colonies, India that has many English habits and the power of USA who share a favorable defence power. That footing is enough good logic for UK to take major trading steps into main land China and move away from EU.

Another example comes from the Russian bearing news agency stating the production imbalance China has within the bearing manufacturing industry, view Moscow site: industry news Kitajskaja podshipnikovaja otrasl dumaet o mirovom liderstve 24012013

Российский космос может оказаться в опасности из-за… некачественных подшипников

23 January 2013

Global Aviation May Need Review

Russian bearing news claim their space program maybe at risk due to poor quality of bearings.

Despite the massive injection to the 2012 Russian space agency and the launching of 35 satellites into orbit, financial fraud surfaced in a number of failed businesses from the satellite Express-MD2 and Telkom-3, degradation of the GLONASS satellite system and a number of other Controlling areas, some associated to poor-quality bearings.

In mid-December 2012 it was reported that the Federal Security Service in Samara closed shop due to contaminated illegal production of bearings, designed for military and industrial technology. Investigation details were not disclosed, but most likely the bearings for aerospace, given the bearing production plant in Samara focused on many manufacturing enterprises of space and aviation; stated the Press-service of Russian Federal Space Agency

Problems in the unit Briz-M booster rocket Proton-M, which brought on the wrong orbit satellites Yamal-402 where Gazprom related, most likely, with the destruction of the bearing turbo after burner. More disturbing news came from the Russian Space Agency. Kommersant http://prompk.ru/ntn-snr/index_indust_rus.htm

Российский космос может оказаться в опасности из-за… некачественных подшипников

The photo Yamal-402 booster block Breeze-M in the assembly shop

However, other world aero space programs particularly from AIRBUS + BOEING are facing embarrassing delays and performance problems with various aircraft Grounded by FAA, creating losses to customer satisfaction. Their was an old saying that: "If its not Boeing, then where not going" could now read: "If its 787 Boeing, then where not going"

Bearingcode's patron Mr Jim Mathis, Boeing's Chief Bearing engineer has not issued any bearing defect from Seattle Washington plant. It appears batteries are rumoured as the possible cause for FAA grounding of the Boeing Dreamliner.

Cracks put Airbus A380 Grounded in Singapore

Crowds watch the arrival of the new Boeing Dreamliner 787 at Manchester airport now Grounded by FAA

14 January 2013

Bearing 'Sea Change' Commences

The Bearing Industry initial Sea change (transformation) has commenced without fanfare or surprise, welcoming a new era of less corruption or at least for the time being.

From the Japanese judgement 28 December 2012, Tokyo's District Court recognized bearing fraud and the impact to social & economic conditions with the conviction of Nachi's involvement in a scandal more potent than in value. Nachi should consider itself a little unlucky to be publicly paraded first whist NSK + NTN sentencing next month could be more substantial particularly from Jail provisions, with KOYO (Jtekt) surviving via whistle-blowers privilege.

The full extent of bearing 'Sea change' will be long & enduring with many Civil class actions already filed in Michigan Court that promises further legal action by this Japanese conviction. Also, direction from investigations by Washington's Department of Justice and Belgium's EU Commissioners into SKF SCHAEFFLER + the Japanese Corporations for similar corruption; and if criminal proceedings are served, more Class actions will follow.

All above mentioned corporations are the non paid, non verified members of so-called 'World Bearing Association' (WBA). WBA is Not registered, Unincorporated, Non binding, having convicted businesses. WBA has no tax identification number, files no government security documents and completely unaccountable. WBA has no logo, no fixed address details and is not liable to enter contracts whatsoever. So much for Sea change.

2 January 2013

Nachi-Fujikoshi Guilty of Inflicting Economic + Social Impacts

From 29 December 2012 news article, Japans court verdict into the bearing cartel by NSK NTN & NACHI and members of illegal group 'World Bearing Association' - part 1: Nachi sentencing Conviction and Jail provision.

The two former officials were Keiichi Ogino, 59, a former member of the company's board of directors, who was sentenced to 14 months in prison, suspended for three years, and Michio Murai, 54, a former deputy chief of the company's bearing division, who was sentenced to 12 months, suspended for three years.

In handing down the guilty ruling, Presiding Judge Masaya Hotta said the cartel was large in scale and systematic, inflicting unfavorable economic and social impacts.

Prosecutors had sought imprisonment of 14 months for Ogino and 12 months for Murai without suspensions and a fine of 200 million yen for the company.

During the trial, the prosecutors argued that Nachi-Fujikoshi, jointly with three other bearing makers — NSK Ltd. based in Tokyo, NTN Corp. in Osaka and JTEKT Corp. in Nagoya — formed the illegal cartel to pass material price hikes on to their products.

Defense lawyers for the defendants insisted that as Nachi-Fujikoshi is smaller than the three other makers, it had to take part in the cartel to protect its business. While acknowledging there were price hikes of materials for bearings behind the formation of the cartel, Judge Hotta said prices of products should be left to fair and free competition in the market.

The judge also said the makers impeded fair competition, noting that the four makers have seized more than 70 percent of the market of bearings for industrial machinery in the country.