14 December 2014

SAE Aircraft Bearing Conference 2015

Information is now available for the next meeting of the SAE Aircraft Bearing Industry meeting

ACBG Airframe Control Bearings Group Committee
ACBG Plain Bearing Committee
ACBG Rolling Element Bearing Committee

The meeting will be held in Kitty Hawk, North Carolina, United States on April 28 - 30, 2015.

Please take the time to pre-register for this meeting as well. You may access the meeting information at: http://www.sae.org/servlets/works/committeeHome.do?comtID=TEAACBG

If you have any questions,please contact your SAE Staff Representative - The SAE Standards Works

HOTEL/MEETING LOCATION
Hilton Garden Inn Kitty Hawk 5353
North Virginia Dare Trail
Kitty Hawk, NC 27949 USA
Tel: 1-252-261-1290
Fax: 1-252=255-0513

SLEEPING ROOM RATE:

A block of sleeping rooms is reserved at the hotel for attendees of this meeting. The room rate is $149.00/Night Single/Double and includes complimentary internet.

These rooms are on a first come, first serve basis. When making your reservations, ask for the "SAE International ACBG Committee Meeting" sleeping room block in order to receive the above room rate. You will need to provide credit card information with your hotel reservation request.

Cut-off date for hotel reservations: Monday, April 6, 2015

Meeting Registration Information:

The pre-registration fee is $185 and onsite registration is $220. Please complete the registration form on the previous screen. For all questions concerning registration or to register over the phone, please contact SAE Customer Service at 1-877-606-7323 (1-724-776-4970 outside the U.S.and Canada) or email: customerservice@sae.org.

Meeting Schedule/Agendas:

The meeting schedule will be posted on the previous screen for your reference. Committee Chairs are asked to submit their agendas to Maureen Lemankiewicz for posting on this site. These agendas will help attendees to justify their travel requests.

SAE Intellectual Property Policy:

SAE's intellectual property is its most valuable asset. As such, the Society expends considerable resources maintaining and protecting its rights to its intellectual property. SAE reserves the right to copyright any of its print products, electronic products, databases, audio/visual products and any other subject matter. This is intended to protect SAE and its members from unauthorized copying and distribution of SAE intellectual property. SAE's intellectual property may only be used in a manner that furthers the organization's purposes.

It is also SAE policy that the copyrights and other intellectual property rights of third parties be respected and not infringed upon by SAE or any of its committees, or any employee, member or other person acting on behalf of SAE.

As a participant in SAE Technical Committees, individuals agree that the collective work of the committee(s) is the property of SAE, and SAE is charged with its publication,dissemination, and protection

If you have additional questions, please contact Maureen Lemankiewicz at lemankm@sae.org.

POSTSCRIPT of Kitty Hawk and the Wright Brothers

Kitty Hawk became world-famous after the Wright brothers of Dayton, Ohio, made the first controlled powered airplane flights at the Kill Devil Hills, four miles (6 km) south of the town, on December 17, 1903. After the flights, the brothers walked back to Kitty Hawk, where they sent a telegram from the Weather Bureau office to their father informing him of their success. Kitty Hawk is usually credited as the site of the powered flights because it was the nearest named settlement at the time of the flight; the modern town of Kill Devil Hills did not exist until 50 years after the flights. The Wrights chose the area because its frequent winds and soft sandy surfaces were suitable for their glider experiments, which they conducted over a three-year period prior to making the powered flights - Further info can be obtain via the links

4 December 2014

Tom Johnstone Proposed to Take Over as Husqvarna Chair After SKF

Tom Johnstone, who will leave his post as chief executive officer of the world's largest bearings maker SKF AB (SKFB) at year-end, has been appointed chairman of chainsaw and gardening-equipment maker Husqvarna AB. (HUSQB)

Johnstone, 59, who has been a member of Husqvarna's board since 2006, is also a board member of Investor AB, the holding company of Sweden's Wallenberg family and Husqvarna's largest owner.

Scottish-born Johnstone is becoming chairman as Husqvarna seeks to expand its operating margin to 10 percent next year, from 5 percent in 2013. A key task ahead is improving the profitability of its new consumer-brands division, which markets lawn mowers and chainsaws under brand names like PoulanPro, McCulloch and Flymo.

Husqvarna's new board will be elected at the company's annual general meeting in Joenkoeping, Sweden on April 21, 2015.

1 December 2014

Current & Potential Bearing Investor Knows

The fallout from various DOJ decisions effecting the Bearing Industry has been detrimental, therefore without prejudice, we began searching ways to best manage these negative results by providing real solutions

The perception that Bearingcode may become involved with some kind of Corporate external audit is wrong & misguided; however, only suggestions to implement the most prudent & tested programs.for bearing Compliance is appropriate. Below announcement by ExecSense is an additional feature to last weeks 'Negative Publicity Damage Control'. This Webinar gives the insight that your current and potential investors already have - a copy can now be obtained

'ExecSense, a service from The Financial Times, is knowledge you can depend on when the future depends on you'

"How Different Accounting Treatments Can Drastically Impact Your Results as CEO"

Upcoming Webcast: Monday, December 1st, 10:00 AM ET *Or view your copy any time after

http://www.execsense.com/how-different-accounting-treatments-can-drastically-impact-your-results-as-ceo.html?layout=alternative

Examines how you as CEO can get the view of your business that your current and potential investors already have. Take the 60 minutes to view this webcast (on your computer, smart phone, tablet device, or ExecSense iOS/Google Android App) to learn to understand a wide range of capital policies, why they relate to profit and value, and how tightening cash flow can create new funding.

This webcast is led by an expert on this topic and focuses on the latest accounting frameworks, popular bookkeeping approaches, and contemporary capital policies that can benefit your business.

In this 60-minute session, CEOs will learn:

- The most effective bookkeeping methods that will give you a new perspective on your company's financial health and growth potential

- Which accounting software the most successful CEOs are using and how to unlock their full potential

- Tips and techniques that will help you spot bookkeeping errors earlier in the accounting process to avoid detrimental consequences later

- How option and share allocations can alter your accounting presentations and what subtle factors can distort your financial statements if you don't pay close attention

- Case studies of CEOs who've implemented bookkeeping best practices and immediately gotten a deeper understanding of their companies, allowing them to make wiser investments in the long term

http://www.execsense.com/chief-executive-officers.html
25 November 2014

Japan Bearing fugitives have called DOJ's bluff
Why the U.S. doesn't extradite Japanese price fixers

By Hans Greimel - US Crain Journalist, Bearingcode.com

TOKYO -- Are the fugitive Japanese businessmen indicted for alleged price fixing calling the U.S. government's bluff?
As many as 20 executives from Japanese suppliers are on the lam in Japan, evading U.S. indictments for bid rigging. Some have left their companies. Others are still gainfully employed by the companies for which they allegedly fixed prices. But all are international fugitives in the eyes of the U.S. Department of Justice. And Last week, the Justice Department indicted two more. They are Hiroya Hirose from the ball-bearing maker NSK Ltd. and Masakazu Iwami from bearing and steering supplier JTEKT Corp. Calls to NSK earlier today found that Hirose was still employed as the section head of NSK's West JapanAutomotive Unit, despite being indicted on felony charges carry a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. Calls to JTEKT did not reach Iwami. A spokesman later said the company could not comment on personnel matters. JTEKT's "no comment" contrasts with the more open replies of several other Japanese suppliers, including Bridgestone Corp., Tokai Rika Co., Takata Corp. and Toyo Tire & Rubber Co.

Those companies forthrightly confirmed, when asked, that their own indicted employees had since "left" the company. Since Automotive News published its exclusive investigation of the legal standoff over indicted Japanese execs on Monday, I have been barraged by queries from incredulous readers asking why Justice doesn't go after these international fugitives. Especially the ones still working for the same companies. Aren't these suspects thumbing their noses at the American legal system? Doesn't the DOJ want better enforcement of what has snowballed into the biggest antitrust crackdown in U.S. history ($2.4 billion in fines, and counting)?

Extradition may be the only way to get these people. Lawyers say the fact they have been indicted indicates that negotiations for a plea deal have broken down. The suspects essentially have opted to take their chances dodging the DOJ in their homeland. To be sure, the DOJ has dangled the threat of extradition. But bringing these people back is easier said than done. While the DOJ can request extradition, it needs Japan to cooperate in delivering the suspects. Unfortunately for U.S. prosecutors, Japan's Ministry of Justice weighs the disparity of punishments when deciding whether to hand over its citizens. As we reported, individual price fixers are penalized with little more than a slap on the wrist in Japan. Lawyers here say Japanese authorities are loath to send someone to a U.S. prison for a crime that carries no time at all in Japan.

That backs the DOJ into a corner. If the DOJ gambles on extradition, it runs the risk of being stonewalled with egg on its face. The request could foment diplomatic tensions and burn political capital that might better be spent on other matters. And besides, the DOJ can rightly argue a big success in putting as many execs as it has behind bars: 26 so far and counting. In fact, simply indicting the execs is punishment in its own right, even if they continue working in Japan. The indictments essentially end their international business careers. It puts them on Interpol's top-level watch list, meaning they could easily be nabbed the moment they leave Japan's shores.

So it seems that the indicted execs hiding out in Japan -- and even more brazenly, the companies that still employ them -- have indeed essentially called the DOJ's bluff. They are rolling the dice that extradition is a hollow threat. And so far, the DOJ has done nothing to prove them wrong.

You can reach Hans Greimel at hgreimel@crain.com.

23 November 2014

Timely Advice For Bearing Industry Management

How to Recover from a PR Nightmare & Manage Negative Feedback as CEO - November 21, 2014

Bearingcode highly recommends this Webinar copy to all Industries, in particular for those seeking genuine recovery from adverse PR

ExecSense, a service from The Financial Times, is knowledge you can depend on when the future depends on you.



See Why ExecSense Webinars Have Been Attended By Thousands of Executives From:
Mayo Clinic Over 800 Public Companies Nike

Damage Control for CEOs: How to Successfully Recover from a PR Crisis

ExecSense conducted another Executive Webinar to minimize the impact on corporate negative publicity and how to provide suitable alternatives. The mistakes made without due care for acceptance and acknowledgement to the very people who need it, work to avoid the same crisis and most importantly to be authentic

A copy of this Webinar is now available by viewing the below link: http://www.execsense.com/how-to-recover-from-a-pr-mistake-and-minimize-the-impact-from-negative-publicity-as-a-ceo.html?layout=alternative examines how you as CEO can navigate difficult public relations situations, direct public narratives, and correct course when you've made the wrong move. Take the 60 minutes to view this webcast (on your computer, smart phone, tablet device, or ExecSense iOS/Google Android App) to learn why being authentic is important, when a controversy demands a response, and how to regain public trust when you've made a misstep.

The webcast is led by Steven Mason (Principle - The Brand Mason), and focuses on how to protect your company's image before, during, and after public relations crises.

In this 60-minute session, CEOs will learn:

• What types of media situations and statements might stir public controversy and risk your company's reputation

• The correct steps you should take after your company has made a public relations mistake, including a PR crisis management plan covering immediate and long-term actions for reputation repair and restoration

• When to deal with a PR controversy using your own resources and when to bring on the specialized expertise of an outside resource

• How and when to apologize for a mistake without losing trust, how to leverage social channels to communicate your message, and how to re-establish your brand as a positive voice

• Case studies of CEOs who've smoothly guided their companies through public relations gaffes and protected their brands in the process

• NEW! On-the-Go Guide : Download the quick reference guide outlining the key tips and strategies covered directly to your mobile device

Dated: November 21, 2014

17 November 2014

Korean Fair Trade Commission - More Bearing Convictions

Another 2 Convictions against the major Bearing Manufacturers known as the corrupt World Bearing Association 'stop fake bearings' have been registered by the Korean FTC making a combined total of 48 convictions in less than 2 years against this organization led by SKF & SCHAEFFLER

Statement on Decision by the Korea Fair Trade Commission

Tokyo, Japan, November 14, 2014
NSK Ltd. (NSK; Headquarters: Tokyo, Japan; President and CEO: Norio Otsuka) and NSK Korea Co., Ltd. a subsidiary of NSK (NSK Korea), have received a decision from the Korea Fair Trade Commission regarding contraventions of the Monopoly Regulation and Fair Trade Act in connection with certain past sales of bearings in Korea.

Following internal investigations into transactions in Korea, NSK and NSK Korea have fully cooperated with the Korea Fair Trade Commission's investigation. As a result, NSK and NSK Korea have been exempted from any remedial order, surcharge, or criminal report

We express our sincere regret for the concern this matter has caused our shareholders, customers, and other stakeholders. NSK and its subsidiaries regard the situation with the utmost seriousness and have taken and will continue to 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.

The decision has no impact on NSK's consolidated business forecast for the fiscal year ending March 31, 2015, because, as stated above, NSK and NSK Korea have received no surcharges or other sanctions in relation to the matter

14 November 2014

Department of Justice
Office of Public Affairs

Two Executives of Japanese Automotive Parts Manufacturers Indicted for Their Role in a Conspiracy to Fix Prices and Rig Bids

A Kentucky federal grand jury returned a one-count indictment against two executives of Japanese automotive parts manufacturers for their participation in a conspiracy to fix prices and rig bids of bearings, the Department of Justice announced today.

The indictment, filed late yesterday in the U.S. District Court for the Eastern District of Kentucky in Covington, charges Hiroya Hirose an executive at NSK Ltd., and Masakazu Iwami an executive at Jtekt Corporation, with conspiring to fix the prices of bearings sold to Toyota Motor Corporation and Toyota Motor Engineering & Manufacturing North America Inc. (collectively, "Toyota") in the United States and elsewhere, beginning at least as early as 2001 and continuing until as late as July 2011.

"The division will continue to pursue executives who violate the antitrust laws," said Assistant Attorney General Bill Baer for the Antitrust Division. "American consumers deserve the benefit of free competition between auto parts suppliers."

Hirose was a group sales manager in NSK's Mid-Japan Automotive Department Office from at least as early as January 2006 until at least 2009, and a general manager in that office from 2009 until at least 2011. Iwami was a Section Manager, then General Manager, in Jtekt's Toyota Branch office from at least as early as 1999 until at least October 2007, and then Vice Branch Manager in that office from October 2007 until at least June 2009.

The indictment alleges, among other things, that Hirose, Iwami, and co-conspirators participated in, and directed, authorized, or consented to the participation of subordinate employees in, meetings, conversations, and communications to discuss the bids and price quotations to be submitted to Toyota in the United States and elsewhere. Hirose, Iwami, and their co-conspirators submitted bids and price quotations in accordance with the agreements reached at these meetings.

NSK is a corporation organized and existing under the laws of Japan with its principal place of business in Tokyo, Japan. On Oct. 28, 2013, NSK pleaded guilty and agreed to pay a $68.2 million criminal fine for its role in the conspiracy. Jtekt is a corporation organized and existing under the laws of Japan with its registered headquarters in Osaka, Japan. On Dec. 3, 2013, Jtekt pleaded guilty and agreed to pay a $103.27 million criminal fine for its role in the conspiracy. Both NSK and Jtekt were engaged in the business of manufacturing and selling bearings to Toyota in the United States and elsewhere for installation in vehicles manufactured and sold in the United States and elsewhere.

Including Hirose and Iwami, 46 individuals have been charged in the government's ongoing investigation into market allocation, price fixing, and bid rigging in the auto parts industry. Twenty-six of these individuals have pleaded guilty and have been sentenced to serve prison terms ranging from a year and one day to two years. Additionally, 31 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of now more than $2.4 billion in fines.

Hirose and Iwami are charged with price fixing and bid rigging in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

Yesterday's indictment is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by four of the Antitrust Division's criminal enforcement sections and the FBI. Today's charge was brought by the Antitrust Division's Chicago Office and the FBI's Cincinnati Field Office. Anyone with information on price fixing, bid rigging, and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division's Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html, or call the FBI's Cincinnati Field Office at 513-421-4310.
http://www.justice.gov/opa/pr/two-executives-japanese-automotive-parts-manufacturers-indicted-their-role-conspiracy-fix

9 November 2014

Wind Turbines Change Fortunes & Bearing Failure Blame

In a mixture of good fortune and Bearing failure blame, Vestas and Siemens Wind Turbine Groups expressed vastly different trading results with the Danish Vestas Group reporting profits & brighter outlook while the German Siemens Wind Division announced a write down in the 100s million Euro blaming defective Bearings.

The Vestas Group has a strict global Code of Conduct program prohibiting suppliers with corporate crime convictions eg. SKF SCHAEFFLER NTN NSK KOYO NACHI - Vestas has reported no Bearing failures although certain questions have been raised by IBM Denmark as to the reliability of Vestas bearing procurement

Siemens Wind Turbine Division on the other hand, has placed blame on certain well known bearing manufacturers for the supply and installation of its turbine main Bearings. Siemens declined to make comment for costs of bearing replacement & related charges from Bearing manufacturers however it remains a sensitive legal matter to be resolved

https://au.news.yahoo.com/thewest/business/world/a/25461729/wind-turbine-giant-vestas-generates-big-profits-vestas-raises-guidance-further-as-market-recovers/

Copenhagen (AFP) - The world's leading wind turbine maker, Danish group Vestas Wind Systems, reported Friday it had swung into profit and now sees a brighter outlook for 2014.
Emerging from more than two years of losses under the guidance of new chief executive Anders Runevad, the firm said it is enjoying strong demand.
"The demand for renewable energy continues to be strong in both mature and emerging markets and amongst renewable energy sources, wind energy is generally regarded as the most competitive," the company said in a statement.
The group said it expects the annual operating margin before special items to be between seven and eight percent this year, compared with a six percent estimate in August, when it was raised from five percent.
Siemens to write down wind turbines - Bearings Failures
Profit at Siemens' wind power division plunged 60 percent in the first nine months of 2014 due to a low contribution from the high-margin offshore business, high production costs and charges for replacing defective bearings in onshore wind turbines.
Full story: http://www.reuters.com/article/2014/11/04/us-siemens-turbines-writedown-idUSKBN0IO0IG20141104

2 November 2014

Bearing Chronological Momentum

The 50th Year Bearing Chronological Account (BCA) has began to gain momentum with some views already submitted by fellow bearing members, SAE staff and Auto industry executives - Thank you

If you plan to submit a written BCA transcript during the period 1965 to 2015, we kindly ask to register YOUR email address with Bearingcode ian@bearingcode.com with a short comment relating to the time frame of your choice. We will make contact when your topic is ready for discovery & publication. All material submitted must be dated factual concise and itemized so we can verify via our chosen resource.

Please note, all email registrations to be receipted no later than 10 November 2014

As to the BCA editor, reference & experience has been mentioned about Bearingcode's founder Ian McPherson, we briefly confirm:
Ian first commenced Bearings in 1965 with FAG distribution and worked in many marketing & technical areas including his own bearing corporation before acquisition by SKF. He worked with other global bearing manufacturers & component part producers in ASIA USA EU and founded the Bearing Conference in London 1996 transformed to Bearingcode. He was elected into politics as Councillor for a 4 year term with Australian local government and instrumental in many Acts of legislation including Anti trust, Corruption and general Acts of government procedure, specializing in Intellectual Property, elected sister city Councillor for Lake Oswego Portland USA

Your chance to have your say considered important to the overall Bearing Chronological period. It will be treated with due respect

27 October 2014

50th Year Bearing Chronological Account

Bearingcode will release a chronological account of main events effecting the BEARING INDUSTRY from 1965 to 2015 and a forecast scenario of how current trends require further legislation, voluntary or otherwise with DOJ assistance. This time-walk will be written by the codes founder Ian McPherson and can be identified as a legal document for all future hearings. Members of Bearingcode will receive a free copy upon joining, updated when necessary with member contributions recognized, Codes membership is by donation

Since 1990 many unprecedented Bearing Industry events have occurred commencing with the legal challenge from SKF USA to eliminate the internet style trading by independent Distributors purchasing cross border stock dubbed 'Grey Market' and the first international bearing 'Price Fixing' conviction issued by the EU French Courts. The hostile takeovers of many bearing manufacturers ceasing long established brand names, the rise of both Japan & China as Bearing Powers, the conflict of Counterfeiting, Wind turbine industry perception, the impact of Auto Industry woes for Bearings, to the lack of Compliance or the understanding leaving bearing executives in bewilderment and the little time spent on public innovation creativity and general industry leadership

The Bearing Industry is no longer controlled by a handful of executives from manufacturers nor by outdated Associations that facilitate cartel operations in USA EUROPE JAPAN INDIA & CHINA; penalties by various Justice departments have ruled against such practices with more to follow in 2015. Your contributing emails are welcome: ian@bearingcode.com

20 October 2014

False Claims of Counterfeit Bearings - Will the Law Now Act

Understanding the complexity with marketing false counterfeit bearing claims by members of the so-called 'World Bearing Association' is quite simple once you ask for certified legal documentation. And if you receive any documents without a Court file number names places towns countries or even looking remotely suspicious, then you have been duped by a long standing well rehearsed bearing person who benefits from media coverage and profits by these false claims & misleading information that is obviously against the Law

Below are more false claims of counterfeit bearings marketed globally by SCHAEFFLER SKF WBA and via their dealers who act these claims against other bearing corporations and general Industry

1,750 FAKE BEARINGS DESTROYED In VARNA Bulgaria

2012-03-05

More than 1,750 fake machine bearings, bearing the logo of FAG company, were destroyed under the supervision of the officers of Customs Varna and at the presence of representative from the intellectual property department of the German concern FAG SCHAEFFLER - Dr Emil Benatov, the press office of the National Customs Agency announced.

The items were destroyed at a customs warehouse under the authority of Customs Varna.

Since 2007 until now the Customs Varna have made 6 seizures of fake German products, as the total number of the items tops 800,000 bearings at the approximate price of BGN 2.5 million. The fake items are imported from China and their introduction at the Bulgarian and European markets poses a risk for the health and safety of the citizens.


http://www.lextoria.com/bulgarian-customs-destroy-fake-machine-bearings.html


UK DISTRIBUTOR BENEFITS BY SKF SCHAEFFLER FALSE CLAIMS - 'FRANCE COURT ORDER'

Beware the threat of counterfeit bearings, warns Brammer, after latest seizure

Brammer, the UK's leading supplier of maintenance, repair and overhaul (MRO) products and services, has reminded UK manufacturing companies of the threat posed by counterfeit engineering spares and the importance of only sourcing spares through authorised distributors.

The timely advice follows a recent court order in France, which saw a distributor hit with swingeing fines after being found guilty of selling counterfeit SKF bearings.

This incident was the latest in a series of recent counterfeit bearing seizures by the authorities across Europe. Brammer is warning companies in all industry sectors to be cautious when sourcing bearings, and other engineering components, as the increasing rate of seizure indicates a growing threat from counterfeiters seeking to exploit these challenging economic times.

Jeremy Salisbury of Brammer commented: "The threat from counterfeit bearings seems to be increasing and given the problems these products can create in terms of unscheduled downtime, reduced performance, damage to machinery, invalidation of warranty and the risk to employee health and safety, it is simply not worth the risk of buying through an unauthorised source.

"All major manufacturers of bearings and other engineering spares recommend that customers source their products through their network of authorised distributors to ensure they are getting products supplied direct from the manufacturer, guaranteeing their authenticity, that they are to the latest specification and meaning they perform to the performance levels required.

"The potential impact on production uptime, equipment operational effectiveness and employee health and safety from using counterfeit products far outweighs any initial cost saving achieved through purchasing via an unauthorised source."

Brammer is an authorised distributor of bearings for leading manufacturers including SKF, NSK, Timken, Schaeffler and Cooper.
To find out more visit www.brammer.co.uk.


Says Brammer's Jeremy Salisbury: "Given the problems these [counterfeit] products can create, in terms of unscheduled downtime, reduced performance, damage to machinery and invalidation of warranty, as well as the risk to employee health and safety, it is not worth the risk of buying through an unauthorised source."

And he adds: "All major manufacturers of bearings and other engineering spares recommend that customers source their products through their network of distributors to ensure they are getting products supplied direct from the manufacturer." "following a court order in France, which saw a distributor fined for selling counterfeit SKF bearings."

SCHAEFFLER & SKF SOUTH AFRICA JOINS FALSE & MISLEADING BEARING CLAIMS

South Africa has also found by advertising Counterfeit bearings is good for business & media attention with false counterfeit claims on the western part of the Cape. This fashion is upgraded by the convicted Price Fixer 'World Bearing Association' registered Gutenberg Sweden in an effort to justify price increases & surge in profits since 2006 from false & misleading counterfeit bearing marketing

"Globally SKF is taking between 200-350 legal actions yearly against actors involved in manufacturing and selling of counterfeit bearings," a spokesperson for the company told SecuringIndustry.com.

In 2012, SKF took 330 legal actions, either as civil action or supporting law enforcement in criminal actions, she said, adding that these took place in Austria, Germany, Finland, Holland, Italy, Czech republic, Slovak, Macedonia, Hungary, Israel, UAE, Chile, Indonesia, Mexico, USA, India, South Africa,
"SecuringIndustry.com"
SKF in claiming over 300 legal actions cannot be founded: good for business
All requests by BEARINGCODE for any copies of the above were denied, nothing can be substantiated by Google, noting from DOJ.

SKF MAKES DUDIOUS JUDICIAL CLAIM IN HIGH RISK LEGAL STATEMENT 'UNSUBSTANTIATED'

In the name of World Bearing Association false counterfeit bearing claims, SKF took a bold risk by involving the Judiciary in what appears a fairytale without documentation place of Trial, Jail names places and certification

http://www.skf.com/m/news-and-media/2013-02-04-swedish-court-rules-for-criminal-conviction.html

4 Feb, 2013 Trademark infringement results in jail term

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
Aktiebolaget SKF
For further information, please contact:
MEDIA HOTLINE: 46 31 337 2400
PRESS: Rebecca Janzon, Director, Press Relations
tel: 46 31 337 3880, mobile: 46 727-173880, e-mail: rebecca.janzon@skf.com
INVESTOR RELATIONS: Marita Björk, Director, Investor Relations
tel: 46 31-337 1994, mobile: 46 705-181994, e-mail: marita.bjork@skf.com

14 October 2014

Anti-Corruption Rallies, Bearing Transparency Declines

As the Corporate Governance anti-corruption effort tallies an upsurge in Asia, the Bearing Industry makes little or no progress into anti-corruption policies official figures released in South East Asia yesterday

The number of corporations Certified for having internal polices against corruption with anti-corruption mechanisms in place soared 44% in the third quarter 2014, reflecting a more serious effort against corruption in the private sector reports from the Collective Action Code (CAC) SE Asia Times states

By comparison, the Bearing Industry recorded corruption prosecutions with 46 legal convictions in 2013/2014 and further proceedings to follow in 2015. And no effort to Certify anti-corruption policies by these offending bearing manufacturers to the codes recognized chamber of commerce mechanisms

The Secretary general Mr Bandid earlier this month said CAC's council Certified another 24 corporations who conformed with internal mechanisms to prevent corruption. Compared to the Bearing industry only 4 companies were Certified by BearingCode with many corporations stating reprisals by manufacturers who threaten to with-draw supply to any anti-corruption certification, citing persecution against a New Hampshire bearing corporation

However, continuous rise in the number of certified companies is evidence that Corporations are turning anti-corruption commitment into practice Mr Bandid stated. This momentum has encouraged more corporations to sign declarations of intent including another 27 listed.corporations which brings the CAC's signatory companies make up to 69% of the SEF's market capitalization

The encouraging feature of this anti-corruption movement is transparency as CAC will hold its annual general conference on Thursday to promote effective ways to fight corruption among both public & private company Executives. Private companies join the CAC voluntarily and to date a further 362 corporations have declared their intention to the Anti-Corruption Code

Internal codes or customer relations programs have failed the Bearing Industry for one simple reason,  lack of Transparency costing billions $ to shareholders and earning non compliance with supply to every sustainable & essential industry

2 October 2014

Freedonia Reveals False Bearing Counterfeiting & Why

The latest report containing 454 pages from the US Freedonia Group forecasts a $104.5 Billion global Bearing production by 2018. The bulk of the report deals with bearing sales and shipment trends in various parts of the world

Freedonia's analyst and research manager Mr Ken Long has made other significant findings, none more than corruption within the major Bearing Manufacturers with spin off's via their associated distributor networks

Insights into false claims of Bearing counterfeiting and the benefits that making these claims have for major suppliers. Here is part statement made on page 33 of the study report:

"Through the false or misleading reporting of counterfeiting issues, a bearing manufacturer can gain greater publicity for its brands and boost associated distributor sales, allowing the producer to charge higher prices and increase margins."

3182 - World Bearings News Release.doc

Bearingcode endorses Freedonia's research and recommends the value in purchasing this report. Copies can be ordered from the above link

Date of Report: September 30, 2014 Cost: $6,400 www.freedoniagroup.com

29 September 2014

Governments Set to Extend Legislation for Price Fixing

Justice Departments, EU Commissioners and Plaintiffs in Class Actions do not stop at guilty verdicts for Price Fixing, its a sure sign for further criminal investigations big or small with prior convictions a key for proceedings

Recent guilty verdicts for global Price Fixing by Corporations has sparked fury among politicians and government department heads seeking increases to penalties and Jail sentences. Although the Auto Industry has taken a big hit and another round to follow in 2015, Gold Oil & financial products will be used as a benchmark to become criminal offence that carry a uniform jail sentence for executives


George Osborne announced that he wanted to extend the regime introduced for Libor rigging to other benchmarks.
http://www.theguardian.com/business/2014/sep/25/price-fixing-gold-oil-financial-products-criminal-offence

In his Mansion House speech in June, the UK Chancellor, George Osborne, said he wanted to extend the regime introduced for Libor rigging to other benchmarks which were not directly regulated. After the Libor scandal erupted in 2012, the government made fixing the interest rate benchmark an offence that could lead to a seven-year jail term.

US Justice has convicted another Japanese corporation for Price Fixing highlighting the need for changes to current legislation. The Kawasaki Kisen Kaisha Ltd. (K-Line), a Japanese corporation, has agreed to plead guilty and to pay a $67.7 million criminal fine for its involvement in a conspiracy to fix prices, allocate customers, and rig bids of international ocean shipping services for roll-on, roll-off cargo, such as cars and trucks, to and from the United States and elsewhere, the US Department of Justice announced today.

According to a one-count felony charge filed today in U.S. District Court for the District of Maryland in Baltimore, K-Line conspired to suppress and eliminate competition by allocating customers and routes, rigging bids and fixing prices for the sale of international ocean shipments of roll-on, roll-off cargo to and from the United States and elsewhere, including the Port of Baltimore. K-Line participated in the conspiracy from at least as early as February 1997 until at least September 2012. K-Line has agreed to cooperate with the Department's ongoing antitrust investigation. The plea agreement is subject to court approval.

Roll-on, roll-off cargo is non-containerized cargo that can be both rolled onto and rolled off of an ocean-going vessel. Examples of this cargo include new and used cars and trucks and construction and agricultural equipment http://www.fbi.gov/baltimore/press-releases/2014/japanese-company-agrees-to-plead-guilty-to-price-fixing-on-ocean-shipping-services-for-cars-and-trucks

In another message for Legislation change: European Union regulators are ready to penalise several car parts suppliers found guilty of price fixing, Europe's antitrust chief said on Friday, continuing a crackdown in tandem with other authorities against cartels in the sector.

For the past five years, competition watchdogs from the United States, Europe and across Asia have uncovered multiple cartels, handing out record fines in some cases, and calling time on abusiness model that has served parts makers well.

Auto parts makers, in particular those from Japan, have colluded for years to inflate parts prices for automakers, dealers and repair shops in a global market with annual sales of more than 80 million vehicles and now exposed in a worldwide sweep by regulators.

European Competition Commissioner Joaquin Almunia, who has handed down more than 1 billion euros (785.83 million pounds) in fines against two car parts cartels in the last year, said he was ready to take more action.

"We have already taken two decisions against car parts producers – the wire harnesses case in July 2013 and the bearings case last March – and there are more in the pipeline," he told an International Bar Association conference.

Almunia, who will leave office at the end of October, did not name any company but said his successor, former Danish economy minister Margrethe Vestager, would have plenty on her plate.

"I will hand over to Ms Vestager a long list of other investigations in this sector," he said http://uk.reuters.com/article/2014/09/19/uk-eu-cartels-autoparts-idUKKBN0HE13L20140919

22 September 2014

SKF Faces MDL Price-Fixing & Schaeffler False Claims Continue

A Michigan federal judge rejected bearings manufacturer SKF USA Inc.'s attempt to dodge Multidistrict litigation (MDL) accusing auto parts manufacturers of bid-rigging and fixing prices, ruling the plaintiffs did not need to spell out SKF's exact role in the conspiracy.

U.S. District Judge Marianne O. Battani last month denied SKF's motion to dismiss consolidated class action complaints of indirect bearings purchasers — car dealerships and end-payors — despite SKF's claims that the suits lacked specificity. The judge dismissed SKF's Swedish parent company, AB SKF, from the MDL
https://www.law360.com/automotive/articles/571800/bearings-maker-skf-can-t-duck-auto-parts-price-fixing-mdl

Also last month, similar attempts by NTN Bearings USA to have price fixing conspiracy struck out were denied sending a powerful message from the US Federal Courts to other Bearing Manufacturers & so-called 'World Bearing Association - Stop Fake Bearings', that 14 Class Actions already filed against SKF SCHAEFFLER NTN NSK JTEK/KOYO NACHI can proceed. The World Bearing Association, TIMKEN Corporation and ABMA are mentioned in the Statement of Claims
http://www.law360.com/articles/541704/fla-ag-sues-ball-bearing-makers-over-price-fixing-scheme

Further legal proceedings are filed in the Canadian Courts against the same group claiming wide spread conspiracy over many years throughout Canada's Auto Industrial & Government Sectors, the Class Actions allege
http://www.classaction.ca/CMSFiles/PDF/PriceFixing/AutoParts/Bearings_Statement_of_Claim.pdf

Schaeffler Australia faces an uphill battle to avoid legal proceedings of rigging Counterfeit bearing statements and illegally providing to press & media reports relating to the signed 'Confidentiality Agreements' http://en.wikipedia.org/wiki/Non-disclosure_agreement Such Non-Discloser Aggreements carry a mandatory jail sentence and fine with no room for brinkmanship. Apart from the obvious release to the bearing cartel 'Stopfakebearings' site, industry journals are still available with Schaefflers MD Mr. David Nevin comments:

Quote: Demm Engineering & Manufacturing monthly journal

"Sydney-based David Nevin, MD of Schaeffler Australia and New Zealand, which distributes FAG and INA products, destroyed almost 10 tonnes of counterfeit parts it confiscated last year. He says anyone who knows of counterfeit goods should let his firm know.
"We have been involved in dealing with counterfeit products so we are aware this is going on," he says.
"I'd say that 90 per cent of counterfeit cases that we have dealt with can be traced to three importers across Australia and New Zealand. We have taken action against all of them, and that has been pretty successful for us so far. There was one big importer in Australia that we effectively shut down, it was a full-on legal battle. But that basically stopped that problem, although it was a costly exercise."
In October 2012 Nevin's firms destroyed 9.5 tonnes of counterfeit INA and FAG bearings at an invitation-only event in Sydney.
"Seizing counterfeit product is only successful if all goods are destroyed as that is the only way to protect our customers," says Nevin. "We are seeking to protect our brand so that customers receive the high quality associated with INA and FAG brands backed by the support of the Schaeffler team. Protecting our customers in this respect is and will remain one of our top priorities."
Nevin says that over the past two decades counterfeiting has grown substantially across the globe.
"As a result the World Bearing Association has launched an awareness campaign to educate customers about the potential hazards that arise from the use of counterfeit bearings."

NOTE: The World Bearing Association is a Cartel as described by EU Commissioners and global Justice Departments, an illegal monopoly to conspire corrupt collude and fraudulently conduct secret meetings to manipulate the bearing industry

14 September 2014

More Schaeffler Claims of False Counterfeit Bearings

Last weeks Schaeffler's counterfeit corruption news attracted many viewers worldwide but none more than Schaefflers alleged corruption from down-under

Having been on a roll with staged global counterfeit claims, Schaeffler Australia's CEO & management sought to end foreign imports, and other stock sourced via BearingNet UK with the allegation of staging/rigging a corrupt counterfeit claim worth $300,000 involving 9 tons of FAG & INA new bearings in 2011/2012

An independent trader in Perth was Schaeffler Australia's target which set about destroying this business by manipulating brand new bearings imported by the trader, claiming as counterfeit with the threat and gross intimidation of legal proceedings if these new bearings were not handed over to Schaeffler Australia

The difficult decision was made under duress as the Trader's owners had prostate cancer and his wife breast cancer, reluctantly handed over the newly imported $300K FAG & INA brand bearings and was aggressively made to sign a confidentiality agreement by Schaeffler. Obviously, both parties were not prepared to face legal proceedings due to traders health and to Schaeffler Australia's embarrassment

That's part of these rigged allegations, next came the leaking of the signed confidentiality agreements with photos to global media announcing that another counterfeit corruption found in Australia by Schaeffler and an automatic news splash to the World Bearing Association's site 'Stop Fake Bearings'. The damage caused to the Trader was catastrophic with the loss of business throughout Australia, Schaeffler gained these new bearings worth $300K and prided themselves in eliminating an import competitor .

Bearingcode can verify from documents & packing slips that these imported FAG & INA bearings were originated from Schaeffler HQ Hong-Kong and shipped by Schaefflers HK dealer to the Australian trader in Perth; who are still rehabilitating their health and business. Photos were released by Schaeffler Australia to gain maximum media coverage were later withdrawn under legal advice however, the damage had already been achieved. Further documents of this fiasco are now openly available in violation of the signed agreement by Schaeffler, only to face further investigations


5 September 2014

Another Claim of Counterfeiting By Schaeffler

Many claims of Counterfeit bearings by bearing manufacturers to secure maximum media attention have proven false rigged or staged. Schaeffler & SKF first staged 40 tons in Germany January 2007 then 30 tons in Czech then another 26 tons again in Germany last year, and many other rigged claims throughout the world over 7 years

This latest Schaeffler counterfeit claim if taken at face value, is a serious criminal allegation and due legal process must be applied. However Schaeffler has not made an allegation, they have virtually pronounced a company Guilty without providing the necessary evidence to be scrutinised by attorneys in a court of law


Schaefflers photo of the destruction of a falsely claimed counterfeit product for media attention Jan 2007

With allegations of further corruption by World Bearing Association members and having received 46 convictions globally, $2.3 Billion in penalties including jail sentences in 2013/2014, Schaeffler's claims of product piracy can be shown to be false
http://www.fag.com/content.fag.de/en/company/history/from_2006_to_2010/from_2006_to_2010.jsp

QUOTE: Schaeffler successfully takes action against product piracy in the US

"Together with other bearing manufacturers and in close cooperation with US authorities, Schaeffler Group has achieved a significant win in the fight against worldwide product piracy in rolling bearings. On July 16 and 29, 2014, counterfeit rolling bearings valued at over 500,000 USD were seized at supplier Tex Star Bearings in Houston, Texas in the USA. The raids were conducted by Immigration and Customs Enforcement / Homeland Security Investigations. Specialists found the bulk of products in stock at the supplier to be counterfeit and removed them. The monetary share of counterfeit products featuring the Schaeffler brand FAG amounted to 185,000 USD. Investigations in this case are ongoing, however the risk of damage to property and personal injury, which is always present when using counterfeit products, was limited just in time by the seizure of the products. For Tex Star Bearings, the cleared stock shelves alone translate into losses in the six-digit range. In addition, the supplier faces substantial compensation claims for damage and penalties.

The investigations in detail
Tex Star Bearings had been repeatedly suspected of trading in counterfeit products. This suspicion was recently confirmed after merchandise was seized by Customs authorities. Back then, counterfeits branded as FAG products and valued at several hundred thousand US dollars were already secured. The subsequent raids of the supplier's warehouses were further important steps to protect downstream distributors and end clients from these counterfeits. Depending on the application, installing these bearings can have catastrophic consequences and even risk the loss of life. For example when these low-quality products are fitted in cars, ships or even aircraft. To further limit such risks, the sales histories will be traced back in the course of the investigation, so that the counterfeit products can be recalled and replaced. All costs will be borne by the supplier responsible for distributing the counterfeits.

Schaeffler against product piracy
To protect buyers and end clients procuring INA and FAG products from distributors, Schaeffler has assessed and certified sales partners worldwide. This ensures that only original products are traded through these sales channels. Schaeffler is also engaged globally in the fight against product piracy. Targeted and effective measures are centrally organized by the Brand Protection Team and implemented with local support. Working together in the World Bearing Association (WBA), major bearing manufacturers take action against counterfeiters, with great global success. When sourcing rolling bearings, always check on the trustworthiness of suppliers to offer only demonstrably genuine merchandise, as just one bearing can lead to substantial financial damages and even risk to life and limb. (Schaeffler Group USA Inc.) "

1 September 2014

NTN USA Price-Fixing Allegations Not Dismissed By US Courts

The Eastern District of Michigan denied a motion by a Japanese manufacturer and its U.S.-based subsidiary (NTN Corporation and NTN USA Corporation) to dismiss the direct and indirect purchaser complaints in In re Bearings, 2:12-cv-00500-MOB-MKM (E.D. Mich. Aug. 26, 2014), one of the cases in the In re Automotive Parts Antitrust Litigation MDL, No. 12-md-02311. Following an investigation by the Japan Fair Trade Commission in 2013, NTN admitted to participating in a conspiracy to fix prices for bearings, which the complaints describe as "friction-reducing devices that allow one moving part to glide past another moving part."

According to NTN, the plaintiffs were trying to use NTN's participation in a price-fixing conspiracy in Japan to "link NTN to a different conspiracy in the United States" simply because NTN had "knowledge that some of its bearings sold in foreign markets would enter the United States market." This "theory of global United States antitrust jurisdiction," NTN contended, is prohibited by the Foreign Trade Antitrust Improvements Act (FTAIA).

The court was unpersuaded. The plaintiffs' allegations depicting foreign investigations were not merely attempts to recover for conduct that occurred in other countries; rather, the existence of foreign investigations and guilty pleas was what "render[ed] Plaintiffs' claims of a conspiracy directed at the United States plausible." According to the court, the FTAIA arguments did not apply to NTN USA, which was alleged to have manufactured and sold bearings in the United States. And "[w]ith respect to NTN, Plaintiffs allege[d] that NTN USA manufactured and sold price-fixed bearings directly into the United States market at the direction of NTN." The court concluded that "[t]he conduct at issue in this case is not the type of conduct Congress sought to exclude from the Sherman Act's reach." by McDermott Will & Emery Chelsea Black

1 September 2014

So Where From Here ?

From last weeks article 'Changes Required to Bearing Industry' many views were received from Auto Industrial Trade Banks Law Firms Institutions and Government bodies all presumably seeking answers resolutions and stability for the Bearing world against continuing corruption. However, the silence from within bearing manufacturers is just as chilling as the recent guilty findings

The next legal round facing the Bearing Industry may be more severe than Price Fixing with allegations of wide spread corruption within Association groups, Market Deception, Counterfeit Rigging and False Judicial proceedings, then the prospect of Consumer relief compensation from various Class Actions filed and legal hearings for those effected within the Auto Industry

The Bearing Industry is in legal free-fall and in desperate need of direction, but from whom ?

Bearingcode has an International platform to report factual information worldwide but without the cooperation from the resulting 6 major bearing manufacturers, the industry remains in limbo. A compromise to share this platform could be possible if dialogue was established, giving a united cooperative direction to Shareholders Banks and Industry alike, but to be seen as doing nothing is damaging indecisive and non productive. The alternative of 'self reporting' having legal convictions is obviously never reassuring

24 August 2014

Changes Required to Bearing Industry

China's latest round of corruption clamp down provides little comfort to foreign corporations who gambled with anti-trust consumer Law. And for those corporate executives who took risks to defraud China with Price Fixing were completely off planet Earth

The fallout from 12 convictions against the Japanese auto parts & bearing manufacturers has ignited a fuse for China's consumer of No-Trust and the possibility of total deportation, factory and all, if China legitimately and conveniently wants. Scoff if you will but the communist system is quite clear; the Government is not subservient to its constituents.
http://www.chinadaily.com.cn/business/motoring/2014_anti_monopoly_news.html

NSK NTN and JTEKT were among four bearing companies fined US$60 million by the Chinese regulator, bringing the total global 2013/14 penalties to US$2,330,000,000 (US$2.33Billion) against 6 bearing manufacturers NSK NTN JTEKT NACHI SKF SCHAEFFLER in 9 Countries for corruption

http://news.xinhuanet.com/english/china/2014-08/20/c_133569921.htm

And last couple of days, the Canadian government regulator flexed its muscles again to penalise the auto industry and bearing companies with Anti-Trust convictions. Its overtime for an industry Change

https://sg.finance.yahoo.com/news/sixth-guilty-plea-competition-bureaus-184700306.html

The President of SKF Tom Johnstone resignation this week opens new doors for further changes to our Industry with many good comments, others of varying opinions however, transition is welcomed while genuine retirement time is necessary. Tom has significant track form in bearings and no doubt will be noticed in another role directing the 'Knowledge' traffic

For example, Bearingcode will soon introduce a certified Six sigma Green belt course to the bearing industry and this experience with Six sigma may compliment existing programs with the University of Maryland USA http://www.calce.umd.edu/general/faculty/bios/das.html

Note: Six sigma Green belt is a credential that prepares individuals to take on complex process improvement assignments. A large number of organizations have started to ask their employees or job applicants to have some background in process improvement. Bearingcode's proposed certification course prepares a practitioner of six sigma methodology with a 2 days workshop and certificate program.

19 August 2014

BOEING Bearing SAE Conference

The next meeting of the SAE ACBG Airframe Control Bearings Group will be held on September 23-25, 2014 at the prestigious BOEING USA Factory:

BOEING Renton Plant,
North 8th Street & Logan Avenue North
Renton, Washington USA

REQUIRED REGISTRATION INFORMATION FOR MEMBERS & NON MEMBERS

As this meeting is being hosted by BOEING there is No registration fee. However, you are required to provide Mr. Jimmy Mathis Jimmie.L.Mathis@Boeing.Com with the information listed below in order to gain access to the meeting location

Updated information is now available for the next meeting/s of the
- ACBG Plain Bearing Committee
- ACBG Airframe Control Bearings Group Committee
- ACBG Rolling Element Bearing Committee
Program details: http://www.sae.org/servlets/works/committeeHome.do?comtID=TEAACBGPB
If you have additional questions, please contact Maureen Lemankiewicz lemankm@sae.org
Non-members are invited, SAE conditions observed

Registration includes a Tour:
Boeing Renton Plant
North 8th Street and Logan Ave North (3 miles from the hotel)
http://airchive.com/galleries/renton-boeing-737-line-2-copa-737-2-2_27559.jpg The BOEING 737 Factory Tour Wednesday afternoon
Tour shoe requirements:

Sturdy material that resists cuts and punctures
Closed toes and closed heels
Heels: shorter than 2" high, base larger than 1" square
Soles: slip-resistant soles (like neoprene), thick to resist punctures

12 August 2014

China Allege Anti-Trust Against NTN + NSK Bearings

The China National Development & Reform Commission has been investigating alleged corruption between NTN & NSK Bearings on the China domestic market and the affects to both foreign car producers and auto parts manufacturers, includes the operations of 12 other Japanese corporations

Chinese authorities took aim against foreign companies in a large scale anti-trust investigation into the Auto Industry over the past 3 years. China officials have not fully disclosed details citing confidentiality, but released a preliminary finding of breaches against Japanese manufacturers

According to insider information obtained by press correspondents from the Chinese media, it is a question of alleged overpricing by NSK and NTN bearings, both corporations have production facilities in the provinces of Liaoning and Anhui

While initial investigations were launched back in 2011, recent US events have accelerated the need for immediate action caused by global corruption against Japanese auto parts and NSK & NTN Bearings, and further anti-trust convictions could be concern in China

Analysts believe that the Chinese government is eager to "kill" two birds:

- Firstly, to restrain the growth of sales of foreign cars and accelerate the process of less imports before Chinese automakers comply with the 2015 requirement of 40% share in the local market

- Secondly, to get foreign companies to comply with the anti-monopoly law enacted in 2008, with any conviction a springboard to lawfully restrain increases in production

press release joint: http://prompk.ru/ntn-snr/index_indust_rus.htm

11 August 2014

Bearing Counterfeit Corruption & Cartel

The agenda for any Cartel rely on highly secretive business dealings only privileged to the most senior board executive, making middle management vulnerable or 'lame-ducks' when justifying policy

19 March 2014, Mr. Joaquin Almunia the EU's antitrust chief stated in response to the Bearing Cartel "These Bearing manufacturers secretly operated one of the largest cartel the EU had experienced, extending for over 7 years from April 2004 until July 2011" What has since been revealed from this flourishing Price Fixing are more complex corrupt matters. Mr Almunia has made clear that during these highly secret bearing meetings/link-ups, obviously topics of other money laundering schemes could include false Counterfeit claims and Market fixing operations for executive commission ventures

Similar remarks were made by US Attorney General Eric Holder who stated ""The Department of Justice will continue to crack down on cartel behavior that causes American consumers and businesses to pay higher prices for the products and services they rely upon in their everyday lives." http://www.justice.gov/opa/pr/2013/September/13-at-1074.html

Bearing manufacturers have made no noticeable changes to these complex corrupt issues and remain without a clear strategy to eliminate the recent past, only providing fuel for further speculation

Counterfeiting doesn't mass produce with a ETCHER or without a facility to produce high grade Packaging or most of all, a modern equipped factory with the state of the Art Technology. And if counterfeit is found then a factory complete with a Country of Origin comes with it - that's DNA evidence. So far we appear to lack every step of any investigation to fake claims

Who's responsible for any low or highly sophisticated production steps in Counterfeit bearings ?

1 August 2014

NTN Bearings Anti-Trust & Market Fixing Corruption

Japan's NTN Group USA has issued a press release making claims of illegal low quality counterfeit bearing seizure in a joint raid with NCIS http://www.ntnamericas.com/en/media-and-resources/157-2014-07-29-ncis-ntn-conduct-counterfeiting-raid-in-charlston-sc-ncis-ntn-conduct-counterfeiting-raid-in-charlston-sc-press-release

It is not clear what participation NCIS conducted or reports, if any were released for scrutiny, although it appears the quick assumption by NTN of counterfeit bearing analysis is yet another example needed for reform when alleging fake product

This NTN raid has a familiar tone with the first false counterfeit bearing fiasco in Schweinfurt Germany 23 January 2007, then enduring many more including false Court proceedings in Sweden, false or 'make believe' counterfeit raids in 20 countries without producing a shred of evidence. This "Market Fixing" corruption mastermind controlled by 'WORLD BEARING ASSOCIATION" executive members created a site for joint exposure "STOP FAKE BEARINGS" these members being the same executives who controlled the recent "Price Fixing" global scandal, NTN being a leading convicted player

As reported in various world News + Media articles, these WBA bearing members amassed 42 illegal Convictions in 8 Countries, 5 Jail sentences, US$2.2 Billion penalties for Anti Trust corruption all within 2013/2014

Further, the NTN Bearing Group had prior convictions for Corruption in France 2002 and Tokyo Japan pre 2000, now recognised as the largest penalised bearing business of any JAPANESE with over US$400 million in fines

This reprehensible anti trust behaviour by NTN and fellow members of World Bearing Association/Stop Fake Bearings should voluntary close the cartel, price corruption & market fixing or face the real prospect of a government NCA global intervention

27 July 2014

Investigation Methodology into Counterfeit Bearings

Allegations of Counterfeit product must follow a Methodology to properly determine whether fake does Exist.

This process does not include quick finger pointing, pricing analysis, on-line purchasing, entrepreneurial legal practice or as many refer Grey marketing from contacts gathered via eg. Bearingnet

We know the risks of purchasing product 'On-line' are sometimes tricky or disillusioned from other continents, and the process involved in obtaining a credit if the goods are not as specified. Then the risk gets greater when packaging, ID markings, bar-codes, country of origin have been contaminated

Bearingcode has been requested to determine a number of Counterfeit claims and a sequence of Due Process is developed, the following methodology can be observed:
- copies of documents relating to initial order
- supplier confirmation
- shippers BoL,
- customers details & reasons for claiming Fake
- sample bearings in their suppliers packages, grease, wrapping & transparent ID
- packing slips, photos of premises
- DNA and forensics on every article
- evaluation of evidence by independent bearing personal
- Transparency of information to case parties
- Destruction of evidence prohibited for 3 years or as determined by the Courts

The costs involved are considerable and awarded to the accused or accuser appropriate to blame. Then legal action may follow either civil or criminal with any settlement involving independent witnesses

Bearing bar codes are not suitable evidence and could also be manipulated in the manifest

CALCE at the University of Maryland USA http://www.calce.umd.edu has produced some startling information into Counterfeiting and while Bearing Manufacturers and Distributors may scoff at certain findings, a deeper appreciation maybe required to allow new progress in the Bearing Industry to happen

Dr. Das diganta@umd.edu recently covered specific areas in a presentation and question/answer session with the attendees:

  • Nature of counterfeit parts and how they are counterfeited
  • Counterfeiting beyond specified products
  • Standards relating to counterfeit products - will they reduce the counterfeiting risks ?
  • Whether you can detect counterfeit risks without inspecting the parts?
  • Is there an uptick in the prosecution and investigation of counterfeiters?
  • How ignoring the distributor assessment process is affecting the supply chain
  • Whether the reporting of counterfeit part incidents is helpful or harmful
  • Will part authentication tools like DNA make a difference?

Dr. Das (diganta@umd.edu) can be contacted anytime with questions on this content or to Bearingcode Ian McPherson ian@bearingcode.com

18 July 2014

Allegations of Fake Bearings in US Houston Raid

From our news 7th July "Beware of New Bearing Deals" it appears business and authorities have become more vigilant in counterfeit detection with US Federal Agents raiding a Houston bearing warehouse last Wednesday for alleged counterfeit bearing shipment from Hong Kong

The bearings, according to one official, range in size from a basketball to small ones. These bearings were found in containers with the names of manufacturers in China, news media reports allege

ABC News gave prime time to this raid interviewing various Agents and highlighting the importance of bearings in all machinery. No charges or arrests were reported and no verification of counterfeit has been determined, however allegations from federal agents are now making international headlines, view:

http://abc13.com/news/federal-agents-raid-bearings-warehouse-in-sw-houston/192795/

A prominent USA bearing distributor stated: "I have no way of knowing what is or isn't counterfeit in the video link. One of my suppliers sent the video and we seem to hear more and more about this issue. Someday hopefully verification will arrive as to whether the problem is real or imagined?

Although a serious allegation of Counterfeit, the authenticity must be properly determined by SW Houston authorities and verified to bearingcode & others

13 July 2014

Mining & Engineering Bearing Expo 2014

The Global Mining & Engineering Expo including Bearing Manufacturers will be held in Queensland Australia 22-24 July 2014 Queensland Mining & Engineering Exhibition (QME)

Corporations involved in the Mining Industry will be on show in what's described as the worlds largest ever assembled, at the top end of Australia down-under. There are 18 Bearing Manufacturers includes:
SKF SCHAEFFLER TIMKEN NSK NTN JTEKT NACHI + CHINA BEARING INSTITUTE + SLEW Producers

Details of these exhibitors and full program can be found www.queenslandminingexpo.com.au

While this July's Expo will be the grandest, there will be other Mining & Engineering Expos during 2014
If you are interested to attend this & other Expos in need of travel information to Mackay Queensland, the Bearingcode can provide all necessary flights, car rental & accommodation advice info@bearingcode.com

Event Support

6 July 2014

Beware of New Bearing Deals

Warnings are issued against attractive bearing offers from Asia particularly Shanghai and Hong Kong after bearing dealers in Europe and Australia seek legal proceedings for compensation

A French Consultancy group recently purchased new bearings from a bearing dealer in Shanghai who advertises SKF/Schaeffler authorised dealer, but when the shipment landed in EU worth $130,000 allegations were made as Fakes. The recourse of this shipment is now under current EU investigation and as the money was paid in advance to Shanghai, a settlement of any description could take years leaving the Buyer somewhat vulnerable for reimbursement, if at all

Western Australian bearing importer claims it has been falsely accused of trading in Fakes when a shipment of FAG & INA bearings from HK were challenged for authenticity. The import value worth $150,000 has been seized and due to confidentiality agreements this matter maybe locked in for years until the Australian Consumer & Competition Corp decides what action is required. The sale stemmed from a authorised Hong Kong distributor with the BoL to Perth Australia and cooperation between Buyer and Seller is unacceptable

Bearingcode has investigated bearing dealers in Asia and can confirm the disturbing amount of new companies commenced around March 2014 with the SKF name clearly visible on the dealers site and in email addresses. Below are examples of Buyer Beware, as any enterprise who Passing-Off a global identity is normally highly dubious if not highly illegal in the eyes of an OECD Court of Law http://en.wikipedia.org/wiki/Passing_off

Example 1

I'm from Bearing manufacturing factory in China "zhyl-skf" zhyl-skf@tpbearing.com

We also specializes in world known brands FAG, NSK, INA,TIMKEN, NTN, NACHI, KOYO, IKO and famous brand linear guide. We will be happy to give you a quotation upon receipt of your detailed requirements JIADING DISTRICT SHANGHAI www.tpbearing.com

Example 2

This is Shanghai YuLin Bearing Co.,Ltd in China "bearingd" www.yp-skf.com are in the bearing market.

We export all bearing types SKF, FAG, NSK, NTN, TIMKEN ,NACHI, INA, KOYO bearingd@yp-skf.com

30 June 2014

Korean Corruption Impose Fine US$98 Million on NSK NTN JTETK NACHI SCHAEFFLER MINEBEA

South Korea's Fair Trade Commission (FTC) found that Japanese and German Bearing Manufacturers had colluded to sell at least one trillion won ($982.2 million) worth of components at higher prices to South Korean companies.

The FTC investigation concluded that such price-rigging had continued for over a decade and intends to impose 100 billion won (US$98 million) total fines and convict six bearing manufacturers from Japan and German involved for corruption

The FTC uncovered evidence that Japanese corporations NSK, JTEKT/KOYO, NTN, MINEBEA NACHI-FUJIKOSHI and Germany's SCHAEFFLER Group colluded to supply bearings at higher prices than competitive price level to major domestic companies such as HYUNDAI MOTOR, SAMSUNG ELECTRIC and POSCO said industry sources last Wednesday. Japanese and German bearing manufacturers upped product prices by tapping their dominance in the global market and took advantage of raw material price and currency rate fluctuations

The below brands sold more than one trillion won in Korean domestic bearing sales via price-fixing over the last 10 years Korea's FTC estimate. The one trillion won is based on FTC's evidence of collusion collected so actual damages could snowball further. The FTC plans to impose 100 billion won fine on the companies, about 10 percent of their related sales.
http://www.supplierbusiness.com/news/26591/south-koreas-ftc-likely-to-impose-usd98-million-fine-on-japanese-german-bearing-makers-for-price-fixingreport#sthash.9bjshuzj.dpuf


This Korean FTC decision will be the 42nd corrupt conviction in 2013/14 by 7 Bearing Manufacturers SKF SCHAEFFLER NTN NSK JTEKT NACHI MINEBEA with combined fines of US$ 2.2 Billion aprox. 5 Jail sentences registered, from Justice Departments in countries:
EU   USA   CANADA   JAPAN   AUSTRALIA   SINGAPORE   BRAZIL   KOREA   

25 June 2014

Bearing Manufacturers Involvement With Antitrust

While prospects of further legal action against bearings SKF SCHAEFFLER NSK NTN KOYO NACHI for corruption as indicated by senior law firm Allen & Overy www.allenovery.com another shadow hangs in the balance arising from allegations under current EC investigation. These allegations appear behavioural both corporate & executive that cross reference to early 2000.

http://www.ft.com/intl/cms/s/0/ef603cfe-fbc0-11e3-9a03-00144feab7de.html#axzz35f2Jppbl
Reports Caroline Binham, Legal Correspondent :

Antitrust watchdogs around the world are on track to break last year's record amount of cartel penalties in 2014. European and US regulators alone issued fines of $2.7bn for alleged price-fixing over the past six months.

Japanese companies felt the brunt of competition enforcement by the US Department of Justice and contributed to one of the European Commission's biggest investigations, as total fines at the half-year point suggested that 2013's record level of more than €3bn could be surpassed by December, new research shows

Seven out of eight of the fines levied by the DoJ so far this year have been on Japanese companies, with Tokyo-headquartered tyremaker Bridgestone Corp's guilty plea and $425m penalty for bid-rigging being the highest of 2014 so far in the US, where antitrust authorities meted out a total of $709m between January and June.

Meanwhile, European regulators have surpassed their American rivals to hand out $1.95bn (€1.41bn) of fines over the past six months. The bulk of this was €953m imposed on six companies for their alleged participation in a ballbearings cartel, over which Japan-headquartered Jtekt received full immunity from authorities in exchange for blowing the whistle.

Sweden's SKF, the world's largest ball bearing manufacturer, and Germany's Schaeffler were among five companies hit by the combined €953.3m fine, as the commission warned of more penalties to come.

Authorities from other regimes, such as China and Russia, have also sought to play a more significant role over the past year in enforcing antitrust laws, according to Allen & Overy, the law firm that compiled the research.

China's National Development and Reform Commission fined companies $36.3m over the past six months and also launched probes into alleged price-fixing in the capacitator and autoparts industries. Russian antitrust authorities have also been increasingly assertive, raiding pharmaceutical companies and for the first time applying Russian law beyond its borders in a case that involved two Russian mobile-services companies allegedly conspiring to boycott a competitor, according to A&O.

"Global cartel enforcement has not lost a step so far in 2014, with cartel fines on track to soar to record levels and more regimes having joined the growing band of cartel enforcers willing to reach beyond their borders to prosecute corporations and executives for international conduct," said John Terzaken, a former DoJ official and now an antitrust partner at A&O.


Allen & Overy Corporation
LAWYERS

Allen & Overy is a multinational law firm headquartered in London. A member of the UK's Magic Circle of leading law firms, Allen & Overy is widely considered to be one of the world's elite law firms
Headquarters: London, United Kingdom

22 June 2014

Brazil Industry + Bearing Growth Continues

Brazil's automotive industrial & sustainable energy demand appears full steam ahead despite hiccups in April 2014 growth according to Instituto Brasileiro http://www.ibge.gov.br/english/ with increases for the bearing industry both OE + Aftermarket

Mahindra & Mahindra (M&M), India's largest utility vehicle maker http://www.mahindra.com/ is considering building a manufacturing plant in Brazil to get around tariff barriers recently introduced by the South American country, Pawan Goenka, executive director and president (automotive business) stated:

Announced in late 2012 and effective till 2017, Brazil's Inovar-Auto incentive programme offers tax sops for automakers sourcing parts indigenously and promoting local product development. It has made imports from countries like India uncompetitive. Among domestic firms, M&M has the largest presence in Brazil — it sells two products in Brazil, the Scorpio SUV and pick-up, both of which are assembled by its local partner Bramont http://www.bramont.com.br/ at a plant in Manaus.

"Brazil has put in some kind of a taxation on companies not doing enough local R&D and value addition. In some sense, it is a tax barrier and makes our products uncompetitive. Those who have manufacturing plants with a fair level of vertical integration are okay, but those who do not have a plant in Brazil or have a very small level of localisation are affected," Goenka said

Acciona adds 153MW to Brazil wind portfolio

Spanish wind turbine manufacturer Acciona has struck a 153MW supply deal for the Santa Vitória do Palmar wind complex in Brazil's southern state of Rio Grande do Sul.

The contract with developer Atlantic Energias Renováveis is for the supply and assembly of 51 turbines, Acciona said in a release. Madrid-based Acciona also signed an agreement to operate and maintain the units which will be mounted on 120m-tall concrete towers for some15 years.

Christiano Forman, director of Acciona unit Acciona Windpower, said the company's AW 125/3000 turbine, with a capacity of 3MW, was also being sought for other projects. "We have a very competitive machine, with options that make it ideal for a large number of sites," Forman said.

Acciona already has six supply contracts in Brazil totaling 666MW. On Monday the company signed a 90MW contract with Rio Energy for the Itarema wind complex in Brazil's northeastern state of Ceará.

Brazil Industrial Production

Industrial Production in Brazil decreased 5.80 percent in April of 2014 over the same month in the previous year. Industrial Production in Brazil averaged 2.47 Percent from 1992 until 2014, reaching an all time high of 20.12 Percent in March of 2010 and a record low of -17.47 Percent in January of 2009.

Industrial Production in Brazil is reported by the Instituto Brasileiro de Geografia e Estatística (IBGE)

Brazil with European Trade

Brazil disappointed with Argentina's 'lack of ambition' in reaching trade accord with EU

Argentina and Brazil have again clashed not over football but over trade and Mercosur according to the Sao Paulo media. Brazil believes there is "a lack of ambition from Argentina" to finish polishing the proposal to be exchanged with the European Union for a much delayed cooperation and trade agreement
http://en.mercopress.com/2014/06/21/brazil-disappointed-with-argentina-s-lack-of-ambition-in-reaching-trade-accord-with-eu

The administration of Cristina Fernandez wants a seven year grace before reducing some tariffs. Allegedly Brazil given the situation has a B plan, with the support from junior members Paraguay and Uruguay, and this would include a tariffs' reduction chronogram different for each member of Mercosur or even a 'two-speeds' trade block.

14 June 2014

Claims of Bearing Failure Explosion in Fiberboard Plant

Bearing failure has been blamed for creating an explosion at Columbia Falls USA fibreboard factory this week

Several media agencies contacted bearingcode to verify the cause of this failure, however were advised any conclusive blame to mechanical failure would not be possible without a full investigation.

COLUMBIA FALLS News, June 14 - A preliminary investigation is pointing to a mechanical failure as the cause of an explosion and fire at the Plum Creek mill in Columbia Falls.

Spokeswoman Kate Tate said that a "catastrophic bearing failure" on a raw material belt line likely caused Tuesday's explosion at the company's medium density fiberboard plant.

She added that the bearing failure on the belt line ignited raw wood fibers and the belt itself. The fire then spread to insulation on a duct pipe above the line, which ignited wood fibers inside the pipe and caused a series of explosions.

Company officials will continue their investigation next week, and the fiberboard plant is expected to be closed for about a month. The 60 employees, who work at the part of the facility, will learn more during a meeting on Monday

http://www.dailyinterlake.com/news/local_montana/bearing-failure-led-to-plum-creek-fire/article_443c84d4-f352-11e3-b0d9-0019bb2963f4.html
http://www.nbcmontana.com/news/bearing-failure-caused-fiberboard-plant-fire/26492544
http://bit.ly/SJ5gbg
http://www.washingtontimes.com/news/2014/jun/14/bearing-failure-caused-fiberboard-plant-fire/

9 June 2014

Prosino Italy Presents Reversible Bearing Rings at ITMA China

June 9, 2014 (Italy) www.prosino.com/
Prosino, the renowned Italian Bearing spinning & twisting ring manufacturer, presents at ITMA Asia 2014 the Reversible Ring, the money saving reversible ring for the first time available on the Chinese market.

The Italian technology provided by Prosino, the world ring leader with an annual production of 19 million rings and a presence worldwide since 1946, allows to double the life of spinning rings and to cut ring renovations cost.

The Reversible Ring is now available for Chinese frames: producers just have to replace the existing ring with the double life ring with a special aluminium adaptor. This is a smart solution that allows the spinners to get the maximum benefit at the minimum cost.

The advantages are the following:
-Double Ring Life: the ring can be used twice, since it has two flanges. When the first flange is over, the ring can be flipped in order to use the second one.
-Unlimited Life of the Holder: The spinner keeps the holder for a lifetime (no wear on this component).
-Energy Saving: 40% less weight
-No Problem in the Ring Fitting: The holder replicates exactly the fitting part of the ring. Absolutely no problem in the fitting on the ring rails.
-Rust Protection: The ring comes with a special carbon coating that protect the rings from rust aggression

Details for the Prosino Exhibition are listed on http://www.itmaasia.com/
ITMA ASIA + CITME 2014 Shanghai 16-20 June 2014

Prosino Borgosesia Italy for nearly 70 years is a global producer of high performance Spinning & Bearing Rings and associated Components for leading bearing manufacturers including SKF Sweden SCHAEFFLER Germany SNR France and their subsidiaries in USA INDIA CHINA & JAPAN

President Dr. Pietro Prosino - Borgosesia via Torino ITALY http://www.borgosesiarings.com/index.php/history

2 June 2014

Japanese OEM'S Top Involving Suppliers Early Development Process, 2014 study


Over the years, the WRI study has shown that automakers with 'Good-Very Good' working relations reap substantial benefits, such as suppliers being more willing to invest in new technology to meet future OEM needs as well as suppliers being more willing to share new technology with an OEM. The graph shows 'Very Poor-Poor'; 'Adequate'; and 'Good-Very Good' rankings for the Japanese 3 and the traditional U.S. domestic 3.

http://ims8.lyris.net/t/7451841/598100996/138128/0/
Toyota and Honda are better than the traditional domestic Big 3 at involving suppliers early in the product development process, according to results of the 2014 North American Automotive-Tier 1 Supplier Working Relations Index (WRI) Study compiled by Planning Perspectives Inc. (PPI) of Birmingham, MI. "From an engineering standpoint, Toyota's and Honda's continuing efforts to get suppliers involved earlier in product development, and also the effective use of suppliers throughout the Toyota product development process" rings in as the best news from the 14th annual automotive industry study, PPI President and CEO Dr. John W. Henke Jr told Automotive Engineering.

In the May 12-released study, Toyota, Honda, and Nissan were one, two, and three, respectively, in overall rankings with Honda being the ‘most preferred' customer as well as the top-ranked OEM as it relates to involving suppliers early in the product development process. Toyota and Ford had the next highest ranking for getting suppliers into the product development mix early.

The 2014 study focused on Chrysler, Ford, General Motors, Honda, Nissan, and Toyota. These six automakers comprise 86% of light vehicle production in the U.S. This year's findings were based on responses from 411 supplier personnel from 362 Tier One suppliers representing 56% of the OEMs' annual buy. Although BMW, Mercedes-Benz, and Volkswagen have been addressed in the annual study since 2010, the German 3 with manufacturing operations in North America are reported separately from the other six OEMs.
According to Henke, the Japanese automakers, especially Toyota and Honda, historically have had a commanding lead in supplier relations. But the 2008 recession, the 2011 earthquake off Japan's coast, and additional purchasing personnel at Toyota and Honda led to a rankings plummet.

Under new purchasing leadership, the domestic Big 3 significantly improved their supplier rankings. But the latest ranking trends suggest "that the Japanese automakers have figured out their problems, corrected them, and are back on track, while the U.S. automakers appear to be stagnant," noted Henke, who is also a professor of marketing at Oakland University in Rochester, MI.
The rankings put Toyota at the top for having the fewest engineering changes. "Toyota is doing the best job and is maintaining that level," Henke said.

Toyota is also the top-ranked for protecting suppliers' intellectual property and proprietary information. "There is clearly one very definite reason: Toyota, like Honda, has a set of suppliers that hasn't changed very much over the past 10 years. It is rare that they (Toyota and Honda) de-source a supplier.
"The implication being that a supplier is working with Toyota because at the time of selection that supplier was determined to be the best Toyota needed and would be able to service them in the future. Because there is relatively little turnover, there's much more certainty and more trust," Henke explained.

As was the case in 2013, Toyota was ranked tops for protecting intellectual property and proprietary information, with Honda coming in second. "And they both improved this year again, further distancing themselves in treatment of confidential information from the U.S. domestics. Nissan made strong gains in this area," Henke noted. "Toyota and Honda both have a fixed supply base. They both have approximately 400 production suppliers and rarely turn them over. That means they have no reason not to keep confidences."
As it relates to the various WRI study's scoring metrics, Nissan was the lone automaker to improve in all areas.
"Suppliers are being given significantly more flexibility in meeting Nissan's quality and piece-price objectives, said Henke. "Nissan has improved in reducing late engineering changes over all others except Toyota."
As for the most-disappointing news from this year's study, Henke had hoped to see more improvement from the traditional Detroit 3.

"Nissan, Honda, and Toyota are improving, distancing themselves from Ford, GM, and Chrysler. This certainly will impact supplier engineering as to where suppliers will allocate engineering resources when things get tight—who gets the ‘A team;' who gets the newest, best technology; who gets the best support from the supplier; etc.," noted Henke.

If the Japanese 3, the Detroit 3, the German 3 were combined on a consolidated WRI 2014 graph, Toyota would rank the highest of the nine automakers and Volkswagen the lowest.
http://articles.sae.org/13189/

27 May 2014

Singapore Convicts Bearings NSK NTN NACHI JTEKT For Corruption

In another corruption scandal involving the Bearing Industry, the Competition Commission of Singapore (CCS) has convicted 4 major Japanese Bearing Manufacturers for Price Fixing and issued fines totalling S$9,306,977 on the Parties "NSK NTN NACHI JTEKT/KOYO".

These legal proceedings bring a combine total of 36 global convictions against the Bearing Industry in 12 months 2013/14 involves: SKF SWEDEN, SCHAEFFLER GERMANY, NSK NTN NACHI JTEKT JAPAN

The CCS press release verbatim issued today by the Singapore Government Authority:

Official Statement; The Competition Commission of Singapore 27 May 2014

CCS Imposes Penalties on Ball Bearings Manufacturers involved in International Cartel
(Please click here for the PDF)
  1. The Competition Commission of Singapore ("CCS") has issued an Infringement Decision ("ID") against four Japanese bearings manufacturers and their Singapore subsidiaries (collectively, the "Parties") for contravening 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 and sale of ball and roller bearings[1] ("Bearings") sold to aftermarket customers ("Aftermarket Customers") in Singapore. Both the Japan parent and Singapore subsidiary companies were found to be jointly and severally liable for the infringement.
  2. This is CCS's first international cartel case involving foreign-registered companies and their Singapore subsidiaries. CCS is imposing financial penalties totalling S$9,306,977 on the Parties.
  3. The Parties are:
    1. JTEKT Corporation and its Singapore subsidiary, Koyo Singapore Bearing (Pte.) Ltd. (collectively referred to as "Koyo");
    2. NSK Ltd. and its Singapore subsidiary, NSK Singapore (Pte.) Ltd. (collectively referred to as "NSK");
    3. NTN Corporation and its Singapore subsidiary, NTN Bearing-Singapore (Pte.) Ltd. (collectively referred to as "NTN"); and
    4. Nachi-Fujikoshi Corp. and its Singapore subsidiary, Nachi Singapore Private Limited (collectively referred to as "Nachi")
    (Collectively, the four are referred to as "Parties", and singularly, each as a "Party")
  4. Case details
  5. Investigations in this case commenced in December 2011 after CCS received an application for immunity from Koyo under CCS's leniency programme.
  6. 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 Bearings sold to their respective Aftermarket Customers in Singapore, so as to maintain each participant's market share and protect their profits and sales ("Market Share and Profit Protection Initiative").
  7. At the meetings in Japan in the period from as early as 1980 until 2011, the Japan parent companies discussed and agreed on the overall strategies for the Singapore subsidiary companies to implement in pursuit of the Market Share and Profit Protection Initiative, among other things. At the meetings in Singapore in the period from at least 1998 until March 2006, the Singapore subsidiary companies discussed the overall strategies which had been decided by the Japan parent companies and discussed methods by which to give effect to the Market Share and Profit Protection Initiative. After the meetings in Singapore ended in March 2006, the meetings between the Parties continued in Japan and these meetings were attended by representatives from the Japan parent companies.
  8. The Parties embarked upon a series of actions to give effect to the Market Share and Profit Protection Initiative. Over the years that series of actions included setting an agreed price list and making a minimum price agreement for Singapore, agreeing on relevant exchange rates to be applied to derive the minimum prices for Singapore, and when the price of steel began to increase, the Parties agreed on percentage price increases and exchanged information on percentage price increases to be applied to Aftermarket Customers in Singapore.
  9. CCS finds that the conduct of the Parties, which includes, amongst other things, price-fixing agreements and exchanges of strategic information including future pricing intentions, amounts to a single overall infringement with the object of preventing, restricting and distorting competition. Without the price-fixing anti-competitive agreements, the Parties, as competitors, would not have been aware of the price and non-price strategies of their competitors. This uncertainty would have forced the Parties to compete for market shares via more competitive prices or non-price strategies. Price fixing is one of the most serious infringements of the Act.
  10. Financial penalties
  11. On 16 December 2013, CCS issued a Proposed Infringement Decision to the Parties and CCS received written and oral representations from the Parties lawyers. The issues raised in the representations were targeted largely towards penalties and these are set out and addressed in the Infringement Decision.
  12. Having carefully considered the Parties' representations, CCS found that the Parties have intentionally infringed the section 34 prohibition. CCS has accepted the representations that the end date of the infringing conduct for Koyo, NSK and Nachi should be the date of the Japan Fair Trade Commission ("JFTC") dawn raids of the four Japan parent companies on 26 July 2011. It is noted that following the JFTC dawn raids, the Japan parent companies took immediate steps to implement compliance programmes to ensure that their officers and employees ceased anti-competitive activities with their competitors.
  13. As such, CCS found that the period of infringement spanned from 1 January 2006 to 26 July 2011 for Koyo, NSK and Nachi, and 1 January 2006 to 6 September 2006 for NTN. Accordingly, CCS has imposed the following financial penalties on the Parties:
  14. UndertakingFinancial Penalty
    KoyoNil
    Nachi$7,564,950
    NSK$1,286,375
    NTNS$455,652
    TotalS$9,306,977
  15. In levying the financial penalties, CCS took into account the nature of the infringement and the circumstances under which the infringement was committed, duration of the infringement, aggravating and mitigating factors, as well as representations made by the Parties. In this case, a percentage starting point was applied to each Party's relevant turnover for the sale of Bearings to Aftermarket Customers in Singapore to determine the base penalty for each Party. A multiplier was then applied for the duration of infringement and that figure was then adjusted to take into account factors such as deterrence and aggravating and mitigating considerations. Further reductions in financial penalties were also given to the three leniency applicants as part of CCS's leniency programme. The first undertaking to notify CCS was granted full immunity from the financial penalties and the subsequent leniency applicants were granted reduction of up to 50% of the financial penalties.
  16. For this case, CCS set the starting point at a relatively higher level as CCS notes that the cartelised product in issue is a homogenous product, and that the Parties have a substantial share of the product market in Singapore. Further, the infringing conduct was a secretive and sophisticated cartel where the participants engaged in covert conduct, including referring to each participant by code names, unlike previous CCS price-fixing cartels. 14. Further information on the investigation, analysis of the case and the basis of calculation of the financial penalty imposed on the infringing parties are set out in the Infringement Decision and the document can be found here.
  17. CCS Leniency Programme
  18. Mr. Toh Han Li, Chief Executive, CCS, said, ‘CCS would like to emphasise that price fixing among competitors is one of the most harmful forms of anti-competitive conduct and CCS takes a serious view of such conduct. If any business is part of a cartel, CCS urges that a leniency application should be made to CCS as soon as possible in order to avoid or reduce the possibility of penalties'.
  19. CCS's Leniency Programme allows one to still apply for a leniency marker on behalf of the business and thereafter collect the information or evidence required to support the leniency application even without substantial information or evidence of the cartel. If a business meets the relevant criteria and if it is the first to notify CCS then it will be entitled to immunity from financial penalties (if CCS has not commenced investigations yet) or a reduction of up to 100% of the financial penalties (if CCS has already commenced investigation). For a subsequent leniency applicant, which co-operated with CCS and provided evidence of the cartel activity, it may be entitled to a reduction of up to 50% of the financial penalties. More details on the Leniency Programme can be found at http://bit.ly/CCSleniency.
About The Competition Commission of Singapore (CCS)
CCS is a statutory board established under the Competition Act on 1 January 2005 to administer and enforce the Act. It comes under the purview of the Ministry of Trade and Industry. The Act empowers CCS to investigate alleged anti-competitive activities, determine if such activities infringe the Act and impose suitable remedies, directions and financial penalties.
For more information, please visit www.ccs.gov.sg.
For media clarification, please contact
Ms. Lim Le-Anne
Senior Assistant Director
Strategic Planning Division
Competition Commission of Singapore
Email: lim_le-anne@ccs.gov.sg
DID: 6325 8304 / 9478 8824
Ms. Teo Hwee Leng
Assistant Director
Strategic Planning Division
Competition Commission of Singapore
Email: teo_hwee_leng@ccs.gov.sg
DID: 6325 8126
26 May 2014

New Statistical Bearing Information 2015

Global Import & Export bearing statistics can be manipulative depending on the subject, description of product and variety of content. Although in recent years Governments have standardized procedure to provide better & more accurate information, their still remains argument for commercial interpretation and indiscretion

Bearingcode had previously relied on various statistical analysis from press releases by bearing manufacturers raising concern to their accuracy with brand, description and authenticated country of origin, and of course the ambiguous amount attributable to the manufacturer

SKF Industries recently released a global sales and marketing statistical analysis although comprehensive, this information does not provide government or commercial independent verification. Other corporations including the Freedonia Group http://www.freedoniagroup.com/World-Bearings.html provide yearly bearing analysis but not regular updates for specific locations and limited in content

Bearingcode has commenced its own Statistical Analysis for the Bearing Industry to be completed by 2015. We aim for a non biased commercially free data base that will provide accurate global information and facilitate via an easy access on-line link - Bearingcode on the move

24 May 2014

Nome wind turbine collapses; exact cause still unknown

May 23, 2014 • Alaska
A wind turbine in Nome fell down over the weekend, though it remains unclear exactly why.
Bering Straits Native Corp. said it is investigating the "wind turbine foundation failure" that occurred Saturday at the Banner Wind Project outside of Nome. The corporation co-owns the project with the Sitnasuak Native Corp. and sells electricity to the local utility.

Bering Straits spokesperson Matt Ganley said in an email that the initial investigation indicates that a portion of the foundation "failed" at one of the 16 operating 50-kilowatt turbines located at the site, though he did not elaborate as to why. John Handeland, utility manager for the Nome Joint Utilities System, said the turbine was totally destroyed in the collapse.
Handeland said the utility purchased 1.2 megawatts of energy last year from the wind project, or about 5 percent of the city's overall load. Diesel-powered generators produce most of the utility's power.
The turbine that collapsed is a 50-kilowatt turbine, only producing a small amount of electricity. Handeland said it would not affect power production in Nome. "Percentage-wise it's just a drop in the bucket," he said.
Ganley wrote in an email that Bering Straits was "disappointed" in the equipment failure. He said the other turbines would be thoroughly inspected to correct any existing or potential

SUZANNA CALDWELL | Anchorage Daily News | May 22, 2014 | photo collapse similar to Nome

Outcome of US Wind Turbine with a single engine Plane resulting in 4 deaths - 28 April 2014

http://www.capjournal.com/access/four-dead-after-plane-strikes-wind-turbine/article_fef0a122-cf5b-11e3-a984-0019bb2963f4.html

16 May 2014

NSK BEARINGS CONVICTED AGAIN FOR CORPORATE CRIME

NSK Bearings Australia has been Convicted again for Corporate Crime with a $3 million fine after three Japanese executives operated a Price Fixing Cartel for more than 10 years.

This creates a record of 9 separate Convictions registered worldwide against Japan's NSK Group with total penalties of $400 Million approx. confirming a culture of criminal activity systemic throughtout this NSK Group, their executives and Nippon counterparts

Senior Japanese executives from NSK and two other bearings companies, Nachi Australia and Koyo Australia, formed the Southern Cross Association cartel which met at Japanese restaurants in Sydney and Melbourne to discuss confidential pricing plans between 2000 and 2011.

The Federal Court on Tuesday found that after restaurant meetings, NSK Australia hiked prices by four per cent in May, 2008 and by 10 per cent in February, 2009. The Court ordered NSK Australia to pay penalties of $3 million for its involvement in cartel conduct in relation to the price of bearings in Australia.

It found understandings to fix prices were implemented through a long-standing practice between executives of the three companies. Mr. Rod Sims, the Chairman of the Australian Competition and Consumer Commission (ACCC), which initiated the action, said although the case did not affect bearings used in the manufacture of vehicles, the conduct did affect the price of bearings used for repairs to vehicles.

"Cartels cheat consumers and other businesses," he said. "The ACCC will continue to tackle cartel conduct with the full force of the law." The court again ordered NSK to not engage in similar cartel conduct for three years and to comply with a training program. The company also received a discount for co-operating with the ACCC during the investigation. NSK Australia, whose global parent company is headquartered in Tokyo, has a 10 to 13 per cent share of the Australian bearings market.

In October 2013 the Australian Federal Court handed down a penalty of $2 million against KOYO Australia for its involvement in the bearings cartel.

       
12 May 2014

False Bearing Claims & Fake Product Submission

Claims of counterfeit bearings and other industry products including electronics will be subjects for reporting procedures to eliminate false advertising intended to gain a marketing advantage, are listed in next months CALCE convention Maryland USA

This global Counterfeit symposium June 2014 Maryland USA will be the largest group of representatives from Government, Industry and Institutions ever assembled. The 4 day convention organised by CALCE from University of Maryland & SMTA has a full program detailing all forms of activity relating to causes, controls and recommendations for reporting procedures in piracy prevention

Since 2007 numerous claims of counterfeit bearings have proven false and misleading, were produced primarily as marketing propaganda to gain media attention for their particular brands; the eye catching Schaeffler SKF burning of 40 tons of non fake bearings in Schweinfurt Germany is testament to that. This false media advertising gained such a momentum causing many institutions including NASA to spend endless hours in time money and reports in checking bearings only to find a Phantom myth. NASA states they have never sighted a Fake bearing. NASA http://www.techbriefs.com/subscribe-footer-67

Unfortunately the same executives of major bearing manufacturers recently convicted for $ Billions Price Fixing corruption, also set up the Cartel member World Bearing Association & Stop Fake Bearings. The advertising of fakes went ferrel and both distributor and end-user had little recourse but tow the media line in fear of persecution. A rather unique but illegal marketing ploy in the name of a handful of bearing brands at the expense of their competitors or more commonly known as 'Match Fixing' with executive bearing players colluding before & after each game

This type of WBA counterfeit 'Match Fixing' albeit highly illegal will be addressed by the attendees from Government & Institutions in Maryland June 2014. We invite prior submissions from any bearing representative if unable to attend http://www.calce.umd.edu/general/faculty/bios/das.html

'Bearing' Match-fixing - where do we go from here?

calce.umd.edu/symposiums/SCEPJune2014/SCEP2014East.html

5 May 2014

Counterfeit Bearings + Related Products 2014 Symposium

On June 24-26, 2014, CALCE and SMTA will host the 2014 Symposium on Counterfeit Products for Mechanical and Electronic Parts in the Supply Chain at the College Park Marriott Hotel and Conference Center, College Park, Maryland, USA.

An important opportunity to learn from and share your insights with experts from government, industry and academia who are addressing the counterfeit problem. This symposium is the best forum in the country for presenting and experiencing about the latest technology and policy developments in the area of mechanical and electronic supply chain and counterfeit detection and prevention

The rapid and drastic changes in the supply chain in recent years has contributed directly to the scourge of counterfeit Electronics to Bearings and other mechanical products. Less well known, however, is how counterfeiting and piracy are also impacting other related sectors, including energy storage and generation equipment, electromechanical parts, wirings, switchgears, connectors, fasteners, that impact on bearing products in critical applications.

To address these problems, innovative scientists and entrepreneurs are developing robust products and processes, new standards are being created, and government and international bodies are developing new policies and legal structures.

The meeting program can be viewed at:http://www.calce.umd.edu/symposiums/SCEPJune2014/SCEP2014East.html

All interested parties are encouraged to attend. For more information, please contact Dr. Diganta Das http://www.calce.umd.edu/general/faculty/bios/das.html

Embraer Joins the CALCE Consortium

CALCE welcomes Embraer, Inc. as a new member of the CALCE Products and System Consortium

CALCE has worked with industry developing best practices for design, test, and supply chain management, as well as conducting industry driven research to reduce cost, improve quality, and assure product reliability.
Embraer joins other CALCE avionics members, including Airbus, BAE, Boeing, GE, Honeywell, Rockwell Collins, Lockheed Martin, Moog, Northrup Grumman, Raytheon, Rolls Royce, and UTAS.
Our consortium provides a forum for industry members to examine fundamental challenges facing their respective organizations.

A complete list of CALCE members can be found at http://www.calce.umd.edu/general/membership/members.html
For more information on becoming a CALCE member, please contact Dr. Michael Osterman
http://www.calce.umd.edu/general/faculty/bios/osterman.html
BEARINGCODE is a affiliate of CALCE

28 April 2014

Cartel-Busting Not Boring For Bearings Executives

Market-rigging in unsexy industries costs consumers a lot, but consensus say simple solution is Jail

Mention price cartels and many people will think of big, overt ones like the one OPEC runs for oil and the now-extinct one for diamonds. But at least as damaging are the many secret cartels in such unglamorous areas as ball-bearings and cargo rates, which go on unnoticed for years, quietly bumping up the end cost to consumers of all manner of goods and services.

Collusion among producers to rig prices and carve up markets is thriving, with the cartels growing ever more intricate and global in scope. Competition authorities have uncovered several whopping conspiracies in recent years, including one in which more than 20 airlines worldwide had fixed prices on perhaps $20 billion of freight shipments. They were fined a total of $3 billion; and so far the compensation claims from ripped-off customers comfortably exceed $1 billion. One academic study found that the typical cartel raised the price of the goods or services in question by 20%. Another suggested that cartels were robbing poor countries' consumers of tens of billions of dollars a year: if so, negating all the aid that rich countries' governments send them.

Investigators are still unravelling a huge global network of cartels among suppliers of a wide range of car parts. Makers of seat belts, radiators and foam seat-stuffing have had hefty fines slapped on them. Earlier this month the European Commission fined five makers of automotive bearings a total of €953m ($1.32 billion). This week its investigators raided a bunch of makers of car exhausts. Also in recent days, Brazilian prosecutors have charged executives from a dozen foreign train-makers accused of rigging bids for rail and subway contracts in the country's main cities. Price-fixing has infected high finance, too. Some of banking's biggest names stand accused of fiddling interest-rate and foreign-exchange benchmarks.

The good news is that enforcement has got tougher, smarter and more co-ordinated. Gone are the days when price-fixers got a slap on the wrist. Firms can expect swingeing fines, and bosses can go to jail. Since many cartels now operate across borders, so do investigators: American and Japanese trustbusters joined forces to flush out the car-parts cartels. And incentives for whistleblowers have also increased: around 50 countries now offer immunity or reduced penalties for snitches.

That is all for the better, but the penalties for price-fixing remain too mild. The best study of the issue so far concluded that, given the still-low risk of detection, collusion pays. Yet beyond a certain point—which the fines now imposed by American and European regulators have probably reached—fines inflict so much damage on guilty companies that they undermine competition instead of enhancing it.

The answer is stiffer prison sentences, particularly for senior executives. American courts, only too ready to lock up other types of miscreants for a long time, have rarely jailed egregious price-fixers for anything like the maximum of ten years that the law allows. Other countries have even more scope to increase sentences.

More can be done to aid detection, too. Statistical tests to "screen" markets for unusual pricing patterns helped uncover the interest-rate and foreign-exchange scandals. Potential conspirators may think twice if they suspect their market is being screened. European and Latin American trustbusters are making good use of the technique; their American counterparts should do so, too. Deploying such cutting-edge technology is costly; and increased funding is a big ask at a time of public-sector parsimony. But cartel authorities in Europe and America generally bring in far more than they cost to run, so extra money pushed in their direction is likely to be well spent.

Another way to discourage the formation of cartels is to factor the increased risk of collusion into scrutiny of proposed mergers. Price-fixing is likelier, and easier to sustain, with fewer players. This could never be the primary determinant in competition decisions, but it should be in the mix. Blocking a few more mergers—whose benefits anyway tend to be over-egged—might both save companies from themselves and spare their customers the costs of collusion

19 April 2014

New Free Trade Agreements Across Asia

The political push for Free Trade Agreements (FTA) from most Asian Pacific countries has gained momentum http://en.wikipedia.org/wiki/Pacific_Rim with landmark deals that will bolster trade across Asia by cutting tariffs, duties and subsidies to zero for many Industrial and household goods from Cars to Clothing including Ball Bearings, lubricants + various Auto products, with Education the big winner. Apart from North Korea, ASIAN trade benefits will gain significantly if Politicians can weed-out old habits and replace with new reforms.

Prime Minsters of Japan + Australia sign FTA agreement April 2014 Estimated US$18 Billion PA http://www.cnet.com.au/japanese-electronics-see-tariff-cuts-thanks-to-free-trade-agreement-339347060.htm

China with a vast mineral trade with Australia are keen to wrap-up its FTA within months http://www.smh.com.au/federal-politics/political-news/free-trade-agreement-china-wants-to-send-workers-into-australia-20140415-zquve.html

China, Australia, South Korea, India & Canada are intending to sign FTA's by November 2014 promising better sustainable political ties with cost advantages of US$100's Billions in free trade. USA and Russia both play important roles in the Asian Pacific rim have strongly indicated their desires to join this FTA push. Last week USA stated it was keen to join Australia to sign a FTA with Japan, however many hurdles including the vast Auto Industry having mountains of paper work to combat before reaching reform

The European Union now has many contentious issues with its FTA's including the EURO currency, Ukraine and rising from recession will face this Asian Pacific FTA and the real prospect of losing United Kingdom from its ranks with the 2017 UK referendum, voting for its future trading partners currently polling 50-50 chance amongst the pollies http://www.express.co.uk/news/uk/469797/Does-Britain-want-to-cut-ties-with-EU

10 April 2014

Asian Bearing Response to Recent EU Corruption

Short video clip sent to Bearingcode, thanks to the Asian bearing Owner who wishes to remain anonymous

"Unsung Hero" พบเรื่องราวดีๆ ที่มีได้ทุกวันที่ http://www.thaigoodstories.com/ (click to view, its recommended)

Against Corruption and Greed, She states:

"Dedicating to Executives of SKF SCHAEFFLER NTN NSK JTEKT NACHI involved in US$1.33 Billion penalty EU Price Fixing scandal - Thank you for damaging our Industry" modified translation

5 April 2014

SKF Face Increase Challenges From Corruption

The Objection filed against SKF Industries to the acquisition of Kaydon Corporation November 2013, will now face new Price Fixing corruption evidence from the EU Commission Belgium findings dating from April 2004 to July 2011.

The EU $1.33 Billion penalty for corruption against 6 bearing manufacturers on 19 March 2014 reflects the extent of 7 years continuous collusion and secret meetings by SKF Industries while impersonating a good corporate citizen to US government authorities in their efforts to acquire Kaydon USA in 2013
/Objection2.pdf Objection Filed: SKF Industries Acquisition of Kaydon Corp. USA

With further evidence from the Brazil SKF corruption verdict December 2013 extended over many years and the French SKF Price Fixing decision, these details will also be filed. It has been alleged SKF Industries failed to include Anti-Trust legal decisions in official statements to US Authorities and Regulators for Acquisitions by a Foreign Corporation

Brazil Corruption: http://www.cade.gov.br/Default.aspx?ce62b078899e75be4bf84b192a13
French Corruption: http://www.autoritedelaconcurrence.fr/user/standard.php?id_rub=128&id_article=177
Belgium Corruption: http://europa.eu/rapid/press-release_IP-14-280_en.htm

The SKF Executive board has denied all knowledge of the above corrupt activity, however new evidence from these cases allege otherwise. The SKF board also knew allegations of corrupt press releases written by a senior executive http://www.skf.com/caribbean/news-and-media/news-search/2009-Jun-11.html

The extent of corrupt activity and the organization in maintaining collusion over 20 years would have involved many SKF senior managers especially from the bonus system of large amounts, but the SKF board maintains no knowledge and says its internal Code of Conduct will continue, albeit with continued failure

Note: Trade + Auto awards received during corruption periods to 19 March 2014, are considered void

SKF Industries accepted a General Motors award 12 March 2014, just 7 days before the EU corruption was announced 19 March 2014. Quite astounding, considering SKF was convicted for Price Fixing against GM and other Auto Industry manufacturers knowing they the SKF INDUSTRIES GROUP cheated them over a $1 Billion
SKF recognized by General Motors as a 2013 Supplier of the Year Winner


European Commission Press release Brussels
Re: ANTITRUST
Commission fines producers of car and truck bearings cartel settlement
European Commission - IP/14/280 19/03/2014
Action for damages

Any person or firm affected by anti-competitive behaviour as described in this case may bring the matter before the courts of the Member States and seek damages. The case law of the Court and Council Regulation 1/2003 both confirm that in cases before national courts, a Commission decision is binding proof that the behaviour took place and was illegal. Even though the Commission has fined the companies concerned, damages may be awarded without these being reduced on account of the Commission fine.


27 March 2014

Vestas EU Upholds Strict Anti-Corruption Policy

Wednesday March 26 2014 - Five Vestas executives, among them the former Germany sales manager Andreas Eichler have terminated their jobs at the Danish wind turbine manufacturer amid allegations of corruption in the GERMAN media.

Vestas Wind Turbine group a world leader in fighting against all forms of corporate corruption both internal and external, exercised their Zero Tolerance Level by releasing employees who where alleged to have violated the Code of Conduct.

The company at headquarters in Denmark is staying tight-lipped about the matter and declined to release any information beyond the number of employees that have departed. "Vestas can confirm that a number of employees in Vestas Central Europe, including Andreas Eichler, have left the company. We are not commenting on the nature of their departure,"

A Vestas spokeswoman described the dismissals as a inter-company matter and respected the rights of all concerned. Vestas said in a written statement ."Vestas considers this a matter between the company and the affected employees and therefore we do not have any further comments."
Vestas German execs go amid claims

A global innovator in Wind Turbine Manufacturing, Vestas has regained top position by securing number one Market Share leader with many countries developing high tech solutions combining with Vestas expertise

Vestas returns to number one in BTM survey

19 March 2014

SCHAEFFLER SKF NSK NTN JTEKT NACHI - EU Fines $US1.33 Billion

Six major bearing manufacturers SCHAEFFLER SKF NSK KOYO NTN NACHI were ordered to pay a combined 953.3 million euros (US$1.33 billion) to settle a European Union probe into an automotive-parts cartel announced Wednesday March 19, 2014

"We will not stop here, we are still investigating other suspected cartels" Joaquin Almunia, the EU's antitrust chief, told reporters in Brussels today. Adding "these Bearing manufacturers secretly operated one of the largest cartel the EU had experienced, extending for over 7 years from April 2004 until July 2011 from bearing sales volume of 2 billion per year"

Schaeffler was fined the highest amount 370.5 million euros as part of the cartel settlement. SKF received a 315.1 million euro penalty NTN Japan to pay 201.4 million euros NSK Japan received a 62.4 million euro penalty and Nachi-Fujikoshi Japan to pay 3.96 million euros - JTEKT/KOYO Corp Japan escaped a 86 million euro fine for blowing the whistle on the cartel, the EU said.

Schaeffler SKF and NTN had set aside provisions for an EU fine. Companies that agree to settle EU cartel cases receive a reduction of 10 percent of their fine, with additional discounts for aiding regulators

Schaeffler spokesman Mr. Christoph Beumelburg declined to comment, SKF Mr Johnstone said "it should never reoccur", Whistleblower JTEKT stated "we have taken appropriate measures to prevent recurrence," NTN's French unit declined to immediately comment. NSK and Nachi-Fujikoshi didn't immediately reply.

Although the expected comments of "shouldn't reoccur" this latest penalty brings the 12 month combined global fines to US$2 Billion against these 6 Bearing corporations, with more expected from the Americas and other countries. There has been no major changes to bearing Executives or to Policy, no Remorse shown to Stakeholders & Investors and no Regulation for any future deterrence. With the same old, same old, it appears the bearing corporate mentality is permanently stagnant, making avoidance somewhat futile

13 March 2014

Bearing News Transparency Statements

As reported last month, Vestas Group the largest Wind turbine manufacturer stated that suppliers must declare Anti Trust, Anti Corruption + Behavior statements inclusive of bribery + Price Fixing + Collusion. Vestas also confirmed a mandatory Zero Tolerance Requirement www.vestas.com/en/about/sustainability#!anti-corruption

Transparency to past and present Bearing corporate performances include:

Six bearing manufacturers NSK KOYO/JTEKT NTN NACHI JAPANESE, SKF SWEDEN, SCHAEFFLER GERMANY have accumulated 24 global criminal convictions for Anti Trust, 3 guilty pleas awaiting sentencing, 5 Executives given prison sentences, further legal cases pending in 2014/15.
The 2013 Criminal penalties exceed US$1.6 Billion against these 6 offending Bearing corporations

Further legal proceedings filed in Michigan Court for US Class Actions against the same 6 manufacturers

For the record, Bearingcode will uphold all bearing industry Anti-Trust and Anti Corruption statements, transparency the key component.

Over recent years, a number of allegations of false, misleading and damaging News statements by bearing manufacturers to gain unfair trading advantages are now subject to government investigations include SKF Fake Court proceedings with a false jail sentence of 12 months imprisonment http://www.skf.com/group/news-and-media/news-search/2013-02-04-swedish-court-rules-for-criminal-conviction.html

SCHAEFFLER & SKF media release of False Counterfeit bearings to gain global news headlines, and other misleading news articles are considered for legal proceedings by EU and other DOJ agencies.

Below is the first known false and mischievous press release by SCHAEFFLER Germany, others include from Australia Bulgaria Indonesia United Kingdom Czech Republic France India Sth America - these press releases are circulated worldwide as a crisis counterfeit bearing scenario to headline their brand to prominence and gain public attention with sympathy, eliminating legitimate competition. It continues today.

FALSE AND MISLEADING PRESS RELEASE BY SCHAEFFLER & SKF COMBINED - SCHWEINFURT

10 March 2014

Auto Transparency & Space Technology Innovation

The Auto Industry is placing Transparency at the forefront of their marketing strategy with Tesla leading the way http://www.teslamotors.com/, "It's not just about the pricing strategy, but more to show how to communicate with Chinese consumers in the context of a more Transparent pricing world," said Shawn Wu, Shanghai-based project manager at consultancy Smith Street Solutions http://www.smithstreetchina.com/

In China, where higher prices mean prestige, the US luxury carmaker Tesla is taking a bold step to win over clients and cachet by curbing the markup to just half of what some of its rivals can command. Though it risks relegating its brand to a lower tier, Tesla's marketing strategy could prove a model for other imported products including Bearings which have come under fire from China state media and regulators for allegedly ripping off shoppers with inflated prices.

Last week Daimler AG stated it approved of Tesla's transparency innovation and will also move towards regulation as a marketing strategy, this will coincide with Daimlers general corporate governance policy http://www.daimler.com/company/corporate-governance

Auto price Transparency regulation is a refreshing Positive and hopefully the Bearing Industry can change its Price Fixing misery to innovative marketing. Regulation of any sort has always been shunned by Bearing Manufacturers resulting in mountain size legal proceedings, loss of profits from Court penalties that unfortunately, promises more in 2014. The Bearing Industry given the chance, is capable of creating innovative marketing ways similar to Tesla, and maybe launch into limelight with younger grander ideas that will turn the legal spotlight away.

For example, Tesla Motors Inc. CEO Elon Musk is showing bold innovation by taking on ventures against Lockheed Martin Corporation (NYSE:LMT) and the Boeing Company (NYSE:BAM) http://www.valuewalk.com/2014/03/tesla-motors-inc-tsla-ceo-now-takes-on-boeing-lockheed-martin/ - maybe seen by some as outrageous, but better to fund projects in the market place than to spend on legal penalties from Price Fixing or unknown responsibilities from acquisitions

Innovation is possibly best captured with Space Engineering Technology, particularly when our affiliated Groups NASA, SAE ACBG (Airframe Controls Bearing Group) have involvement. The below YouTube clip made possible by NASA illustrates the high degree of Transparency combining Standards and Regulations. This is a must view tape and urge you to take a moment to view outer space within the confines of the Space Station as explained by Ms. Sunita Williams

In her final days as Commander of the International Space Station, Sunita Williams of NASA recorded an extensive tour of the orbital laboratory and downlinked the video on Nov. 18, just hours before she, cosmonaut Yuri Malenchenko and Flight Engineer Aki Hoshide of the Japan Aerospace Exploration Agency departed in their Soyuz TMA-05M spacecraft for a landing on the steppe of Kazakhstan. The tour includes scenes of each of the station's modules and research facilities with a running narrative by Williams of the work that has taken place and which is ongoing aboard the orbital outpost.

Click here: Departing Space Station Commander Provides Tour of Orbital Laboratory - YouTube

1 March 2014

Chinese Clear Vestas-MHI JV - Bearing Approvals

Vestas' Jens Tommerup, right, chief executive of the joint venture, and MHI wind boss Jin Kato

Vestas Denmark EU said its offshore wind joint venture with Japan's Mitsubishi Heavy Industries (MHI) has now received all necessary regulatory clearances from authorities in Europe and Asia

The final approval needed came when China's competition authorities waved through the Joint Venture
"Final closing of the joint venture is expected to take place in the beginning of the second quarter of 2014," said a statement from the Danish wind turbine group. The 50/50 offshore wind alliance was announced last September after a year of negotiations.
The Joint Venture is being led by CEO Jens Tommerup, formerly Vestas's Asia-Pacific & China boss

Vestas 8MW in line for UK project

The Vestas V164 prototype

Dong Energy has named Vestas' 8MW V164 turbine as its preferred choice for its Burbo Bank Extension project in the UK. The London announcement is a big boost for Vestas and its newly-formed JV with Mitsubishi Heavy Industries, which is competing with the likes of Siemens, Areva and Alstom for European offshore orders for the giant new turbine

Dong said its choice of Vestas as preferred supplier is conditional on the project, planned at 258MW, being granted a contract for difference (CfD) under the UK's new support arrangements, and on a detailed supply agreement being reached with its Danish compatriot. Burbo Bank Extension will be built adjacent to the existing 90MW Burbo Bank wind farm

Vestas has set hard rules for Ethics and Moral standards that must be observed for all intend Manufacturers and Suppliers www.vestas.com/en/about/sustainability#!anti-corruption and ‎Vestas Code of Conduct set forth a zero tolerance policy towards any form of Corruption which is required under the PACI principles.

The Vestas Code includes all Bearing Manufacturers and Brands for past legal notifications for Anti-Trust that will test the Bearing Industry; especially now that Chinese Bearing brands will be accepted for approval under the Vestas-MHI China agreement

23 February 2014

SKF Industries Convicted of Brasil Price Fixing

The Brazilian Government has convicted SKF do Brazil Ltda of Price Fixing after deliberations involving 5 senior Commissioners found SKF guilty of corruption and condemned their business practises. This guilty decision after a long trial, was based on Consumer advice and Investigations into retail Price fixing concluded SKF violated state Law. The penalty is based on SKF's revenue to be determined with Conviction registered; this will be SKF Industries third global conviction for corruption once regarded a Bell-Weather corporation.

http://www.cade.gov.br/Default.aspx?192cfa0ee73dd35fab98a8bc97a0
http://en.wikipedia.org/wiki/Administrative_Council_for_Economic_Defense
http://en.wikipedia.org/wiki/Government_of_Brazil


According to the Administrative Council for Economic Defense – CADE decision, in order for retail price fixing to be lawful, a company must prove economic efficiency gain1 . The council made this decision during trial of the administrative proceeding No. 08012.001271/2001-44, which held an investigation of the practice by the company SKF do Brazil Ltda., whom did the practice for seven months between the years 2000 and 2001. CADE's Commissioners condemned the practice by five votes to two.

Trial started in 2009, when the reporting commissioner, César Mattos, voted in favor of filing the case based on the argument that the conduct did not generate anticompetitive effects. On occasion, commissioner Vinicius Marques de Carvalho - now president of Cade – asked for more time to assess the proceeding, and in January 2010, Carvalho voted for condemnation of the practice. For Carvalho, in a price fixing conduct the company has the burden to prove economic efficiency gain which did not happen in the case. His vote suggested applying a fine to SKF in the amount of 1% of company revenues.

In the votes that followed, Commissioner Ricardo Ruiz condemned the practice, commissioner Olavo Chinaglia voted for filing the case and the president of Cade at the time, Fernando de Magalhães Furlan for condemnation.

During last trial session on Wednesday (30/01), Commissioner Marcos Paulo Verissimo and Eduardo Ribeiro Pontual, both agreed with the vote of today's president and in favor of condemnation of SKF. At the end of the trial session, CADE's President stated that this decision generates an important reference for companies. "Any behavior that is a restriction directly related to price may be targeted by CADE, whereas there is certain skepticism related to efficiencies that outweigh the anticompetitive risks."

Página inicial > Sala de Imprensa > Notícias
CADE strengthens anticompetitive conducts repression in 2013

Dated: 30/01/2014
Brasil:CADE

The Brazilian Administrative Council for Economic Defense – CADE rendered 22 condemnations to administrative proceedings regarding anticompetitive conducts in 2013, applying a total amount of BRL 491.6 million in fines. The number of condemnations by infractions to the economic order is the highest registered in the last five years.

There were two condemnations in 2012 and only one in 2011. CADE applied administrative sanctions in four proceedings in 2010, and in two in 2009.

This increase is due to the fact that CADE's Tribunal has been able to focus on proceedings judgments regarding anticompetitive conducts – such as cartels and price fixing. Only in 2013, CADE evaluated 38 cases on the subject. Since 2009, this number did not surpass 18.

After the change in the Brazilian competition legislation in 2012, CADE has undergone a institutional and management reform that made merger analysis more quickly – the average period for the decisions is 24 days. Thus, the antitrust agency gained efficiency and intensified the combat to anticompetitive conducts, especially cartels. Of the 22 condemnations in 2013, 13 were collusion cases.

In addition to the concluded judgments, in 2013, CADE's General Superintendence opened 14 new administrative proceedings to investigate infractions to the economic order and carried out two dawn raids. The Superintendence also concluded the instruction of 49 conduct cases, submitting them to the Tribunal for evaluation, and, afterwards, for the final decision.

Merger control – Along 2013, CADE judged 447 mergers. Among them, 87% were approved without restrictions, 10% were authorized with some sort of restriction, and 1% was blocked. The blocked transactions, a total of three, were submitted under the regime of the previous antitrust law (Law 8.884/94).

In the past year, 377 mergers were filed.

Recognition – Along 2013, CADE received important recognitions, such as four stars in the evaluation of the Global Competition Review – GCR, specialized in competition policy and regulation. Annually, the publication analyzes the performance of agencies throughout the world, bestowing on them rates between one and five stars.

With four stars, the Brazilian autarchy jumped from the thirteenth to the eighth position in the best antitrust authorities in the world rank, and only stayed behind the European Union, France, Germany, United Kingdom, United States of America (Department of Justice's antitrust division and Federal Trade Commission), Japan and Australia.

One more recognition to the competition authority, nationally, occurred with the 18th Innovation in Federal Public Management Contest, promoted by the National Public Administration School – ENAP. CADE's previous analysis regime in mergers was selected among the ten winning governmental actions of the contest. The announcement of each action's position will happen in the awarding ceremony, in March 2014.

Cade's Public Relations Unit
(61) 3221-8518 / 3221-8444 / 9132-2193

16 February 2014

Auto Corp Fined $425 Million, Price fixing + Failed Disclosure

TOLEDO, Ohio Feb 13 - Bridgestone Corp. has agreed to plead guilty and pay a $425 million criminal fine for its alleged role in a conspiracy to fix the prices of rubber anti-vibration automotive parts, the U.S. Department of Justice said today.

The $425 million fine agreed to in the plea agreement is large when compared to those levied against the 25 other suppliers including bearings JTEKT/KOYO and NSK Group that have agreed to plead guilty as part of the ongoing price-fixing investigation.

Justice Department officials said that the reason was because Bridgestone had been convicted of similar charges and paid a $28 million fine in 2011 for conspiring to fix prices in the marine hose industry, BUT failed at that time to disclose its activities in the automotive sector.

"The Antitrust Division will take a hard line when repeat offenders fail to disclose additional anticompetitive behavior," Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division's criminal enforcement program, said in a written statement. "Today's significant fine reaffirms the division's commitment to holding companies accountable for conduct that harms U.S. consumers."

Bridgestone is the 26th automotive supplier in the U.S. that has agreed to plead guilty to price fixing charges as part of the three-year-old investigation, which has also resulted charges against 28 individuals. In total, the companies and individuals have agreed to pay more than $2 billion in criminal fines.

The failure to disclose prior convictions in Anti-Trust statements is viewed as reprehensible that carry server penalties including imprisonment. The US ball bearing allegation of failure to disclose EU France anti-trust convictions and for acquisitions since September 2002 could be a crucial pending issue.

NOTE: In response to the steady expansion of global civil investigations, the FTC and DOJ recently signaled an increasing willingness to disclose confidential information across borders to other enforcement agencies. To facilitate more open information sharing with international agencies, the FTC and DOJ jointly released a revised model confidentiality waiver last month for use in merger and non-merger civil investigations which involve concurrent review by US antitrust enforcers and non-US competition authorities. Accompanying agency guidance was also released

7 February 2014

NSK-AKS Corruption Investigation by Japan Fair Trade Commission

Tokyo (Japan) Amatsuji Steel Ball Mfg. Co., Ltd. (Headquarters: Osaka, Japan, President Kenichi Yamanaka) ("AKS"), a subsidiary of NSK Ltd., was investigated on January 21, 2014 by Japan Fair Trade Commission ("JFTC") in relation to the Japan Antimonopoly Act regarding sales of its products.

Locations investigated include the company's headquarters in Osaka and some other sales branches in Japan.

NSK and AKS stated cooperation with the JFTC.

This is NSK's 9th Corruption investigation globally, involving various partners with 8 Convictions and 100's million US$ in penalties

6 February 2014

Another NSK Penalty for Corruption and Canadian Conviction

Tokyo, Japan, January 31 2014 (January 30, 2014 Canadian Eastern Time)- NSK Ltd. (NSK; Headquarters: Tokyo, Japan; President and CEO: Norio Otsuka) was ordered to pay a fine of CA$ 4.5 million (410 million yen) by the Quebec Superior Court of Justice for participating in activities that violated the Canadian Competition Act in relation to certain sales of automotive bearings in Canada.

NSK and its subsidiaries have been fully cooperating with the Canadian Competition Bureau's investigation into certain sales of automotive bearings in Canada. Based on the results of an internal investigation into the alleged violation, NSK negotiated with the authorities and concluded a plea agreement. As a result, the Quebec Superior Court of Justice administered the above fine.

NSK statement: We express our sincere regret for the concern this matter has caused our shareholders, customers, and other stakeholders. NSK and its subsidiaries regard the situation with the utmost seriousness and have taken and will continue to 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.

We will record the fine as an extraordinary loss in the third quarter of the year ending March 2014, and the impact is insignificant.
Footnote: Criminal convictions outweigh the NSK loss for 20 years. That's not insignificant

2 February 2014

New Counterfeit Detection By CALCE University of Maryland USA

Bearingcode's education partner CALCE http://www.calce.umd.edu/ will conduct a series of Webinars commencing February 2014 that directly relate to the Bearing Industry. The University of Maryland USA first commenced Counterfeit Avoidance with the Electronic Industry, now facilitates Bearings as a joint global information centre

webmaster@calce.umd.edu

Michael Pecht

Chair Professor and Director
Center for Advanced Life Cycle Engineering (CALCE)
A. James Clark School of Engineering
pecht@calce.umd.edu

  Counterfeit Detection and
Avoidance
 
  Thursday, February 13, 2014

11:00 AM - 12:00 PM EST



 
Join us for a Webinar on February 13

Counterfeit parts present a security, safety and reliability concern for the entire electronics industry. Detection of counterfeit parts in systems raises questions of equipment manufacturer practices and and can lead to costly corrections and harm organizational reputations. CALCE has been at the forefront in the detection and avoidance of counterfeit parts. Through, our research a number of proven methods to address the issue of counterfeit parts have been developed.

This seminar will review approaches for counterfeit part detection and avoidance.

About the Presenter: Dr. Diganta Das (Ph.D., Mechanical Engineering, University of Maryland, College Park, B.Tech, Manufacturing Science and Engineering, Indian Institute of Technology) 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 is an editorial board member for the journal Microelectronics Reliability and Circuit World. He is a Six Sigma Black Belt and a member of IEEE, IMAPS and SMTA.

System Requirements
PC-based attendees
Required: Windows® 8, 7, Vista, XP or 2003 Server

Mac®-based attendees
Required: Mac OS® X 10.6 or newer

Mobile attendees
Required: iPhone®, iPad®, Android™ phone or Android tablet

Reserve your Webinar seat now at:
https://www2.gotomeeting.com/register/678388954

28 January 2014

SKF Non Revealing 2013 Report

Today's 2013 SKF financial statement reveals little and avoids the Elephant in the Room on a number of known matters

SKF financial's http://www.businesswire.com/news/home/20140128005832/en/SKF-Year-End-Report-2013 acknowledges the EU Commissioners penalty of SEK 3 Billion loss, however does not provide for other EU Commissioner's contingencies or pending legal matters that may impact on the 2013 final board statement.

The November 2011 announcement by the EU Commissioners investigation into SKF and Others, contained two separate EU departmental investigations for 1. Collusion + 2. Criminal. So far SKF acknowledgement has only been for Collusion 'Price Fixing' no mention of alleged Criminal penalties appear in the 2013 SKF statement. Further the Collusion matter is yet to be finalized, nor has any individual charges against executives for alleged breaches of misappropriation or misbehavior, mentioned

For example, a controller/employee of the petty cash tin stealing $500 could warrant a police charge, therefore a US$ 1 billion crime over a couple of years would involve many employees and more likely a cover-up executive(s) from the main board. The Criminal matter is more complex but nevertheless real, with allegations of fraud from WBA members includes SKF

The Kaydon Group acquisition matter is not finalized as reported by the SKF 2013 statement. Bearingcode confirms there is no Certificate of Approval issued by the US Federal Trade Commission www.ftc.gov and nothing from US Foreign Review Board (CFIUS)http://www.treasury.gov/resource-center/international/Pages/Committee-on-Foreign-Investment-in-US.aspx

The SKF reporting procedure for foreign acquisitions including Kaydon & other corporations to US authorities eg. FTC + CFIUS (elective) is subjective and objectionable especially the non disclosure of Anti-Trust French convictions http://www.autoritedelaconcurrence.fr/user/standard.php?id_rub=128&id_article=177 and the 2 year EU Belgium investigations resulting in last months share of US$ 1 billion Anti Trust penalty. The 2011 EU Belgium SKF investigation is not retrospective, but the matter of SKF's German Anti-Trust approval appear irrelevant as no anti trust violation recorded

16 January 2014

Bearing Corruption Now Global Phenomenon

From December 2013 news re SKF + SCHAEFFLER $1 Billion Corruption EU Penalty; Bearingcode received messages of global support particularly from The World Bank http://www.worldbank.org/ indicating that people no longer believe Corporate statements of Compliance and viewed as just business 'spin' to illegally market products

This latest SKF + SCHAEFFLER corruption is not there first as implied by SKF CEO Tom Johnstone who said: "this should not have happened and is not at all in line with the values we have in SKF". He conveniently forgets the SKF/SCHAEFFLER conviction for same corruption in France http://www.autoritedelaconcurrence.fr/user/standard.php?id_rub=128&id_article=177 and his memory loss confirms global opinion that Corporate statements relating to Compliance + Conduct are labeled as propaganda, scandalous and untrustworthy

Whilst showing contempt towards SKF & SCHAEFFLER; also included is the Japanese Bearing Industry for receiving global notoriety from many convictions of corruption in 2013 amounting to 100's million US$ in penalties. The basic problem is Trust, whether there products are suitable or not especially now the limited amount of bearing manufacturers and continuing to be swallowed by SKF, who based on alleged false sworn statement to US authorities, purchased Kaydon USA. Other concerns arising for Bearing Corporations are future legal proceedings insisting on 'prior criminal statements' meaning chances for redemption or on ethical matters stand little chance of success.

Capacity Development for Anti-Corruption and Transparency 2014 statement by The World Bank

Ensuring accountability and effective management of public resources are some of the basic responsibilities of many governments in the world, especially those in developing countries. In this age of globalization, transparency and effectiveness in public sector management is critical in determining a government's ability to ensure economic competitiveness, good governance, and building capacity in a sustainable manner.

The World Bank has identified corruption as the biggest obstacle to building economic and social capacity. Corruption is especially hard on the poor as they are most affected by economic decline, are most reliant on the provision of public services, and are least capable of bearing extra costs.

Corruption sabotages policies and programs that aim to reduce poverty and build capacity. Attacking corruption is critical to the achievement of the Bank's overarching mission of poverty reduction.


The World Bank Washington DC

14 January 2014

Bearing Mechanical Engineering Courses at CALCE USA

CALCE (Center for Advanced Life Cycle Engineering) Global events

Department of Mechanical Engineering ENME - http://www.enme.umd.edu/
Failure Mechanisms and Reliability Course
University of Maryland, College Park, MD, USA

Prof. Michael Pecht - Instructor (pecht@calce.umd.edu)
Class Time: Monday - 9.00 am - 11.40 am. Spring semester 2014
Venue: Room 2216, J.M. Patterson Building (JMP)

Reliability is the ability of a product or system to perform as intended (without failure and within specified performance limits) for a specified time, in its life-cycle conditions. Knowledge of reliability concepts and principles, as well as risk assessment, mitigation and management strategies prepares engineers to contribute effectively to product life cycle management.

On completion of this course, you will have the fundamental knowledge and skills in reliability as it pertains to the design, manufacture, and use of electrical, mechanical, and electro-mechanical products. Specifically you will have the knowledge needed to:-

  1. Efficiently and cost-effectively design and manufacture reliable products.
  2. Implement derating, uprating, FMMEA, reliability prediction and reliability allocation.
  3. Plan and implement product testing to assess reliability.
  4. Assess the suitability of supply chain members to contribute towards development, manufacturing, distribution & support of reliable products.
  5. Understand process capability and process control.
  6. Analyze degradation, failure, and return data to estimate fundamental reliability parameters.
  7. Conduct root cause analysis.
  8. Address reliability issues associated with warranties, regulatory requirements, and liabilities.

The class will be available online to domestic and international students. If you are not already a student at the University of Maryland, you will need to obtain admission as a non-degree seeking student at the university(http://www.gradschool.umd.edu/prospective_students/non-degree_seeking_advanced_special_student.html).
Please contact Prof. Michael Pecht at mailto:pecht@umd.edu for more information on enrollment.

Contact Information:
Professor Michael Pecht
Room 1103 EGL
Tel: (301) 405-5323
email: mailto:pecht@umd.edu

Prof Michael Pecht is a world renowned reliability engineer and educator. In 2008, he was awarded the highest reliability honor, the IEEE Reliability Society's Lifetime Achievement Award. In 2010, he received the IEEE Exceptional Technical Achievement Award for his reliability contributions in the area of prognostics and systems health management.

Prof Pecht holds a MS in Electrical Engineering, and a MS and PhD in Engineering Mechanics from the University of Wisconsin at Madison. He is a Professional Engineer, an IEEE Fellow, an ASME Fellow, an SAE Fellow and an IMAPS Fellow. He has previously received the European Micro and Nano-Reliability Award for outstanding contributions to reliability research, 3M Research Award for electronics packaging, and the IMAPS William D. Ashman Memorial Achievement Award for his contributions in electronics reliability analysis

He served as chief editor of the IEEE Transactions on Reliability for eight years and on the advisory board of IEEE Spectrum. He is chief editor for Microelectronics Reliability and an associate editor for the IEEE Transactions on Components and Packaging Technology. He is the founder and Director of CALCE (Center for Advanced Life Cycle Engineering) at the University of Maryland, which is funded by over 150 of the world's leading electronics companies at more than US$6M/year. The CALCE Center received the NSF Innovation Award in 2009. Is also a Chair Professor in Mechanical Engineering and a Professor in Applied Mathematics at the University of Maryland.

Has written more than twenty books on product reliability, development, use and supply chain management and over 400 technical articles. Also written a series of books of the industry in China, Korea, Japan and India. He consults for 22 major international electronics companies, providing expertise in strategic planning, design, test, prognostics, IP and risk assessment of products and systems; currently involving CALCE with BEARINGCODE for science development + Conduct root cause analysis in the Global Ball & Roller Bearing industry