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2 Wayne St. U.J. Bus. L. 1 (2019)

handle is hein.journals/wsujbl2 and id is 1 raw text is: 







  AUTO   INDUSTRY COMPLIANCE: WILL THE TONE AT THE ToP
        GO  TONE   DEAF  IN THE  WAKE OF DEREGULATION?

                       Susan Diehl and Monica  Batsford *

                               INTRODUCTION

       Over the past decade, corporate executives have focused attention on
building robust  compliance  programs  that both  deter wrongdoing   and
enhance reputation. The automotive industry has been particularly focused
on  compliance,  following its heavily  publicized compliance  breaches,
especially over the past decade. First, there were the recall debacles by the
Original Equipment   Manufacturers  (OEMs).1        The recalls involving
General Motors  Company   (GM),  Toyota Motor  Corporation (Toyota),
Takata  Corporation  (Takata)  and Volkswagen Group (VW) were
notable, not just because of the safety issues that impacted consumers,2 but
rather because these companies  covered up  those safety issues for years,
which  ultimately led to significant fines from the Department of Justice
(DOJ).3 Next  came the automotive suppliers' compliance breaches where,
between  2012 and 2017, the DOJ's Antitrust Division (DOJ-AD)  reached
deals with or  prosecuted over forty-eight corporate automotive  supplier
defendants  and  sixty-five individuals as part of a global price fixing
investigation.4 The DOJ has collected more than $2.9 billion in criminal fines
against such defendants,5 many of who are still involved in multi-district civil
litigation in the Eastern District of Michigan. To date, the defendants'


* Ms. Diehl is a partner at Trinitas Advisors where she helps businesses and their leaders
and teams align for success. She was formerly the General Counsel of both a Japanese
automotive supplier and building materials company, both of whom were subject to DOJ
investigations; she is also currently Part-Time Faculty at Wayne State University Law
School. Ms. Batsford is a recent Wayne State University Law School alumna, past
Publication Editor of the Wayne State University Journal of Business Law, and is currently
employed as an associate attorney at Saurbier Law Firm, P.C.
1 STOUT Risius Ross, INC., ROAD MAP FOR A NEW ERA, AUTOMOTIVE WARRANTY &
RECALL REPORT 4 (2015),
https://www.autosafety.org/sites/default/files/imce stafftuploads/RECALLS.STOUT_.RIS
IUS.2015AutomotiveWarrantyRecallReport.pdf.
2 The 5 Deadliest Defects in History, AUTOINSURANCE.ORG (2018),
https://www.autoinsurance.org/5-deadliest-vehicle-defects/.
3 STOUT RiSiuS ROSS, INC., supra n.1, at 5.
4 MORGAN, LEWIS & BOCKIUS LLP, 2017 MID-YEAR GLOBAL CARTEL ENFORCEMENT
REPORT 27 (2017), https://www.morganlewis.com/documents/m/documents/cartel/2017-
mid-year-cartel-report-july2017.pdf.
5 Id.


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