European officials probe claims of huge German car cartel

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Bloomberg  / July 21, 2017

The European Commission and the German cartel office, or Bundeskartellamt, are investigating claims that Germany’s major carmakers may have been operating a cartel since the 1990s, colluding on everything from vehicle development and engines, to suppliers and diesel emissions systems.

A report in Der Spiegel magazine this week said the biggest car manufacturers -- Daimler AG, BMW AG and Volkswagen AG as well as VW’s Audi and Porsche brands -- may have colluded for decades on technology.

According to the Spiegel report, the five German car brands met starting in the 1990s to coordinate activities related to their vehicle technology, costs, suppliers and strategy as well as emissions controls in diesel engines.

Their discussions involved more than 200 employees in 60 working groups in areas including auto development, gasoline and diesel motors, brakes and transmissions.

Talks may have also involved the size of tanks for AdBlue fluid for diesel autos, which is at the heart of the emissions case.

The Spiegel article said that one aim of the collusion was to obstruct competition, with the carmakers agreeing on costs for components or technical details such as convertible roofs.

According to the cartel office, the raid took place exactly a year ago and targeted six carmakers and suppliers. Der Spiegel said that the follow-up probe was essentially a by-product of that raid, which involved 50 employees of the cartel authority, aided by local police and regional law-enforcement officers.

Related reading - https://www.bigmacktrucks.com/topic/46111-truckmakers-get-record-324-billion-eu-fine-for-cartel/#comment-372456

 

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U.S. Reviewing Allegations German Carmakers Colluded

Bloomberg  /  July 25, 2017

U.S. Justice Department officials are looking into allegations that German automakers colluded on technology, strategy and parts to gain an advantage over rivals, according to a person familiar with the matter, though there’s no indication that the department has opened a formal investigation.

The European Commission and Germany’s cartel office said Saturday they have received information about possible collusion and are studying the matter.

That acknowledgment came after Der Spiegel reported last week that the biggest German car manufacturers -- Daimler, BMW and Volkswagen, as well as VW’s Audi and Porsche brands -- may have colluded for decades.

According to the Spiegel report, the five German car brands met starting in the 1990s to coordinate activities related to their vehicle technology, costs, suppliers and strategy as well as emissions controls in diesel engines. The discussions involved more than 200 employees in 60 working groups in areas including auto development, gasoline and diesel motors, brakes and transmissions. Talks may have also involved the size of tanks for AdBlue fluid for diesel autos, which is at the heart of the emissions-cheating case in which VW pleaded guilty earlier this year, the magazine reported.

The Spiegel article said that one aim of the collusion was to obstruct competition, with the carmakers agreeing on costs for components and technical details such as convertible roofs.