Looks like I'm wrong about the big Germany Car companies not getting spanked enough!!!
The EU needs cash, they are running out
Germany’s car giants could be hit with multi-billion-euro fines after EU regulators said they colluded to block the development and introduction of clean air technology.
The European Commission has told BMW, Mercedes-Benz owner Daimler and Volkswagen Group that it believes they worked together to delay systems to reduce emissions from petrol and diesel cars.
The development risks a fresh scandal for the automotive industry,
which was rocked in 2015 when VW was found to have fitted “defeat devices” to 11m diesel cars worldwide allowing them to cheat pollution controls.
Issuing a “preliminary view”
two years after dawn raids on the car makers kicked off the investigation, EC regulators said they “participated in a collusive scheme, in breach of competition rules to limit the roll-out and development of emission cleaning technology”.
Collusion took place between 2006 and 2014 within technical meetings between the “circle of five” - BMW, Daimler and VW, including its Audi and Porsche divisions - according to the Commission.
Margrethe Vestager, the competition commissioner, said: “Companies can co-operate in many ways to improve the quality of their products. However, EU competition rules do not allow them to collude on exactly the opposite: not to improve their products, not to compete on quality.
“We are concerned that this is what happened and that Daimler, VW and BMW may have broken EU competition rules.
EU competition commissioner Margrethe Vestager says drivers may have been denied the chance to buy low-emission cars CREDIT: EPA
“As a result, European consumers may have been denied the opportunity to buy cars with the best available technology.”
Regulators are concentrating their investigation on selective catalytic reduction (SCR) systems, which reduce the amount of nitrogen oxide pumped out by diesel cars by injecting does of urea - also known as AdBlue - into the exhaust.
The Commission believes the car companies “co-ordinated their AdBlue dosing strategies, AdBlue tank size and refill ranges between 2006 and 2014 with the common understanding that they thereby limited AdBlue-consumption and exhaust gas cleaning effectiveness”.
It is also looking into whether the car makers worked together to avoid or delay introducing “Otto” particle filters that cut down on harmful particle emissions from exhaust gases of petrol cars.
The decision came in a “statement of objections” that the car companies can now object to. If the EC then finds enough evidence to prove a breach of the rules, the car companies could be fined up to a tenth of their annual global revenues.
VW Group - the largest of the three companies involved - had global sales of €236bn last year, while BMW had €86bn.
Daimler tipped off the Commission to potential collusion, and is likely to escape a financial penalty under the regulator’s whistleblower policy.
Professor David Bailey, an automotive industry expert at Aston University, said that the companies may have worked together having committed to conventional engine designs.
BMW is one of the companies which could be if it is found to have breached EU rules CREDIT: REUTERS
“All three manufacturers were locked in to petrol and diesel engines and saw them as a way of hitting emissions targets,” he said.
“The thinking behind working together could have been that none of them wanted to spend the huge amounts that would be needed to develop electric drive systems when they were so invested in internal combustion power.”
VW Group has committed to spending €44bn into an “electric car offensive” in the wake of the emissions scandal as it rushes to catch up with other manufacturers.
BMW said it “regarded the proceedings as an attempt to equate permissible coordination of industry positions regarding the regulatory framework with unlawful cartel agreements”.
VW said it would “examine the complaints and issue a statement after evaluating the investigation file as part of its co-operation”.
Daimler said it had been co-operating extensively with the Commission and therefore did not expect to be fined.