EU Faults BMW, Daimler, Volkswagen With Emissions Collusion

Matt Posky
by Matt Posky
eu faults bmw daimler volkswagen with emissions collusion

It might have taken two years of investigative raids and Daimler acting as a whistleblower, but Germany’s Big Three automakers finally stand accused by the European Union of collusion. On Friday, the European Commission claimed that Volkswagen Group, BMW and Daimler broke antitrust rules by acting together to delay the introduction of two emission cleaning systems between 2006 and 2014.

The Commission’s preliminary view is that BMW, Daimler and VW participated in a collusive scheme, breaching the EU’s competition rules by limiting the development and proliferation of new emission cleaning technology for diesel and gasoline-fueled passenger cars sold in the “European Economic Area.” This collusion occurred in the framework of the car manufacturers’ so-called “circle of five” technical meetings — which includes VW Group’s Porsche and Audi.

“Companies can cooperate 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,” said European Competition Commissioner Margrethe Vestager in a statement.

“We are concerned that this is what happened in this case and that Daimler, VW and BMW may have broken EU competition rules. As a result, European consumers may have been denied the opportunity to buy cars with the best available technology. The three car manufacturers now have the opportunity to respond to our findings.”

The EU is most concerned with selective catalytic reduction systems, which reduce nitrogen oxides from diesel emissions, and “Otto” filters that minimize particulate matter emissions from gasoline-powered vehicles.

From the European Commission:

In October 2017, the Commission carried out “inspections” of BMW, Daimler, VW and Audi in Germany, as part of its initial inquiries into possible collusion between car manufacturers on the technological development of passenger cars. The Commission opened an in-depth investigation in September 2018.

A Statement of Objections is a formal step in Commission investigations into suspected violations of EU antitrust rules. The Commission informs the parties concerned in writing of the objections raised against them. The parties can then examine the documents in the Commission’s investigation file, reply in writing and request an oral hearing to present their comments on the case before representatives of the Commission and national competition authorities.

The EU said it could impose a fine of up to 10 percent of a company’s annual turnover if the Commission concludes there is sufficient evidence of an infringement of its rules.

Daimler is likely very surprised by this, as it has repeatedly stated its status as a whistleblower would absolve it of any legal ramifications. While VW has made no official comment, BMW said it is still investigating the claims against it. However, it also adopted a more confrontational stance, saying, “The BMW Group regards these proceedings as an attempt to equate permissible coordination of industry positions regarding the regulatory framework with unlawful cartel agreements.”

[Image: LanaElcova/Shutterstock]

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  • Zipper69 At the heart of GM’s resistance to improving the safety of its fuel systems was a cost benefit analysis done by Edward Ivey which concluded that it was not cost effective for GM to spend more than $2.20 per vehicle to prevent a fire death. When deposed about his cost benefit analysis, Mr. Ivey was asked whether he could identify a more hazardous location for the fuel tank on a GM pickup than outside the frame. Mr. Ivey responded, “Well yes…You could put in on the front bumper.”
  • 28-Cars-Later I'll offer this, offer a registration for limited use and exempt it from all inspection. The Commonwealth of GFY for the most part is Dante's Inferno for the auto enthusiast however they oddly will allow an antique registration with limited use and complete exemption from their administrative stupidity but it must be 25 years old (which ironically are the cars which probably should be inspected). Given the dystopia being built around us, it should be fairly simply to set a mileage limitation and enforce a mileage check then bin the rest of it if one agrees to the terms of the registration. For the most part odometer data started being stored in the ECU after OBDII, so it should be plug and play to do such a thing - this is literally what they are doing now for their emissions chicanery.
  • Probert For around $15 you can have a professional check important safety areas - seems like a bargain. It pointed to a rear brake problem on my motorcycle. It has probably saved a lot of lives. But, like going to a dentist, no-one could say it is something they look forward to. (Well maybe a few - it takes all kinds...)
  • VoGhost ICE is so dangerous.
  • Akear Back as early as 2014 Ford was building some pretty decent vehicles. The Ford Fusion was getting good reviews and selling around 300,000 annually. The Mark MKZ was also the top selling US luxury car at the time. My Ford Fusion is approaching the 200,000 mile mark, while current Fords blow gaskets at 40,000 miles.
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