It’s been nearly a year since President Donald Trump and European Commission President Jean-Claude Juncker kissed and negotiated a temporary truce aimed at buying the United States and the EU time to renegotiate their positions without fear of new tariffs.
Unfortunately, it seems everyone had better things to do following the smooch. (Read More…)
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. (Read More…)
The European Commission is said to be investigating several automotive companies over possible antitrust violations relating to the sale of auto parts. According to Germany’s Der Spiegel, Renault, Nissan, PSA, Jaguar Land Rover and Fiat Chrysler Automobiles have all been placed under government scrutiny for possible price fixing. The report claims the manufacturers may have colluded to elevate the value of certain auto parts by as much as 25 percent.
Assuming the report is accurate, that would make this the EU’s second major automotive cartel investigation in the last two years. (Read More…)
Roughly one year ago, German automakers were confronted with a crisis. Following Volkswagen’s diesel emissions fiasco, European antitrust regulators became suspicious that BMW, Daimler, and VW Group were involved in a longstanding automotive cartel that cooperated on decisions regarding technical issues, development, supplier management, and illegal price fixing. Investigators were also concerned manufacturers worked together to standardize diesel treatment fluid (AdBlue) reservoirs to reduce exhaust emissions, then encouraged each other to cheat on emissions tests when they were deemed insufficient.
This resulted in a series of raids and then almost a full year of silence on the matter. However, if Volkswagen’s dieselgate has taught us anything, it’s that German authorities prefer a snail’s pace when pursuing a criminal probe.
Apparently unsatisfied with the initial findings, the European Commission opened an in-depth and official investigation on Tuesday against the “circle of five,” a group that includes Audi, VW, Porsche, Daimler, and BMW. The quintet is accused of holding meetings where they colluded to limit the development and application of certain emissions control systems for cars sold in Europe. There’s also an accusation of price fixing. (Read More…)
The prevailing narrative seems to be that the United States lags behind Europe in addressing issues like fuel economy and emissions. U.S. regulatory standards are seen as not as rigorous as those used in the European Union. Cars sold in the European market get better gas/diesel mileage and put out less supposedly harmful carbon dioxide and other products of combustion. Now, the Economist is reporting that an environmental group is claiming that the Euro standards are a bit of a sham because the system in Europe allows automakers to game the testing procedures, resulting in poorer real-world performance than that indicated by testing.
After months of investigation regarding the German government’s support of Daimler’s continued use of R134a — in violation of a law mandating use of refrigerants “with a global warming potential no more than 150 times that of carbon dioxide” — the European Commission has given Germany two months to comply with the law, or be fined and taken to court.
Though the European Environment Agency proclaimed new cars sold throughout the European Union in 2013 as being 4 percent cleaner than those sold in 2012, an environmentalist group says testing loopholes are the cause behind the results.
An automotive coolant Daimler claims is too dangerous to use in their vehicles, despite the warnings from the European Union to cease usage of an older coolant considered harmful to the environment, was found to be safe according to a report made by EU scientists.
The legal struggle has heated up between Daimler and the European Commission over the automaker’s continued use of R134a air conditioning refrigerant, which has been banned by the EU, in some of its models. “We are opening a procedure against Germany. This is not a final decision by the Commission,” EU industry commissioner Antonio Tajani said.
Germany has two months to respond. The procedure for adjudicating the violation of EU rules is a multi-step process which normally takes months. The German government is backing Mercedes-Benz and the dispute could ultimately end up in the European Court of Justice, with the possibility of heavy fines and the recall of about 130,000 Mercedes-Benz A-Class, B class, CLA and SL cars. (Read More…)
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