EU antitrust regulators say probing possible German car cartel

BRUSSELS: EU antitrust regulators are investigating allegations of a cartel among a group of German carmakers, the European Commission said on Saturday, a measure that could result in hefty fines for the companies.
The Commission and its German counterpart were tipped off about the possible cartel, the EU competition authority said.
“The European Commission and the Bundeskartellamt have received information on this matter, which is currently being assessed by the Commission. It is premature at this stage to speculate further,” the EU executive said, without giving more details.

German magazine Der Spiegel reported on Friday that VW, BMW, Audi and Porsche may have colluded to fix the prices of diesel emissions treatment systems using industry committees.
Sixty industry committees made up of about 200 employees discussed vehicle development, brakes, petrol and diesel engines, clutches and transmissions as well as exhaust treatment systems, Der Spiegel reported, citing a letter sent to cartel authorities.
It said Volkswagen admitted to possible anti-competitive behavior in a letter to cartel authorities on July 4. Volkswagen and Daimler declined to comment on Friday and BMW was not available to comment.
Companies found guilty of breaching EU cartel rules face fines of as much as 10 percent of their global turnover.
The car industry has been hit with billion-euro fines on both sides of the Atlantic in recent years for cartels related to various parts such as lighting systems, engine coolers and bearings.
Warning against diesel ban in cities
Meanwhile, it emerged on Saturday that the EU’s commissioner for industry has warned the bloc’s transport ministers against a ban on diesel cars in European cities.
Such a move could hamper automakers’ ability to invest in zero-emission vehicles, cautioned Commissioner Elzbieta Bienkowska.
In a letter seen by Reuters, Bienkowska said there would be no benefit in a collapse of the market for diesel cars and that the short-term focus should be on forcing automakers to bring dangerous nitrogen oxide emissions into line with EU regulations.
“While I am convinced that we should rapidly head for zero-emission vehicles in Europe, policymakers and industry cannot have an interest in a rapid collapse of the diesel market in Europe as a result of local driving bans,” Bienkowska said.
“It would only deprive the industry of necessary funds to invest in zero-emissions vehicles,” she said in the letter, dated July 17.
Germany’s three major automakers have invested heavily in diesel technology, which offers more efficient fuel burn and lower carbon dioxide emissions than gasoline-powered cars.
But since Volkswagen admitted in 2015 to cheating on US emissions tests, worries about vehicle pollution have left the entire auto industry under scrutiny. A particular concern is emissions by diesel cars of nitrogen oxide, which is blamed for causing respiratory diseases.
In the letter, Bienkowska told ministers she was concerned that the latest emissions violations at Audi and Porsche were discovered by prosecutors and not Germany’s vehicle and transport authorities.
Bienkowska’s letter also called for all cars with excessively high levels of nitrogen oxide emissions to be taken off European roads, but said automakers should act on a voluntary basis. The commissioner did raise the prospect of an EU testing agency if national regulators failed to spot more emissions-test cheats.
Munich, home to BMW, has become the latest German city to consider banning some diesel vehicles. Environmental groups say diesel bans in cities can cut nitrogen oxide emissions and force automakers to design cleaner vehicles.
Experts who have seen the letter to ministers say the commissioner appeared to be bowing to automakers’ demands.
“Her letter contained some important statements that we believe show the industry’s lobbyists have scored a big win,” Bernstein analyst Max Warburton said in a report.
“They have likely argued that castigating or banning diesel would harm the industry’s earnings and employees, harm efforts to reduce carbon dioxide and harm owners of current vehicles.”

source reutres