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Report on Business EU charges BMW, Daimler and Volkswagen with colluding to block emissions-cleaning technology

BMW and Volkswagen face possible hefty fines after EU antitrust regulators on Friday charged the German carmakers and whistle-blower Daimler with colluding to block the rollout of clean emissions technology.

In the latest pollution scandal to hit the auto industry, the European Commission said it had sent what it calls statements of objections to the companies setting out the charges, nearly two years after carrying out dawn raids at their premises.

It said the collusion occurred between 2006 to 2014 and took place during technical meetings held by the “circle of five,” namely BMW, Daimler and Volkswagen Group’s VW, Audi and Porsche.

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

The EU focused on selective catalytic reduction systems, which reduce nitrogen oxides from diesel car emissions, and “Otto” particulate filters that reduce particulate matter emissions from gasoline-powered cars.

EU enforcers said their case was not related to other investigations into the use of illegal defeat devices to cheat emissions tests and possible violations of environmental laws.

Daimler, which alerted the collusion to the regulator, reiterated it did not expect to be fined as a result of its information.

Volkswagen said it would examine the EU accusations before making any further comment.

BMW said the EU was trying to equate permissible co-ordination of industry positions regarding the regulatory framework with unlawful cartel deals.

EU fines could go as high as 10 per cent of a company’s global turnover. Volkswagen shares were trading down 0.8 per cent in late session trading, Daimler was 0.6 per cent lower, while BMW was up 0.8 per cent in a flat European auto index.

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Bas Eickhout, a European Parliament lawmaker from the Green Party, said the carmakers’ actions put a brake on innovation.

The commission did not say why the companies might have wanted to block emissions cleaning technology, but new systems can often add to costs for both manufacturers and consumers.

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