875 million cartel fine against Volkswagen and BMW

The German car manufacturers have been fined 875 million euros by the EU Commission. BMW, Volkswagen, Audi, Porsche and Daimler are affected.

According to the EU Competition Commissioner, automakers have acted like a cartel when it comes to exhaust gas cleaning technology for diesel vehicles. In doing so, they violated EU competition law.

BMW has to shell out 373 million euros, Volkswagen – with Audi and Porsche – 502 million euros. Only Daimler, also part of the cartel, was let off the hook because the company had disclosed the existence of the cartel from the start.

First cartel penalty for technical agreements

For the first time, the EU Competition Commission has imposed a cartel fine for technical agreements.

EU Competition Commissioner Margrethe Vestager said: “Millions of new diesel vehicles worth billions of euros are sold in Europe every year. And many more are already in use. Not only those who use these cars, but all citizens must be able to trust that the automakers have each other compete. Even when it comes to reducing the emissions of their vehicles. But these companies have not met this expectation. ”

For the NGO “Transport & Environment” one thing is certain: one cannot expect car manufacturers to put health and climate above profit, as director Julia Poliscanova explains.

“I think you can say that you can’t trust the automakers when it comes to cleaning their cars’ emissions. First they cheated on emissions tests and then they refused to take those dirty cars off the streets. And now it turns out that they actually agreed to delay the introduction of cleaner vehicles, “says Julia Poliscanova.

NGOs call for emission-free engines by 2035

“We are of the opinion that only a binding European target to make all cars emission-free by 2035 can ensure that we get away from environmentally harmful engines in time to have clean air for all Europeans and to avoid climate catastrophe.”

In a statement, BMW said that the allegations were “exaggerated and unjustified” from the start of the cartel proceedings. Therefore, with the application for the application of the leniency program, the applicant pleaded not guilty.

Reports of a possible cartel caused a stir in the summer of 2017 – almost two years after the VW diesel scandal became known. At times there was talk of an impending second emissions scandal. The car manufacturers initially protested against the allegation of having made illegal agreements. The commission did not find any indications that the manufacturers had made agreements on the use of the defeat devices, which were notorious in the diesel scandal, to manipulate emissions tests.