Motor industry in more hot water as carmakers suspected of colluding on pricing and technology development

As if carmakers aren’t already in enough trouble these past few years, reports are now surfacing that Volkswagen, BMW and Daimler may have been secretly colluding and potentially breaking anti-competition laws.

It’s thought that the three huge carmakers may have been getting together to collude on pricing their cars and discussing technological developments.

It’s another blow to consumers if this turns out to be true.

After the VW emissions scandal broke out in the autumn of 2015, authorities have swooped in to investigate several carmakers over their emissions technologies. As regulators continue to be concerned that emissions irregularities are rife within the motor industry, several of the big automotive players have been investigated and accused of cheating.

Now, authorities are looking in to suspected anti-competitive behaviour as well.

Volkswagen “admitted” potential breaches of competition law

German magazine Der Spiegel reports that Volkswagen has already stepped forward and admitted possibly engaging in illegal anti-competitive behaviour. VW reached out to competition regulators via a letter explaining that they were part of secret meetings where members would discuss technology used in their cars, how much they were charging, what suppliers they used, and other useful business information.

VW identified that it attended these ‘working group’ meetings with BMW and Daimler. The working groups began in 1990s and, so far, around 1,000 meetings have reportedly taken place. The discussions would include car development topics, including the technology that was eventually used for car emissions.

Adblue discussed

Some of the meetings discussed the use of Adblue; a solution comprised of urea and ionised water that neutralises harmful nitrous oxide pollution. Unfortunately, the large tanks needed to hold the solution have often been very expensive. Incidentally, this is believed to be one of the reasons as to why VW utilised the so-called “defeat devices” in the first place; to save on the cost of Adblue technology.

If these new allegations are true, Volkswagen could be at the centre of two of the largest ever motor scandals in history, as anti-competitive behaviour will not be taken lightly. This alleged anti-competitive cartel may now be fully investigated, and authorities may have to make appropriate sanctions.

Daimler, parent of luxury brand Mercedes, has also submitted a letter to anti-competition authorities admitting their part in this new scandal.

It’s time these companies are properly held accountable for their actions, and we must fight to ensure they compensate any victims of their behaviour as well. Owners of VW Group vehicles fitted with the so-called “defeat devices” are entitled to claim for compensation, in our view. Any behaviour that serves only to unfairly inflate the profits of companies at the expense of their consumers should be punished.

Image Credit: https://www.cleanenergywire.org