Secrets Of The Car Manufacturers
Wednesday, 10. October 2018
If you thought that there was ever healthy competition amongst car manufacturers to the benefit of consumers – think again. They work much more closely than you think – often to the detriment of consumers.
In one case six truck manufacturers were found to have colluded in order to coordinate the pricing and release of new technologies needed to meet stricter emissions standards and when the new tech. should be released. The collusion lasted from 1997 – 2011 and ended up with total fines of £3.4 billion being issued against all of the participating manufacturers by European Commission.
The Competition Commissioners carried out a raid on the 6 companies which included Daimler, Daf, Iveco, Volvo and Renault. Scania decided not to settle with the Commission and were fined a year later for being a member of the Cartel. MAN was also part of the Cartel but as they had cooperated and provided evidence against the others they were immune from any fines.
A report in Fleet News revealed that following the investigation into the truck firms, the Commission, working on some inside information, decided to look further afield and found that German manufacturers, i.e. Daimler (Mercedes), BMW and VW Group had colluded to control the rollout of new technology for cleaner cars. Last month it was widely reported that the European Commission was carrying out an investigation into the allegations.
The antitrust investigators have already uncovered proof that the ‘Circle Of 5’ had held meetings to control the introduction of emission-reducing technology. The circle of 5 included Daimler (Mercedes), BMW, VW, Audi and Porsche. VW and Daimler have assisted the investigations and by being whistleblowers have avoided any fines. That certainly doesn’t seem right!
In October offices of several German car makers were raided and papers and other evidence removed. The German press suggested that there was evidence showing that the car makers had colluded to restrict the size of AdBlue tanks in order to reduce cost and space but potentially cause drivers problems.
Original AdBlue tanks were 35 litres that could clean emissions for up to 18,500 miles. In the end, after getting their heads together they ended up fitting tanks with just 8-litre capacity. The commission is currently investigating claims that the companies concerned colluded to limit the development and roll out of Selective Catalytic Reduction (SCR) Systems to reduce harmful Nitrogen Dioxide emissions from passenger cars with diesel engines.
They will also be investigating claims that the German 5 did the same with ‘Otto’ particulate filters (OPT’s) which reduce harmful particulate emissions from passenger cars with petrol engines. The Commission has stated that it aims to establish whether the conduct of Daimler, BMW and VW have violated anti-trust rules that ‘prohibit cartels and restrictive business practices, including agreements to limit or control technical development’.
Having said that the Commission said ‘At this stage, the Commission has no indication that the parties coordinated with each other in relation to the use of illegal defeat devices to cheat regulatory testing’. According to the report, the 5 were discussing many things at the meetings including the speed that convertible roofs should open and close, common quality requirements for car parts – I interpret that as deciding how long cars should last.
They also discussed common testing procedures, car safety developments and even the speed that cruise control will work. All very worrying. In closing, the Commission indicated that manufacturers could possibly put up a defence as the rules allow for cooperation between manufacturers in the name of safety and improved productivity. It begs the question as to what will happen after Brexit with no common oversight by the Commission when it comes to cars being sold in the UK? By Graham Hill
