German Carmakers Face Investigation Over Alleged Diesel Cartel
Competition authorities are examining claims that BMW, Daimler and Volkswagen brands coordinated diesel emissions technology and pricing for over two decades.
German competition authorities have launched an investigation into BMW, Daimler and the Volkswagen Group, including Audi and Porsche, following allegations that the companies colluded for years on diesel emissions technology and pricing.
The inquiry follows reports in the German press that the carmakers held secret working groups as far back as the 1990s. According to Der Spiegel, the companies are suspected of coordinating technical standards and costs for diesel emissions treatment systems, including AdBlue, a urea-based additive used to reduce nitrogen oxide emissions. Such coordination could constitute illegal cartel behaviour under European competition law.
Alleged scope of coordination
Reports suggest that the carmakers held more than 60 meetings involving over 200 employees to discuss a wide range of technical and commercial topics. These included not only emissions treatment systems but also vehicle development, brakes, engines, transmissions and clutches. The main focus of the current investigation is on the companies’ approach to diesel emissions after the Dieselgate scandal exposed widespread manipulation of test results.
Volkswagen is understood to have notified competition authorities of the meetings as part of a response to a separate investigation into possible cartel activity in the steel industry. This disclosure reportedly included details of discussions on setting the cost of AdBlue and other emissions control technologies, allegedly with the aim of minimising costs and limiting competition.
Context: Diesel recalls and emissions probes
The cartel investigation comes after a series of large-scale diesel recalls by German manufacturers. Daimler announced a voluntary recall of three million vehicles for software updates, while Audi recalled 850,000 cars to address emissions issues. These moves followed the Volkswagen Dieselgate scandal, which revealed the use of defeat devices to manipulate emissions results. For further background on the scale of recalls, seeGerman Carmakers to Recall 630,000 Diesels Over Emissions Software.
Next steps for authorities and manufacturers
The investigation is at an early stage. German and European Union regulators are reviewing the evidence provided and will determine whether formal charges are warranted. BMW, Daimler and Volkswagen have not commented in detail on the allegations at this stage. The case adds to the ongoing scrutiny of diesel technology and emissions compliance within the sector.
