EU probes carmakers for possible collusion over emissions controls

An investigation has been launched by European Union's antitrust regulators into possible collusion by German car manufacturers BMW, Daimler and VW to avoid competing with each other on lowering car emissions.

The European Commission, the EU's executive arm, has opened an in-depth investigation to assess whether the companies worked together to avoid competition on the development and roll-out of technology to clean the emissions of petrol and diesel passenger cars.

Information has been been passed to the EC, it revealed on Tuesday, indicating that the "circle of five", made up of BMW, Daimler and VW's three major operating companies, Volkswagen, Audi and Porsche, may have "participated in meetings where they discussed inter alia the development and deployment of technologies to limit harmful car exhaust emissions".

Competition commissioner Margrethe Vestager said: "If proven, this collusion may have denied consumers the opportunity to buy less polluting cars, despite the technology being available to the manufacturers."

Last October, EC inspectors visited the premises of BMW, Daimler, Volkswagen and Audi in Germany as part of its initial inquiries and is assessing whether the companies colluded to limit the development and roll-out of certain catalytic reduction systems to reduce harmful nitrogen oxides emissions from passenger cars with diesel engines and 'Otto' particulate filters to reduce harmful particulate matter emissions from passenger cars with petrol engines.

There are, as yet, "no indications that the parties coordinated with each other in relation to the use of illegal defeat devices to cheat regulatory testing", the body stressed, noting that the opening of a formal investigation does not prejudge its outcome.

While EU antitrust rules allow technical cooperation aimed at improving product quality, this investigation concerns specific cooperation that is "suspected to have aimed at limiting the technical development or preventing the roll-out of technical devices".

The automotive industry does not have the best record on cartels, with the EC having previously fined suppliers of automotive bearings, wire harnesses in cars, flexible foam used in car seats, parking heaters in cars and trucks, alternators and starters, air conditioning and engine cooling systems, lighting systems, occupant safety systems, braking systems and spark plugs.