Referring to what most of the world's automotive press called a "raid," the European Union (EU) announced that on October 16, it conducted an "unannounced inspection" of BMW headquarters in Munich. BMW confirmed that representatives of the EU's antitrust office had inspected the premises at that time. The EU explained that the visit was related to potential antitrust rule violations alleged against BMW and other German automakers and whether or not they constituted an illegal cartel. German government agencies are also investigating the antitrust charges
On Monday, October 23, the New York Times reported that offices of German automakers Daimler and the Volkswagen Group were also "inspected" by EU and German antitrust investigators.
The antitrust allegations against BMW, Daimler, Volkswagen, Audi, and Porsche address whether the meetings held by those companies were to fix prices of certain parts and technologies, especially as related to diesel and other technologies.
BMW made a statement in response to the inspection, saying, "The BMW Group wishes to make clear the distinction between potential violations of antitrust law on the one hand and illegal manipulation of exhaust gas treatment on the other. The BMW Group has not been accused of the latter."
All diesel vehicle production has come under increased scrutiny in the last two years since Volkswagen was discovered to have cheated on diesel emission vehicle testing. BMW's diesel vehicles have undergone extensive testing in a number of countries, including the U.S., and so far, no evidence of misconduct has been uncovered.
In the antitrust investigation, the EU and German agencies are examining the companies to determine if they illegally discussed parts, prices, suppliers, and standards that would give them an advantage over other companies, especially foreign carmakers. According to the EU, any companies found to have violated the antitrust laws could receive "very high" fines. For example, last year, the EU commission fined Daimler about $1,180,000,000 for its involvement with a truck cartel.
While this matter may not affect the type of vehicles offered here by the German carmakers, if wrongdoing is proved, it will likely affect their bottom lines.‑Scott Blazey
[Photo courtesy of BMW AG.]
