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Volkswagen shrugs off cartel allegations

Cartel allegations on top of emissions scandal

1 - 1 of 1 posts

robert99 robert99 Sweden Posts: 1360
1 28 Jul 2017
Volkswagen has defended its record after allegations that it teamed up with other German car giants to breach EU cartel rules.

VW said it was normal for manufacturers to exchange technical information to speed up innovation.

However, it declined to comment on specific allegations that five German carmakers colluded on price and technology.

Daimler has also called the allegations speculative.

EU and German anti-trust regulators are looking at allegations that BMW, Daimler and VW, including its subsidiaries Audi and Porsche, collaborated for decades on many aspects of development and production, disadvantaging customers and suppliers.

German car makers face suits in North America

The "big three" of the German car industry – Volkswagen, Daimler AG, and BMW – are also struggling with accusations of collusion. According to reports in German media, the car makers made deals to fix prices and disadvantage foreign competitors. The companies also allegedly forged joint strategies on technologies, costs, suppliers and even emissions from diesel engines.

On Thursday, consumer groups in Canada and the US filed suits against the car manufacturers. Their collusion harmed buyers because "they paid more for German luxury vehicles than they otherwise would have," the US plaintiffs said.

Porsche hit by recall over emissions cheating
German Transport Minister Alexander Dobrindt said on Thursday that emissions-cheating software had been found in Porsche's Cayenne Diesel 3.0 TDI model and that 22,000 vehicles would have to be recalled.

Speaking to reporters in Berlin, Dobrindt said that German authorities had ordered an obligatory recall, as was the norm in such situations. Moreover, all cars of this type produced but not yet sold would be denied permits until the software was changed.

Dobrindt also said the cheating was made possible through the so-called "warm-up strategy," whose true purpose was to make the car comply with emissions requirements. "We consider this to be an illegal emissions control device," he added.

The software is able to set off during emissions testing but not during regular driving. Tests have shown that once the car was confronted with small bends or a slope it switched modes and emissions were higher.

Volkswagen, Audi, Skoda class actions
In Australia -

The Volkswagen, Audi and Skoda class actions are scheduled for a stage one trial in the Federal Court of Australia commencing on 30 October 2017.