The auto mafia
31/7/17 13:58![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
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talkpoliticsA secret automobile cartel between Volkswagen, Audi, Porsche, BMW and Daimler has been alleged by a recent report that's threatening to engulf these companies in a huge scandal. The German car manufacturers conspired for two decades to have a unified policy in all areas of future development: from their diesel and gas engines, to brake systems, to the gear-box, etc. It is alleged that they secretly coordinated between themselves about which suppliers they would use, what the price of the car parts they produced would be, the way they would process the waste gases from the diesel engines, and the prices of their new car models.
The scandal could possibly turn out to be related to the earlier one about the diesel engines, if the investigation finds out that there were also secret agreements about using too small AdBlue carbamide tanks. The substance has the capability to extract nitrate oxides from waste gases. If all allegations are proven right, that would mean there was indeed a cartel agreement that helped these corporations artificially maintain high prices for the customers, and low prices for their sub-contractors.
Der Spiegel reports that a year ago VW themselves signaled the free competition committee on suspicions of "actions violating the anti-trust legislation". Daimler also notified the committee, which practically means they incriminated themselves. A step that wouldn't make sense at a first glance, had it not automatically prevented them from being prosecuted for their transgression.
In recent years, Daimler at least partially withdrew from the secret negotiations of the large German car manufacturers, SDZ reports, citing inside informants. This happened after the scandal about the cargo auto cartel broke out in 2011. Back then, the EU imposed a juicy penalty on Daimler (1.1 billion euro). It is said that Daimler has gradually distanced themselves from such cartel negotiations with other companies.
There's an investigation going on in Brussels right now, and the German anti-trust authorities are also looking into possible agreements between their car manufacturers. For the time being, the companies involved still deny all allegations. The Daimler CEO has called them speculative, BMW categorically denies the accusation that their carbamide tanks are too small which could guarantee sufficient processing of the waste gases from the Euro-6-Diesel series. BMW insists their cars are not subject to any illicit manipulations and meet all legal regulations - including their diesel cars.
If proven true though, these allegations would deliver a severe blow on the public trust in the German car manufacturers. The indignation in Germany is huge right now. Politicians from all corners of the spectrum are calling for thorough investigations and possibly, harsh penalties. Martin Schulz, the SDP leader is speaking of "monstrous fraud at the expense of the customers and sub-contractors". The HDS parliamentary leader Volker Kauder has urged the automobile industry to take urgent measures to clean the stain from its image, because if the accusations are proven correct, this would mean the biggest entities in the German heavy industry have bent the rules - and this, in a society that takes integrity very, very seriously.
The scandal could possibly turn out to be related to the earlier one about the diesel engines, if the investigation finds out that there were also secret agreements about using too small AdBlue carbamide tanks. The substance has the capability to extract nitrate oxides from waste gases. If all allegations are proven right, that would mean there was indeed a cartel agreement that helped these corporations artificially maintain high prices for the customers, and low prices for their sub-contractors.
Der Spiegel reports that a year ago VW themselves signaled the free competition committee on suspicions of "actions violating the anti-trust legislation". Daimler also notified the committee, which practically means they incriminated themselves. A step that wouldn't make sense at a first glance, had it not automatically prevented them from being prosecuted for their transgression.
In recent years, Daimler at least partially withdrew from the secret negotiations of the large German car manufacturers, SDZ reports, citing inside informants. This happened after the scandal about the cargo auto cartel broke out in 2011. Back then, the EU imposed a juicy penalty on Daimler (1.1 billion euro). It is said that Daimler has gradually distanced themselves from such cartel negotiations with other companies.
There's an investigation going on in Brussels right now, and the German anti-trust authorities are also looking into possible agreements between their car manufacturers. For the time being, the companies involved still deny all allegations. The Daimler CEO has called them speculative, BMW categorically denies the accusation that their carbamide tanks are too small which could guarantee sufficient processing of the waste gases from the Euro-6-Diesel series. BMW insists their cars are not subject to any illicit manipulations and meet all legal regulations - including their diesel cars.
If proven true though, these allegations would deliver a severe blow on the public trust in the German car manufacturers. The indignation in Germany is huge right now. Politicians from all corners of the spectrum are calling for thorough investigations and possibly, harsh penalties. Martin Schulz, the SDP leader is speaking of "monstrous fraud at the expense of the customers and sub-contractors". The HDS parliamentary leader Volker Kauder has urged the automobile industry to take urgent measures to clean the stain from its image, because if the accusations are proven correct, this would mean the biggest entities in the German heavy industry have bent the rules - and this, in a society that takes integrity very, very seriously.
(no subject)
Date: 3/8/17 00:49 (UTC)Capitalism is a crock of antisocial shit until this is corrected.