Car giant ‘cartel’ probed by Brussels

BMW, Volkswagen and Mercedes are being investigated by the EU over claims they conspired to delay the development of technology designed to reduce car emissions.

The German car giants are suspected of forming a ‘cartel’ which ‘denied consumers the opportunity to buy less polluting cars’.

The European Commission has dubbed the group ‘the circle of five’, including Mercedes-owner Daimler as well as BMW and VW’s Volkswagen, Porsche and Audi brands.

The commission said it would examine whether the group agreed to avoid competing against each other in the race to install ‘clean emission devices’ in diesel and petrol cars sold throughout Europe.

Emissions-cutting devices are expensive and push up the cost of building cars, meaning there would have been a financial incentive for manufacturers to drag their heels.

The European commission said if car makers did conspire with each other, this would amount to a breach of the EU’s anti-trust rules which outlaw cartels.

Commissioner Margrethe Vestager added: ‘If proven, this collusion may have denied consumers the opportunity to buy less polluting cars, despite the technology being available to the manufacturers.’

VW, Daimler and BMW said they would continue to co-operate with the commission’s investigation but could not comment on the ongoing case.