San Francisco Chronicle

BMW dismisses collusion claims over emissions

- By Jack Ewing Jack Ewing is a New York Times writer.

FRANKFURT, Germany — BMW, responding Sunday to claims it formed a cartel with Daimler and Volkswagen to hold down the prices of crucial technology, denied that the German carmakers had agreed among themselves to install emissions equipment that was inadequate to do the job.

The statement by BMW was the first attempt at damage control by the carmakers since the European Commission said Saturday that it was investigat­ing accusation­s of illegal collusion among them.

The German carmakers, who dominate the global market for luxury cars, can hardly afford another blow to their reputation­s. They were under fire after several government studies showed that diesel cars, once promoted as environmen­tally friendly, frequently pollute much more than advertised.

Adding to the pressure, the accusation­s against the automakers showed signs Sunday of becoming an issue in coming national elections. Chancellor Angela Merkel and her transport minister, Alexander Dobrindt, faced increasing criticism that they had been overly accommodat­ing to the carmakers and had enabled wrongdoing by them.

Martin Schulz, the chancellor candidate for the left-leaning Social Democrats, said that if the allegation­s proved true, “it would be a gigantic fraud against customers,” according to news reports.

Oliver Krischer, a leading member of the Green Party, told the German news agency DPA that the allegation­s “take the emissions scandal into a new dimension.”

Such harsh criticism of the auto industry is unusual in Germany, and it illustrate­s the degree to which public opinion is turning against the carmakers. Motor vehicles are the country’s biggest export, and Volkswagen, Daimler and BMW are among Germany’s largest employers.

In its statement Sunday, BMW said discussion­s with the other carmakers had been about how to ensure that customers would be able to buy refills of a chemical needed for pollution equipment in diesel vehicles. The chemical, a urea solution sold commercial­ly as AdBlue, is sprayed into the exhaust to neutralize harmful nitrogen oxides.

German magazine Der Spiegel reported Friday that the carmakers agreed in 2006 to limit the size of the tanks used to hold AdBlue to save space in cars. Volkswagen has admitted that its vehicles were programmed to ration doses of AdBlue, leading to excess emissions. Der Spiegel said it had seen documents that were part of an antitrust investigat­ion.

 ?? Matthias Schrader / Associated Press 2009 ?? The BMW logo is seen on the rear of a car in front of the company’s headquarte­rs in Munich. BMW denies that German carmakers agreed to install inadequate emissions equipment.
Matthias Schrader / Associated Press 2009 The BMW logo is seen on the rear of a car in front of the company’s headquarte­rs in Munich. BMW denies that German carmakers agreed to install inadequate emissions equipment.

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