BMW’s Munich HQ raided by EU officials over emissions ‘plot’
CAR giant BMW has been raided by investigators probing claims that the German manufacturer secretly plotted to dodge diesel emission rules.
It could see the auto firm dragged deeper into a row which is already engulfing its rival Volkswagen, and follows claims that a cartel operated at the highest level of the industry for decades.
Firms found to have broken the rules face multi-billion-euro fines and could even be forced into a mass recall of vehicles.
Watchdog officers visited BMW’s offices in Munich as part of their efforts to uncover the truth, the company said yesterday.
It is claimed that VW, Audi, Porsche, BMW and Daimler have been colluding since the 1990s, with secret rules agreed between themselves to stifle competition and keep costs down at the expense of consumers.
The firms are alleged to have agreed to install smaller-than necessary tanks for a liquid known as AdBlue, which treats toxic diesel exhaust fumes. The fluid reacts with harmful nitrogen oxides found in the emissions and transforms them into water and nitrogen.
Car-makers agreed not to add large tanks to their vehicles, according to German newspaper Der Spiegel – preferring to save space for profitable upgrades such as speaker systems.
If true, it means millions of people were exposed to pollution so that big German companies could maximise their profits.
The scandal has caused huge damage to VW, which in 2015 was accused of installing secret software to cheat tests designed to uncover toxic emissions from its cars.
BMW, which was raided by competition authorities at the European Commission, has staunchly denied trying to beat emissions tests.
The commission refused to name BMW as the company it had targeted, but a spokesman said it ‘can confirm that as of October 16, 2017, its officials carried out an unannounced inspection at the premises of a car manufacturer in Germany’.
The inspection was related to ‘concerns that several German car manufacturers may have violated EU anti-trust rules that prohibit cartels and restrictive business practices’, the commission said.
In a statement, BMW said: ‘The inspection is linked to complaints against five auto companies that were reported in the media last July.’
It confirmed the raids but denied any manipulation of diesel emissions. The claims stem from a Der Spiegel report in July that German car-makers Volkswagen, Audi, Porsche, BMW and Daimler secretly worked together from the 1990s on car development – including how to meet tough diesel emissions criteria. Both buyers and suppliers were damaged by these alleged under-the-table deals.
In July, BMW denied any collusion with industry rivals on emissions from its diesel engines, saying none of its models had been ‘manipulated’.
Wolfsburg-based VW, along with Daimler, was among the first to hand over details of the alleged broader collusion between the five firms to competition authorities, it is claimed. The commission said that Daimler was cooperating and the Mercedes-Benz manufacturer could therefore be offered leniency.
In a separate cartel scandal, Daimler suffered an €880million fine from Brussels last summer for fixing truck prices with competitors. In theory, firms found guilty of colluding could be fined up to 10% of annual revenue.
BMW, in its statement yesterday, said it wanted to make ‘the clear distinction’ between the possible anti-trust violations and the diesel emissions manipulations, ‘which BMW has not been accused of’.
Denies trying to beat tests