The European Union has fined Bayerische Motoren Werke AG (OTC: BMWYY) and Volkswagen AG (OTC: VWAGY) a total of $1 billion for a conspiracy scheme aimed at delaying the adoption of AdBlue emissions-cleaning technology.
What Happened: In their separate agreements, BMW will pay $422.3 million and Volkswagen will pay $595.3 million.
According to the EU, the carmakers collaborated with three other German carmakers, Audi AG (OTC: AUDVF), Daimler AG (OTC: DMLRY), and Porsche Automobil Holding SE (OTC: POAHY), to postpone technology that would cut nitrogen oxide emissions from diesel vehicles.
According to a Politico story, Daimler was granted immunity by the EU for being the first to publicly confess its involvement in the cartel. Audi and Porsche have yet to face any legal action.
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What Else Occurred: “Competition and innovation in automotive pollution management are critical for Europe to achieve our ambitious Green Deal goals,” EU Executive Vice President Margrethe Vestager stated. “This decision demonstrates that we will not hesitate to take action against any cartel activity that jeopardizes this goal.”
Between 2006 and 2014, the automakers were accused of breaking EU antitrust rules, and the first charges against them were filed in April 2019.
Volkswagen said it will consider appealing the verdict, which has a deadline of mid-September for doing so, while BMW said it would comply with the decision because the EU “abandoned most of its antitrust breaches accusations.”
(Photo courtesy of Webandy/Pixabay.)
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