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Emissions: VW, BMW and Daimler agreed on the introduction of AdBlue technology. Photo: Chris Ratcliffe / Bloomberg
Aoife Weiss
Volkswagen (VW) and BMW have agreed to pay fines of 875 million euros from the European Union for collusion that, according to regulators, will lead to the introduction of AdBlue technology have braked for emission control.
VW will have to pay around 502 million euros and BMW will pay almost 373 million euros, the European Commission said in an email statement on Thursday. The fine for BMW is well below its original provision of 1.4 billion euros. BMW made a U-turn in May, agreeing to settle the investigation after previously announcing it would fight the EU.
A settlement means companies are agreeing to the EU’s fees in exchange for a lower fine and opting for the Generally agree not to challenge the EU decision in court.
Daimler avoided a fine for being the first to inform the EU about the cartel, but all three companies could now face claims for damages from customers.
The automakers « have the technology to reduce harmful emissions beyond the legally required level of EU emissions standards, » said Margrethe Vestager, EU antitrust chief, in the statement. « But they avoided » competing, « to harness the full potential of this technology ».The fines come when German automakers begin to emerge from a pandemic that has restricted car sales. Ms. Vestager has shown little sympathy for a diesel fraud scandal that the « auto industry has taken ».
The EU announced that the three automakers have reached an agreement on the AdBlue technology, which reduces urea emissions adds to reduce harmful nitrogen oxide emissions from diesel vehicles. The companies agreed on AdBlue tank sizes and ranges as well as a « common understanding » of AdBlue consumption.
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The exchange of economically sensitive information « removed the uncertainty about your future market behavior » and restricted competition for product features useful to customers. The EU announced that the behavior lasted from 2009 to 2014.
VW had « fully cooperated » with the regulatory authorities, it said in an email statement. The EU fines punish conversations « that were never implemented and therefore customers were never harmed », it said.
« The high fines that were imposed in this case underscore the need for more comprehensive practical guidance », such as Companies can cooperate without risking antitrust violations. Existing regulations « no longer meet the complex challenges of the automotive industry, especially in the area of necessary technical cooperation. »
Volkswagen will consider an appeal before a deadline in mid-September, it said, adding that the regulatory authorities in China, South Korea and Turkey would also look into potential AdBlue collusions.
BMW said the EU had dropped allegations of joint development of software to restrict AdBlue dosing and efforts to contain a particulate filter for gasoline direct injection engines. According to a company announcement, this led to a lower fine.
According to BMW, there is no evidence in the EU communication of any agreements on the use of shut-off devices to manipulate emissions tests.
The EU case is the latest regulatory scandal for an industry that often tests the patience of the authorities with emissions problems.
VW is still dealing with the consequences of the so-called Dieselgate affair, which cost the company up to 32 billion euros.
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