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July 25, 2017 02:00 pm

German Automakers Formed a Secret Cartel In the '90s To Collude On Diesel Emissions, Says Report

An anonymous reader quotes a report from The Verge: Last week, Der Spiegel published an explosive report alleging that the major German automakers formed a secret cartel in the 1990s to collude on diesel emissions. These companies, including Volkswagen, Audi, BMW, Porsche, and Daimler, met in secret working groups to discuss "the technology, costs, suppliers, and even the exhaust gas purification of its diesel vehicles," the German weekly reported. The meetings were disclosed to German competition officials in letters from VW and Daimler and viewed by Der Spiegel. The secret meetings "laid the basis" for the 2015 diesel emission cheating scandal, in which VW was caught installing secret software in more than half a million vehicles sold in the US that it used to fool exhaust emissions tests. The admission of cheating ultimately cost the automaker tens of billions of dollars in fines and legal fees, making it one of the most expensive corporate scandals in history. Years earlier, VW participated in dozens of secret meetings with its competitors, involving over 200 employees in up to 60 working groups, on how to meet increasingly tough emissions criteria in diesel vehicles. The automakers may have colluded to fix prices of a diesel emission treatment called AdBlue through these working groups, Der Spiegel says. Specifically, VW (which owns Porsche and Audi), Daimler (which owns Mercedes-Benz and Smart), and BMW allegedly agreed to use AdBlue tanks that were too small. AdBlue is a liquid solution used to counteract a vehicle's emissions.

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