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German Auto Giants Daimler, BMW And Volkswagen Group Fined With €100 million For Manipulating Steel Prices
Competition watchdog has fined Volkswagen Group, BMW And Mercedes parent “Daimler” with €100 million for manipulating steel prices. VW will pay €48.7 million, while BMW and Daimler will pay €28 million and €23.5 million respectively.
Germany’s competition watchdog, Bundeskartellamt, has fined Daimler, Volkswagen Group and BMW with €100 million (₦40 billion) for forming a cartel that manipulated steel prices for 9 good years.
The steel type, known as “long steel,” is a crucial material used in making parts like crankshafts, steering rods and gearwheels.
According to the results of the extensive investigation that was launched three years ago, representatives of the three German automakers met regularly from 2004 to 2013 with steel companies to set steel prices. This move had an effect on the steel market at least until 2016.
The three companies have accepted the fine. Volkswagen, Germany’s biggest carmaker, is expected to pay €48.7 million. BMW and Mercedes parent, Daimler, will pay €28 million and €23.5 million respectively.
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The main targets were Auto giants Volkswagen Group, BMW and Daimler, as well as Bosch and ZF component suppliers.
In July 2018, Bundeskartellamt ordered six stainless steel producers to pay €205 million for price fixing.
A separate investigation targeting several producers for “flat steel” price rigging is still ongoing. Media reports suggest fines in that case could amount to €500 million.
Last year, preliminary findings by the European Commission found BMW, Daimler and the Volkswagen Group guilty of colluding to restrict the use of emissions-reducing technology.
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