Volkswagen, Audi, Porsche, BMW, and Mercedes-Benz parent company Daimler are in huge trouble. The carmakers spent years illegally colluding to slow the deployment of cleaner emissions technology. This is according to the European Union, which is giving out the fines to the iconic car companies.
The EU’s executive branch has hit the Volkswagen Group (which, in fact, owns Audi and Porsche) and BMW with a collective $1 billion fine. This was on Thursday for their role in the scheme. Moreover, Volkswagen Group must pay $595 million, while BMW has to pay $442 million. Daimler, however, the company evade a 727 million fine of its. That is because the automaker did reveal the collusion to the regulators.
Volkswagen – Dieselgate Scandal
As described by EU authorities, the scheme is, in fact, separate from the Volkswagen Group’s huge Dieselgate Scandal. This is where the company had installed software on its diesel vehicles that, in fact, did help to fool environmental regulators into believing they were compliant. But, when in reality, they were polluting far more than what is calling the legal limit.
Volkswagen Group had to ultimately pay nearly $40 billion in fines, buybacks, and legal fees because of Dieselgate. Then, Daimler had also installed software on some of its diesel vehicles to cheat emissions tests. Then the company paid billions of dollars in fines. On Thursday, BMW was careful to point, unlike the other companies it was basically caught colluding with, it had not, in fact, cheated emissions testing.
Explosive July 2017 Report
In an explosive July 2017 report from Der Speigel, the existence of this so-called cartel was first revealed. Dating back to the 1990s, this collusion took place around diesel emissions. In fact, shockingly, the companies met in secret working groups to discuss “the technology, costs, suppliers, and even the exhaust gas purification of its diesel vehicles.” In fact, the outlet reported at the time. Thus, at the same time, EU authorities had announced a probe into the allegations. They, in fact, started raiding the automakers’ corporate offices in search of the evidence. Whistleblower status of October of that year was claiming by Daimler.