World’s biggest car makers raided in anti-competition probe
some of the world’s biggest car makers may be colluding to cut the costs of waste management, a new inquiry in Europe suggests.
Some of the world’s biggest car makers had their European offices raided overnight, as part of a broad investigation into antitrust and cartel behaviour within the automotive industry.
The inquiry is being carried out by the European Union and Britain’s Competition and Markets Authority (CMA), and relates to the disposal of waste products.
While neither body has yet confirmed specific targets of the investigation, Renault, Stellantis-subsidiary Opel,
BMW, Mercedes-Benz, Ford, and Ferrari have confirmed cooperation according to Reuters. Volkswagen and its subsidiary Audi declined to comment when approached by the outlet, however it’s likely multiple other manufacturers have also been contacted by authorities.
“This conduct relates to arrangements for recycling old or written-off vehicles, specifically cars and vans, which are known in the industry as ‘end-of-life vehicles’ or ELVs,” the CMA said in an offical statement.
“ELVs are vehicles that are categorised as waste, generally due to age-related failure or accident, and regulation requires these vehicles to be disposed of in a sustainable way.
“Vehicle manufactures must offer their customers a free service for recycling ELVs, a service manufacturers often outsource to third parties.”
It is unclear what is specifically being alleged in relation to waste disposal, however authorities may believe manufacturers are failing to provide the recycling services mandated by law or colluding to cut costs during disposal.
Drive has reached out to the Australian Consumer and Competition Commission (ACCC) to find out if similar investigations are underway locally. This story will be updated if more information becomes available.
Last year Volkswagen, Porsche, Audi, Mercedes-Benz, and BMW were fined for colluding to forgo expensive emission-reducing technology development between 2009 and 2014.
Approximately €
2.2 billion ($AU4.4 billion) worth of fines have been issued to manufacturers in the past decade for anti-competitive practices. Companies found guilty of cartel conduct in the European Union face fines equalling up to 10 per cent of their annual global turnover. The revelation of potential anti-competitive practices in the industry comes as car makers hike prices to record highs, blaming supply chain inefficiencies and shortages.The post World’s biggest car makers raided in anti-competition probe appeared first on Drive.