Volkswagen & BMW fined $1 billion for 'emissions cartel'

The commission did not fine Daimler, stating that the company was the one that revealed the 'cartel'.

The European Commission has fined the Volkswagen Group and BMW € 875,189,000 (US$ 1 billion).

As per the European Commission, BMW, Daimler and the Volkswagen Group (including Audi & Porsche) colluded to hold back the development of technology, which could have reduced NOx emission from diesel vehicles.

The three carmakers are said to have breached the EU anti-trust rules by agreeing to avoid competing on technical development in the area of nitrogen oxide cleaning. The carmakers have to have acknowledged their involvement and agreed to settle the case.

BMW was fined US$ 442 million, while the Volkswagen Group was charged US$ 595 million. The commission, however, did not fine Daimler, stating that the company was the one that revealed the 'cartel'.

According to the commission, the three carmakers held regular meetings between 2009 and 2014. The discussions were said to be centred around the development of Selective Catalytic Reduction (SCR) technology, which reduces harmful NOx emissions from diesel vehicles.

The three companies agreed to avoid competition on cleaning better than what the law demanded at that time, despite the technology being available.

Source:CNN