Germany's car manufacturers: another scandal?
Discussion
Apologies for the pay walled link but I hadn't seen this covered elsewhere and I'm not sure how to do the quote thing (my first topic). Long and interesting article in today's times.
https://www.thetimes.co.uk/edition/comment/why-mad...
In summary,
Germans have been shaken by the emergence of a letter from Volkswagen to the EU competition authorities alleging the existence of a price-fixing and component-coordinating cartel of all three powerful carmakers. This has allegedly been running for two decades to the detriment of consumers, suppliers and the environment".
According to the Volkswagen letter, dated July 4, 2016, Daimler, BMW and the Volkswagen brands of VW, Audi and Porsche have been “co-ordinating the development of their vehicles, costs, suppliers and markets for many years, at least since the 1990s.”
There were five broad areas of co-ordination, according to Der Spiegel magazine, which first revealed the details. Known by the carmakers as the “five circles” they covered drive, body, chassis, electrics and complete vehicle. Within this structure there were more than 60 working groups focusing on different components. “We are assuming that over 1,000 meetings have taken place over the last five years,” VW reportedly confessed in its letter.
This combined with "diesel-gate" puts a serious dent in the reputation of German industry, as well as any hope for German investment and innovation in cleaner diesel. Will also be interesting to see how hard the EU competition authorities come down on this.
https://www.thetimes.co.uk/edition/comment/why-mad...
In summary,
Germans have been shaken by the emergence of a letter from Volkswagen to the EU competition authorities alleging the existence of a price-fixing and component-coordinating cartel of all three powerful carmakers. This has allegedly been running for two decades to the detriment of consumers, suppliers and the environment".
According to the Volkswagen letter, dated July 4, 2016, Daimler, BMW and the Volkswagen brands of VW, Audi and Porsche have been “co-ordinating the development of their vehicles, costs, suppliers and markets for many years, at least since the 1990s.”
There were five broad areas of co-ordination, according to Der Spiegel magazine, which first revealed the details. Known by the carmakers as the “five circles” they covered drive, body, chassis, electrics and complete vehicle. Within this structure there were more than 60 working groups focusing on different components. “We are assuming that over 1,000 meetings have taken place over the last five years,” VW reportedly confessed in its letter.
This combined with "diesel-gate" puts a serious dent in the reputation of German industry, as well as any hope for German investment and innovation in cleaner diesel. Will also be interesting to see how hard the EU competition authorities come down on this.
In case you hadn't guessed, the German car industry is as bent as a Uri Geller teaspoon.
There is almost no area where they haven't been caught out. Diesel, emissions, pricing, you name it.
The Germans are doing a great job of sweeping the endless wave of scandals under the carpet. A masterclass in reputation management.
There is almost no area where they haven't been caught out. Diesel, emissions, pricing, you name it.
The Germans are doing a great job of sweeping the endless wave of scandals under the carpet. A masterclass in reputation management.
cardigankid said:
Why shouldn't they coordinate components? They are competing with the Japanese. Do you think they don't.
As for prices, prove it.
BMW make Porsche's bodies. Shock Horror Probe.
And on dieselgate, I doubt if any major car manufacturer in the world wasn't involved.
Agree there's some coordination on research and innovation...BUT the length of time this has gone on, agreement to limit size of Adblue and fuel tanks across models, potential price fixing and creative use of EU internal market rules to the exclusion of French, Swedish, UK manufacturers...this will run and run. Interesting the German media reporting there will be increased focus after the September election.As for prices, prove it.
BMW make Porsche's bodies. Shock Horror Probe.
And on dieselgate, I doubt if any major car manufacturer in the world wasn't involved.
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