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| Price-Fixing Inquiry Moves From BMW to Daimler and Volkswagen | Price-Fixing Inquiry Moves From BMW to Daimler and Volkswagen |
| (5 months later) | |
| BRUSSELS — European Union investigators searched the offices of the German automakers Daimler and Volkswagen on Monday — the second such action in recent days as part of an inquiry into allegations of illegal collusion by the country’s car giants. | BRUSSELS — European Union investigators searched the offices of the German automakers Daimler and Volkswagen on Monday — the second such action in recent days as part of an inquiry into allegations of illegal collusion by the country’s car giants. |
| Regulators are looking into whether Germany’s three major vehicle manufacturers — BMW, Daimler and Volkswagen — worked together to fix the prices of various vehicle equipment, including design aspects that help control emissions. The searches came as the companies face a backlash over their efforts to evade rules on diesel emissions. | Regulators are looking into whether Germany’s three major vehicle manufacturers — BMW, Daimler and Volkswagen — worked together to fix the prices of various vehicle equipment, including design aspects that help control emissions. The searches came as the companies face a backlash over their efforts to evade rules on diesel emissions. |
| The European Commission, the European Union’s executive arm, said in a brief statement that the “inspections” were aimed at enforcing rules that “prohibit cartels and restrictive business practices.” The commission did not name the companies involved, but Daimler and Volkswagen said their offices had been searched. | The European Commission, the European Union’s executive arm, said in a brief statement that the “inspections” were aimed at enforcing rules that “prohibit cartels and restrictive business practices.” The commission did not name the companies involved, but Daimler and Volkswagen said their offices had been searched. |
| As in the enforcement action against BMW last week, the commission said the inspections, which also involved German antitrust officials, were a preliminary step in the investigation. | As in the enforcement action against BMW last week, the commission said the inspections, which also involved German antitrust officials, were a preliminary step in the investigation. |
| German carmakers have for years met routinely to discuss technical standards for components. But such discussions might be illegal if, for example, the manufacturers agreed among themselves to limit competition in certain areas, such as the effectiveness of emissions systems. | German carmakers have for years met routinely to discuss technical standards for components. But such discussions might be illegal if, for example, the manufacturers agreed among themselves to limit competition in certain areas, such as the effectiveness of emissions systems. |
| The investigation into the possible collusion is one of several challenges facing Germany’s vehicle manufacturers as they grapple with the fallout from the diesel emissions scandal. | The investigation into the possible collusion is one of several challenges facing Germany’s vehicle manufacturers as they grapple with the fallout from the diesel emissions scandal. |
| Two years ago, Volkswagen admitted that it had used software to illegally evade diesel emissions in the United States, and studies by multiple European governments have since found that BMW, Daimler and Volkswagen took advantage of European Union loopholes to weaken a car’s emissions controls outside of test environments. | Two years ago, Volkswagen admitted that it had used software to illegally evade diesel emissions in the United States, and studies by multiple European governments have since found that BMW, Daimler and Volkswagen took advantage of European Union loopholes to weaken a car’s emissions controls outside of test environments. |
| Even as it faced new scrutiny in Europe, Volkswagen moved a step closer to putting the emissions scandal behind it in the United States, as the automaker received approval from federal and California regulators for its proposed repairs to reduce harmful emissions from 38,000 diesel-powered sport utility vehicles. | Even as it faced new scrutiny in Europe, Volkswagen moved a step closer to putting the emissions scandal behind it in the United States, as the automaker received approval from federal and California regulators for its proposed repairs to reduce harmful emissions from 38,000 diesel-powered sport utility vehicles. |
| The approval, issued jointly on Friday by the Environmental Protection Agency and California Air Resources Board and disclosed Monday, will spare Volkswagen from the expense of buying back the affected models. | The approval, issued jointly on Friday by the Environmental Protection Agency and California Air Resources Board and disclosed Monday, will spare Volkswagen from the expense of buying back the affected models. |
| A federal judge had approved a settlement requiring Volkswagen to spend about $1.2 billion to fix or buy back nearly 80,000 vehicles equipped with 3.0-liter diesel engines. The latest fix covers 2013-15 Audi Q7 models, as well as 2013-16 versions of the Porsche Cayenne and Volkswagen Touareg. The company did not give details about the fix — a software modification — or the potential effect on performance or mileage. | |
| In addition, owners will receive roughly $7,000 to $16,000 each, depending on the vehicle’s year and model. | In addition, owners will receive roughly $7,000 to $16,000 each, depending on the vehicle’s year and model. |
| Volkswagen is awaiting approval for proposed repairs to passenger cars with the same engine. Last year, it reached a separate settlement requiring it to buy back 475,000 vehicles with 2.0-liter engines that emit unsafe levels of pollutants. | Volkswagen is awaiting approval for proposed repairs to passenger cars with the same engine. Last year, it reached a separate settlement requiring it to buy back 475,000 vehicles with 2.0-liter engines that emit unsafe levels of pollutants. |
| That settlement was part of about $25 billion in fines and other costs that Volkswagen has agreed to pay to address claims brought by consumers, regulators and states in connection with the company’s scheme to evade federal emissions rules with so-called defeat devices in diesel vehicles. | That settlement was part of about $25 billion in fines and other costs that Volkswagen has agreed to pay to address claims brought by consumers, regulators and states in connection with the company’s scheme to evade federal emissions rules with so-called defeat devices in diesel vehicles. |
| On the European investigation, Volkswagen confirmed that it was the subject of the inspections in Germany on Monday, saying the regulators had examined documents at its offices in Wolfsburg and at offices of its Audi subsidiary in Ingolstadt. | On the European investigation, Volkswagen confirmed that it was the subject of the inspections in Germany on Monday, saying the regulators had examined documents at its offices in Wolfsburg and at offices of its Audi subsidiary in Ingolstadt. |
| Daimler, whose brands include Mercedes-Benz, said that an “announced inspection” had taken place, and that the company was “cooperating fully.” | Daimler, whose brands include Mercedes-Benz, said that an “announced inspection” had taken place, and that the company was “cooperating fully.” |
| Last week, Daimler said it had offered to provide evidence about a suspected conspiracy to antitrust investigators in return for lower penalties. Last year, in connection with a cartel operated by truck manufacturers, the European Commission fined Daimler more than 1 billion euros, or $1.18 billion. | Last week, Daimler said it had offered to provide evidence about a suspected conspiracy to antitrust investigators in return for lower penalties. Last year, in connection with a cartel operated by truck manufacturers, the European Commission fined Daimler more than 1 billion euros, or $1.18 billion. |