German car in decline
The German automobile industry has formed a cartel since the 1990s, which laid the basis for the diesel crisis, according to the Spiegel weekly, published today. It could be one of the largest cartels in German economic history, involving all the major German automakers: VW, Audi, Porsche, BMW and Daimler, according to the pleading submitted by Volkswagen.
VW, Audi, Porsche, BMW and Daimler “secretly agreed on issues related to the technique, costs, suppliers and even the cleaning of emissions of gases in diesel vehicles.” Volkswagen and Daimler would have submitted documents to the competition authorities in which they “self-denounced” in order to limit the payment of possible fines.
Large deposits would have been too expensive, so German car companies agreed on small deposits in which the amount of AdBlue was at a time insufficient to clean emissions, so it was only possible to cheat. There were also agreements of the five companies, which among them were called “the circle of 5”, related to issues such as convertible covers, the choice of suppliers or the fixing of component costs.
Last year there was already the Volkswagen crisis with the falsification of diesel emissions. This news may mean the definitive end to diesel and perhaps the beginning of the decline of German vehicles. Of course there is a bearish investment opportunity in this companies, because they will be penalized, that’s for sure.
|Volkswagen AG||141,35 €|
|Bayerische Motoren Werke AG||81.19 €|
|Daimler AG||62,58 €|