For allegedly taking part in a 14-year cartel, a record 2.9 billion euros ($3.2 bln) were fined by EU antitrust regulators on Daimler, Paccar and two other truckmakers.
The companies coordinated on the timing of introducing new emission technologies in 1997 and fixed prices and on passing on costs of those new technologies, the European Commission said. The previous record for a group operating a cartel in the EU was half of the overall fine imposed this time.
While Volkswagen-owned MAN escaped a penalty because it had alerted the cartel to the European Commission, Daimler received the biggest fine at 1.01 billion euros.
"It is not acceptable that MAN, Volvo/Renault, Daimler, Iveco and DAF, which together account for around 9 out of every 10 medium and heavy trucks produced in Europe, were part of a cartel instead of competing with each other," European Competition Commissioner Margrethe Vestager said in a statement.
Iveco, which is part of Italian truck and tractor maker CNH Industrial, was fined 494.61 million euros and Volvo, Sweden's biggest company by revenue, received a 670.45 million euro fine.
A penalty 752.68 million euros was handed over to DAF Trucks, owned by Paccar. In return for a 10 percent cut in the penalties imposed, the four companies admitted wrongdoing. Scania did not settle and will continue to be investigated.
A 1.4 billion euro fine levied against a TV and computer monitor tubes cartel in 2012 was the highest fine prior to the truckmakers' sanction.
Regulators should do more to improve the environment, said campaign group Transport & Environment's director William Todts.
"Truckmakers have to change, but so do regulators; they need to create competition on environmental performance. Introducing fuel economy standards is one key way of doing that," he said.
In order to make their engines compliant with so-called Euro VI standards, which focus on reducing health-threatening nitrogen oxides, truck makers have invested heavily in recent years into technology.
To curb pollution of health-threatening nitrogen oxides more stringent regulation were introduced in stages by the Commission. Since the start of 2014 any new vehicle must comply with Euro VI standards while the so-called Euro 1 standards were unveiled in 1993.
Investment in expensive technologies such as exhaust treatment filters have been forced on the trick makers by the more stringent emissions standards.
Meanwhile, provisions to cover a billion-euro cartel fine imposed by the European Commission have been made by the German truck maker Daimler, the company announced after the news of the fine.
"We can confirm that a settlement has been reached with the EU Commission in the antitrust investigation. The fine that has been imposed (on Daimler) amounts to approximately 1.009 billion euros," Daimler said in a statement. The truck maker adding that it had made provisions to cover the fine.
To cover unidentified legal costs, Daimler had set aside 400 million euros, the company has said last week. Daimler has already set aside 600 million euros to cover the trucks fine.
(Source:www.reuters.com)
The companies coordinated on the timing of introducing new emission technologies in 1997 and fixed prices and on passing on costs of those new technologies, the European Commission said. The previous record for a group operating a cartel in the EU was half of the overall fine imposed this time.
While Volkswagen-owned MAN escaped a penalty because it had alerted the cartel to the European Commission, Daimler received the biggest fine at 1.01 billion euros.
"It is not acceptable that MAN, Volvo/Renault, Daimler, Iveco and DAF, which together account for around 9 out of every 10 medium and heavy trucks produced in Europe, were part of a cartel instead of competing with each other," European Competition Commissioner Margrethe Vestager said in a statement.
Iveco, which is part of Italian truck and tractor maker CNH Industrial, was fined 494.61 million euros and Volvo, Sweden's biggest company by revenue, received a 670.45 million euro fine.
A penalty 752.68 million euros was handed over to DAF Trucks, owned by Paccar. In return for a 10 percent cut in the penalties imposed, the four companies admitted wrongdoing. Scania did not settle and will continue to be investigated.
A 1.4 billion euro fine levied against a TV and computer monitor tubes cartel in 2012 was the highest fine prior to the truckmakers' sanction.
Regulators should do more to improve the environment, said campaign group Transport & Environment's director William Todts.
"Truckmakers have to change, but so do regulators; they need to create competition on environmental performance. Introducing fuel economy standards is one key way of doing that," he said.
In order to make their engines compliant with so-called Euro VI standards, which focus on reducing health-threatening nitrogen oxides, truck makers have invested heavily in recent years into technology.
To curb pollution of health-threatening nitrogen oxides more stringent regulation were introduced in stages by the Commission. Since the start of 2014 any new vehicle must comply with Euro VI standards while the so-called Euro 1 standards were unveiled in 1993.
Investment in expensive technologies such as exhaust treatment filters have been forced on the trick makers by the more stringent emissions standards.
Meanwhile, provisions to cover a billion-euro cartel fine imposed by the European Commission have been made by the German truck maker Daimler, the company announced after the news of the fine.
"We can confirm that a settlement has been reached with the EU Commission in the antitrust investigation. The fine that has been imposed (on Daimler) amounts to approximately 1.009 billion euros," Daimler said in a statement. The truck maker adding that it had made provisions to cover the fine.
To cover unidentified legal costs, Daimler had set aside 400 million euros, the company has said last week. Daimler has already set aside 600 million euros to cover the trucks fine.
(Source:www.reuters.com)
