The truck cartel closes its last chapter Scania receives a fine of 880 million euros

By:   Fedora Atjeh Fedora Atjeh   |   9/28/2017 11:55:00 PM
The truck cartel closes its last chapter Scania receives a fine of 880 million euros

It seems that 2017 is the year of the cartels, on the small screen, and in the reality of the automotive industry. To the scandal that rocked Germany a few months ago in which the big ones of the industry like Volkswagen, BMW and Audi were accused of forming a cartel there by the 90, they are united the trucks.

Scania, belonging to the Volkswagen group, has been fined by the European Commission for a sum of 880 million euros for having participated in a cartel for 14 years with five other giants of the trucks: MAN, Daimler, Iveco, DAF and Volvo. In 2016, all but Scania admitted to cheating, which refused to cooperate with the Executive.

The big price hike practiced by the six truck giants for 14 years has just claimed the missing victim. Since 2011 the European Commission has been investigating price coordination between MAN, Volvo, Scania, Iveco, Daimler and DAF. The tip came from MAN, which was exempt from the fine of 1.2 billion for denouncing the bad practices.

The truck cartel closes its last chapter Scania receives a fine of 880 million euros

The worst part was taken by Daimler, who received in the summer of 2016 a penalty of 1.008 million, followed by the recently announced fine of 880 million euros to Scania; DAF 752.7 million; 670.5 million to Volvo-Renault and 494 million to Iveco, according to El País. However, having recognized the fraud (almost obligatory after the tip of MAN) served to reduce their sanctions by 10%. All but Scania, of course, did not cooperate in the investigation.

According to European Competition Commissioner Margrethe Vestager, Scania was responsible for organizing the meetings. The first pricing meeting took place in January 1997 in Brussels, and from there the six manufacturers held frequent meetings with Lo Soprano.

The organization coordinated the basic factory prices of its medium and heavy trucks according to the country of sale, and how could it be otherwise, they also altered the control of polluting emissions.

During the meetings, a surcharge of up to 10% was agreed on the sale of trucks to companies and self-employed.

The truck cartel closes its last chapter Scania receives a fine of 880 million euros

The impact of these measures reached Biblical magnitudes, as the six manufacturers are responsible for nine out of 10 trucks sold in Europe and circulating in the European Economic Area.

As reported by Reuters, Vestager has stated that "instead of pricing, truck manufacturers should have competed with each other, also in environmental improvements."

Scania for its part continues to deny the allegations and has stated that it will appeal the decision of the European Commission in the courts. The first highest penalty for a cartel, after the giants of the trucks were received, was for a TV and computer monitor manufacturer in 2012, which resulted in a fine of more than 1.4 billion euros.

According to Vestager told a press conference, those involved in the alleged cartel formed by the major German car manufacturers are cooperating in the investigation, and there is no evidence of links between the two investigations.

Show Comments