EUROPEAN COMMISSION FINES TRUCK PRODUCERS RECORD €2.93B
The European Commission found that truck makers MAN, Volvo/Renault, Daimler, Iveco, and DAF broke EU antitrust rules by colluding for 14 years on truck pricing and on passing on the costs of compliance with stricter emission rules. The Commission has imposed a record fine of €2,926,499,000 (US$3.22 billion). MAN was not fined as it revealed the existence of the cartel to the Commission. All companies acknowledged their involvement and agreed to settle the case.The decision relates specifically to the market for the manufacturing of medium (weighing between 6 to 16 tons) and heavy trucks (weighing over 16 tons). The Commission’s investigation revealed that MAN, Volvo/Renault, Daimler, Iveco and DAF had engaged in a cartel.
The infringement covered the entire EEA and lasted 14 years, from 1997 until 2011, when the Commission carried out unannounced inspections of the firms. Between 1997 and 2004, meetings were held at senior manager level, sometimes at the margins of trade fairs or other events. This was complemented by phone conversations. From 2004 onwards, the cartel was organized via the truck producers’ German subsidiaries, with participants generally exchanging information electronically.
Over the 14 years the discussions between the companies covered the same topics, namely the respective “gross list” price increases, timing for the introduction of new emissions technologies and the passing on to customers of the costs for the emissions technologies.
The decision follows the sending of a Statement of Objections to the trucks producers in November 2014. In the context of this investigation, proceedings were also opened with regard to Scania. Scania is not covered by this settlement decision and therefore the investigation will continue under the standard (non-settlement) cartel procedure for this company.
Scania said that in light of recent developments in the investigation,and in accordance with relevant accounting principles and a prudent approach, it is making a SEK 3.8 billion (US$441 million) provision in order to cover possible fines.
The collusion identified by the Commission concerned the new emission technologies required by the Euro III to Euro VI environmental standards, specifically coordination on timing and coordination on passing on of costs of emission technologies for trucks compliant with newly introduced emissions standards. The collusion was not aimed at avoiding or manipulating compliance with the new emission standards.