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Leading European truckmakers operated cartel for 14 years: FT
(Reuters) - Top European truckmakers operated a cartel for 14 years to delay the progress of emissions-reducing technology, the Financial Times reported, citing leaked documents in a European Commission investigation. The newspaper said that one of the documents states that DAF Trucks, Daimler, Iveco, Scania, Volvo and MAN 'agreed the timing and price increase levels for the introduction of new emission technologies' to comply with Euro 3 rules on nitrogen oxide and other emissions in 2000. (on.ft.com/1vanmz5) A spokeswoman for the European Commission, which announced last month it had sent charges to truckmakers it accused of a long-running and serious price-fixing cartel, said it would not comment on the leaked document. Known as a statement of objections, it lists the accusations against the firms. Daimler, Volvo and Iveco parent CNH Industrial all confirmed receipt last month of the statements of objections, together with Volkswagen-controlled Scania and MAN. European Union officials raided several truckmakers in 2011 to start an antitrust investigation. It had found collusion dating back to January 1997 and ending in January 2011, the Financial Times said. 'All competitors participated directly and throughout the full duration in all the constituent elements of the cartel,' the FT quoted one of the leaked documents as saying. Companies can be fined up to 10 percent of their annual revenue if the Commission concludes that there is sufficient evidence of an infringement of EU rules barring cartels and the abuse of market dominance. Germany's Daimler said last week it was setting aside an additional 600 million euros ($740 million) to cover potential costs related to the antitrust investigation by the European Commission. (Reporting by Ankush Sharma in Bangalore; additional reporting by Alastair Macdonald in Brussels; Editing by Grant McCool and Mark Potter)
December 23, 2014 4:36 pm Top truckmakers operated cartel for 14 years, says EU Lorry and exhaust©iStock Europe’s biggest truckmakers operated a cartel over 14 years going back to 1997 that held up the progress of emissions-reducing technology, according to leaked documents seen by the Financial Times. EU officials carried out raids on several truckmakers in 2011, kicking off an antitrust investigation that led to a charge sheet being sent last month to the main manufacturers. A statement of objections document states the scale and longevity of collusion alleged to have taken place between January 1997 and January 2011. It involved DAF, Daimler, Iveco, Scania, Volvo, which also owns Renault trucks, and MAN, the whistleblower in the case. “All competitors participated directly and throughout the full duration in all the constituent elements of the cartel,” the document said. Officials had previously indicated only that the alleged cartel was “very old”, involved a “large number” of companies and peaked about a decade ago. The document also states the truckmakers “agreed the timing and price increase levels for the introduction of new emission technologies” to comply with tougher Euro 3 rules on nitrogen oxide and other emissions in 2000. EU regulations are essential to driving down these pollutants, which can cause respiratory problems. Each wave of standards brings in advanced technology that allows truckmakers to command a higher price for their vehicles and, according to some in the industry, maintain a high barrier of entry. The six truckmakers have a market share of close to 100 per cent and there are no US or Asian rivals present in Europe. Details of the alleged cartel surfaced after truckmakers won a partial delay on new weight and dimension measures for heavy goods vehicles, arguing that long lead times needed to be taken into account. Manufacturers have set aside cash to deal with any potential fines, which could be up to 10 per cent of annual sales. Daimler last week said that, having reviewed the statement of objections, it would increase an undisclosed provision made in 2011 to €600m. Volvo last month said it had made a provision of SKr3.7bn ($490m) related to the antitrust inquiry. “Settlements will be extremely difficult here,” said Margrethe Vestager, Europe’s new competition commissioner, speaking at a press conference to announce the statement of objections last month. “If the case is proven, we have a very serious infringement of our antitrust rules.” The truckmakers said they were unable to comment on the investigation, which is still under way. Emissions and fuel economy are sensitive issues in road transport. While truckmakers have been meeting regulations on harmful pollutants, critics say they have made limited advances in fuel economy and carbon dioxide emissions, even though this represents a third of the cost consideration for hauliers. According to a European Commission strategy document published in May, CO2 emissions from heavy goods trucks rose by about 36 per cent between 1990 and 2010. This was a result of greater freight demand and what the commission called “stable” fuel consumption, despite the potential for a 35 per cent improvement in fuel performance using the latest technologies. The latest news and analysis on the world’s changing climate and the political moves afoot to tackle the problem The six truckmakers contacted by the FT rejected those claims, saying that advances had been made even while reducing nitrogen oxides and other pollutants, which requires special filters and exhaust recovery systems that sap fuel economy. Acea, the European automotive manufacturers’ trade body, said: “European commercial vehicle manufacturers are world leaders in fuel efficiency, with fuel consumption down 60 per cent since 1965.” It added that truckmakers were on track to further reduce fuel consumption from new vehicles by 20 per cent between 2005 and 2020. Heavy goods vehicles are tested for emissions compliance. But unlike passenger cars, trucks are not tested for their fuel economy performance, nor is their efficiency advertised in the same way. The industry is developing a simulation tool, known as Vecto, that uses real-world emissions data and allows customers to compare models. |
Andy Sharman, Motor Industry Correspondent
Wed Dec 24, 2014 4:26am EST |
The text being discussed is available at http://www.reuters.com/article/2014/12/24/us-eu-trucks-cartel-idUSKBN0K20H320141224 |
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