German Carmakers Fined Almost $1 Billion For Forming A Cartel

The shift of the automobile industry towards green operations has become incumbent for firms that want to stay relevant in the industry. Policies are now being formulated that require these companies to adopt sustainable practices that are friendly to the environment and companies are following these new regulations. However, not all companies are honoring the regulations in true essence and are being honest about their practices. After all, going green and sustainable requires a generous investment of time, money, and labor. A recent reporting of such fraud is attributed to German carmakers.

Major automobile companies based in Germany created a bloc among themselves and this lasted from June 2009 to October 2014. This, basically, was for the purpose of collecting innovative and technical knowledge and information and keeping it a secret. The knowledge was based on green practices and reducing hazardous emissions from their vehicles. If implemented or let out in the open, they would have to change their existing operations which would have costed them extensively.

In order to save their money, they withheld the information. The bloc included famous companies like BMW, Volkswagen, Daimler, Porsche, and Audi. The information was now disclosed by Daimler which led the legislation to fine them. The fine is amounted to be around $1 billion. The biggest share of this fine is required to be paid by Volkswagen Group with around $600 million.

It is still not determined if the Volkswagen Group will pay the fine or appeal the decision that has come from European Union. This antitrust legislation is unprecedented and unique. The organizations involved are still reading between the lines and carefully strategizing their next moves, as reported by Forbes. This unlawful, secretive behavior of these companies has delayed the advent of green technology and set the companies behind in the efforts of going green. One can only hope such an attitude is not repeated for the sake of this world.

Leave a Reply

Your email address will not be published. Required fields are marked *