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Scania fined $1 billion for truckmakers cartel

Published 09/27/2017, 06:35 AM
© Reuters. European Competition Commissioner Margrethe Vestager holds a news conference announcing the EU regulators fined Scania 880 million euros for taking part in a truckmakers cartel in Brussels
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By Foo Yun Chee

BRUSSELS (Reuters) - EU regulators fined Scania 880 million euros ($1 billion) on Wednesday for taking part in a truckmakers cartel which has already cost four of its peers a combined 2.9 billion euro penalty.

The European Commission said Scania, owned by German carmaker Volkswagen (DE:VOWG_p), colluded for 14 years with the other cartel members on truck pricing and on passing on the costs of new technologies to meet stricter emission rules.

In July, Volkswagen's MAN, Daimler (DE:DAIGn), Volvo (ST:VOLVb), Iveco (MI:CNHI) and DAF (O:PCAR) admitted to taking part in the cartel in return for a 10 percent cut in their fines. Scania did not settle.

Scania's fine is the second highest after Daimler's 1 billion euro penalty. MAN escaped a fine as it blew the whistle on the cartel. The companies made more than nine out of every 10 medium and heavy trucks sold in Europe.

"Instead of colluding on pricing, the truck manufacturers should have been competing against each other - also on environmental improvements," European Competition Commissioner Margrethe Vestager said.

© Reuters. European Competition Commissioner Margrethe Vestager holds a news conference announcing the EU regulators fined Scania 880 million euros for taking part in a truckmakers cartel in Brussels

The EU competition enforcer said its investigation did not reveal any links between the cartel and allegations of carmakers cheating on emissions control testing.

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