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Steel News November 22, 2019 01:30:30 PM

Steel Cartel Probe Leads to Imposition of Hefty Fines on Automakers

Paul Ploumis
ScrapMonster Author
Accordingly, BMW has agreed to pay a fine of 28 million euros. Daimler will pay 23.5 million euros.
Steel Cartel Probe Leads to Imposition of Hefty Fines on Automakers

SEATTLE (Scrap Monster): The German federal cartel office has fined three car manufacturers- BMW, Volkswagen and Daimler for allegedly forming cartel to buy steel. The fines total around 100 million euros, sources said.

The office discovered that representatives from the above three companies used to regularly meet steel manufacturers and other companies in the supply chain to decide upon a uniform surcharge when purchasing long steel products, during the period from 2004 to 2013. The companies paid unlawful prices until 2016, it said.

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Accordingly, BMW has agreed to pay a fine of 28 million euros. Daimler will pay 23.5 million euros. Meantime, Volkswagen declined to mention the penalty amount imposed on them, but it welcomed the legal clarity that has emerged out of the cartel enquiry.

The fine imposed by cartel office could be appealed to the Dusseldorf Higher Regional Court.