Industryweek 11406 Steel

Volkswagen, BMW, Daimler Raided Over Steel-Buying Cartel

July 5, 2016
While the auto industry has been targeted by a series of EU price-fixing probes, these have focused more on specific components or products rather than collusion on purchases of raw materials.

In a probe of steel purchasing by the auto industry, Volkswagen AG (IW 1000/7), BMW AG (IW 1000/31), Daimler AG (IW 1000/15) and Robert Bosch GmbH were among six companies raided by Germany’s antitrust regulator in June.

There are indications that antitrust rules may have been violated, and the raids were conducted to investigate the facts, Kay Weidner, spokesman for the Federal Cartel Office, said on July 5. He declined to identify any company.

BMW, VW, Daimler, Bosch and ZF Friedrichshafen AG confirmed that they were raided and said they are supporting the investigations.

Carmakers are one the major pillars of the German economy, and steel is a key component for auto companies. On average, about 900 kilograms (1,984 pounds) of steel is used in every car, according to the World Steel Association.

Germany’s antitrust office, like the European Commission, has the power to levy fines of up to 10% of annual sales, though penalties seldom approach that level.

While the auto industry has been targeted by a series of EU price-fixing probes, these have focused more on specific components or products rather than collusion on purchases of raw materials.

By Karin Matussek

Popular Sponsored Recommendations

Food and Beverage 2024 Trends and Outlook for North America

Oct. 29, 2023
Ready to hear what 200 of your peers said are the top challenges and opportunities in 2024? Don’t fall behind. Uncover actionable insights to better prepare for 2024 in this whitepaper...

Process Mining For Dummies

Nov. 19, 2023
Here it is. Everything you need to know about process mining in a single book, written in the easy-to-understand, hard-to-forget style that ‘For Dummies’ manages so effortlessly...

Gain a competitive edge with real-world lessons on private 5G networks

Nov. 16, 2023
The use of private networks in manufacturing applications is rapidly growing. In this paper, we present valuable insights and lessons learned from the field with the goal of enhancing...

Digitally Transforming Data and Processes With Product Lifecycle Management

Oct. 29, 2023
Manufacturers face increasing challenges in product development as they strive to consistently deliver improved results. Discover how industry leaders are improving time-to-market...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!