Skip to content. | Skip to navigation

Personal tools
Sections
You are here: Home Breaking news EU fines VW's Scania EUR 880m for trucks cartel

EU fines VW's Scania EUR 880m for trucks cartel

— filed under: , ,
EU fines VW's Scania EUR 880m for trucks cartel

Margrethe Vestager - Photo © European Union 2017

(BRUSSELS) - The EU Commission fined Scania EUR 880 million Wednesday for breaking EU antitrust rules by taking part in a truck pricing cartel and passing on new technologies costs to meet stricter emission rules.

The decision marks the end of the Commission's investigation into cartel it says lasted some 14 years. "This cartel affected very substantial numbers of road hauliers in Europe, since Scania and the other truck manufacturers in the cartel produce more than 9 out of every 10 medium and heavy trucks sold in Europe," said the EU's Competition Commissioner Margrethe Vestager: "These trucks account for around three quarters of inland transport of goods in Europe and play a vital role in the European economy. Instead of colluding on pricing, the truck manufacturers should have been competing against each other - also on environmental improvements."

In July 2016, the Commission reached a settlement decision concerning the trucks cartel with MAN, DAF, Daimler, Iveco and Volvo/Renault. However, Scania decided not to settle the case with the Commission, unlike the other five participants in the trucks cartel.

Because of this, the Commission says its investigation against Scania was carried out 'under the standard cartel procedure'.

Today's decision relates specifically to the market for the manufacturing of medium (weighing between 6 to 16 tons) and heavy trucks (weighing over 16 tons).

The Commission says its investigation revealed that Scania, as a producer of heavy trucks, had engaged in a cartel relating to:

  • coordinating prices at "gross list" level for medium and heavy trucks in the European Economic Area (EEA). The "gross list" price level relates to the factory price of trucks, as set by each manufacturer. Generally, these gross list prices are the basis for pricing in the trucks industry. The final price paid by buyers is then based on further adjustments, done at national and local level, to these gross list prices.
  • the timing for the introduction of emission technologies for medium and heavy trucks to comply with the increasingly strict European emissions standards (from Euro III through to the currently applicable Euro VI)
  • the passing on to customers of the costs for the emissions technologies required to comply with the increasingly strict European emissions standards (from Euro III through to the currently applicable Euro VI).

The infringement covered the entire EEA and lasted 14 years, from 1997 until 2011, when the Commission carried out unannounced inspections of the firms. Between 1997 and 2004, meetings were held at senior manager level, sometimes at the margins of trade fairs or other events. This was complemented by phone conversations. From 2004 onwards, the cartel was organised via the truck producers' German subsidiaries, with participants generally exchanging information electronically.

Over the 14 years the discussions between the companies covered the same topics, namely the respective "gross list" price increases, timing for the introduction of new emissions technologies and the passing on to customers of the costs for the emissions technologies.

The collusion identified by the Commission concerned the new emission technologies required by the Euro III to Euro VI environmental standards, specifically coordination on timing and coordination on passing on of costs of emission technologies for trucks compliant with newly introduced emissions standards. The collusion was not aimed at avoiding or manipulating compliance with the new emission standards.

The Commission's investigation did not reveal any links between this cartel and allegations or practices on circumventing the anti-pollution system of certain vehicles (commonly referred to as "defeat devices").

More information will be available on the Commission's competition website, in the public case register under case number 39824, once confidentiality issues have been resolved.


Document Actions