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Cartel allegations could stall Daimler's drive

Wednesday, July 26, 2017 - 01:34

Daimler's supervisory board meets amid a European Commission investigation into alleged anti-competitive behavior among German carmakers. Laura Frykberg reports.

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Daimler's smooth ride - getting, perhaps, a bit bumpier. While its quarterly operating profit is up 15 percent and Q2 earnings, more than 3.7 billion euros... It's now facing allegations its part of a German carmaker cartel. (SOUNDBITE) (English) LCG SENIOR ANALYST, JASPER LAWLER, SAYING: "I think you can say that the market is worried. We saw the drastic effect on Volkswagen share price after we initially saw the emissions scandal break and say there is obviously a concern in the back of investors' minds that there is another share price decline on the road map for these other carmakers as well. " Daimler, along with BMW, VW, Porsche and Audi are alleged to have colluded to disadvantage foreign carmakers. Including fixing suppliers, prices and standards. Supervisory boards of Daimler and VW were to meet to discuss the case. Which could - if found in breach of EU cartel rules - cost them as much as 10 percent of their global turnover in fines. (SOUNDBITE) (English) LCG SENIOR ANALYST, JASPER LAWLER, SAYING: "If anything only the first movers, when it comes to admitting wrongdoing, tend to actually get smaller fines." Or in the case of Daimler, possibly even immunity. Reuters understands it first raised the issue of collusion with cartel authorities.. Under EU rules, a company blowing the whistle on wrongful collusion usually escapes penalty.

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Cartel allegations could stall Daimler's drive

Wednesday, July 26, 2017 - 01:34