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December 21, 2024
BMW and Volkswagen Fined Nearly  Billion for Colluding to Make Less Eco-friendly Cars

Approximately two years after the Dieselgate diesel emissions scandal broke, the European Union (EU) discovered a cartel consisting of three automotive industry giants – Daimler (Mercedes-Benz’s parent company), Volkswagen, and BMW. The secret group allegedly colluded on limiting and delaying new technology for reducing toxic emissions.

Known as the German Five (Daimler, VW, Porsche, Audi, and BMW), the cartels secretly met for around two decades and exchanged valuable and sensitive information. They also colluded on the average consumption and size of the AdBlue tank. AdBlue is used to neutralise nitrogen oxide or NOx, a reactive gas that causes thousands upon thousands of premature deaths every year. Bigger tanks cost a lot of money, so in 2008, the German Five agreed to limit urea consumption and tank size to eight litres for all vehicles.

A moderately-sized AdBlue tank vs. a bigger one meant they saved on expenses but limited efficiency. An eight-litre tank cannot even exceed 3,700 miles – which is miles and miles away from the 10,000 miles that vehicles typically cover. A 19-litre would have been ideal for maximum AdBlue efficiency.

The EU also explained that the German Five has the technology needed to lower toxic emissions but they agreed not to compete, use, and take advantage of its full potential to achieve cleaner emissions.  What they did constituted an act that limited clean emissions technology.

Fined

After careful investigation, the European Union executive branch decided to fine the cartel for colluding to make less eco-friendly vehicles. BMW and the Volkswagen Group have to pay a collective fine of $1 billion (or £883 million) – $373 million (£329.34 million) for BMW and $595 million (£525.35) for VW.

Meanwhile, Daimler is not paying any fines because the carmaker was the one that informed the regulators about the existence of the cartel.

The cartel was initially exposed in a Der Spiegel report that came out in July 2017. It was alleged that the cartel had been meeting secretly since the 1990s. Collusion accusations were formalised by the EU in 2019.

The biggest diesel emissions scandal

The German Five cartel fiasco is an issue separate from the 2015 Dieselgate scandal, although both are considered acts of deceit that endanger the environment and car owners (and everyone around them).

It was in September 2015 when the Volkswagen Group received a notice from the California Air Resources Board and the United States Environmental Protection Agency. The said authorities informed them that defeat devices used for cheating emission tests were found in Audi and VW vehicles sold to US drivers.

The VW Group initially denied the accusations but later admitted that they knew about the devices and the purpose for installing these. A defeat device is used to determine when a vehicle is in testing for emissions regulations. Once testing starts, the device manipulates emission levels so these would be within the World Health Organization or WHO-mandated legal limits. To regulators, the vehicle is clean, safe, high-performing, and emissions-compliant.

Once the vehicle is driven on real roads, the vehicle goes back to its default settings, and its NOx emissions skyrocket to levels that exceed government-mandated limits. So, in reality, the vehicle is a pollutant and every time it is on the road, it contributes to air pollution.

Mercedes-Benz and BMW are also on the list of carmakers that used defeat devices in their diesel vehicles. Along with VW and other manufacturers implicated in the biggest diesel emissions scandal in the global automotive industry, they lied to their customers and mis-sold vehicles that spew out considerable amounts of pollutants.

Why NOx is dangerous

By agreeing to limit and delay technology for cleaner emissions, Daimler, VW, and BMW exposed the environment and drivers to dangerous nitrogen oxide. Diesel vehicles with defeat devices also endanger the environment and human health because of the massive amounts of NOx they release.

Acid rain, smog, and ground-level ozone are formed when NOx reacts with other elements. Acid rain and smog make polluted air even more polluted. Ground-level ozone affects vegetation; it weakens crops and trees, making them susceptible to damage and frost.

For people with mental health issues, being exposed to NOx emissions can lead to increase episodes of depression and anxiety. Cognitive abilities are also vulnerable when a person regularly breathes in nitrogen oxide emissions. This can develop into Alzheimer’s disease and other types of dementia.

Health impacts are unavoidable when one is always exposed to NOx emissions. If exposure is low-level, the common effects are breathing difficulties, lung problems (such as fluid in the lungs), asthma, bronchitis, and other respiratory illnesses.

If exposure is high-level and constant, the effects are often serious: laryngospasm (vocal cord spasm), asphyxia, increased risk for cancer, and cardiovascular diseases. Numerous studies have also proven that exposure to NOx emissions can lead to premature death.

Car owners affected by the diesel emissions scandal are exposed to NOx emissions. They were also lied to by their carmakers. They have the right to bring a BMW emissions claim against the latter.

Verify your eligibility to claim

Before you can make a diesel claim, you have to verify first if you are qualified to make one. Visit the ClaimExperts.co.uk website to find out if you are eligible. Once you determine your eligibility, you can start working on your BMW emissions claim.

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