Allegations of collusion cause German car makers share to plummet down

This occurred due to allegations of collusion among BMW, Daimler and Volkswagen.

German car makers

 

Shares were dumped due to reports in German press late on Friday. These reports caused the investors to dump their shares. The reports stated that there might have been a cartel formed by the companies. They suggested that the companies might have secretly worked together. This collusion may have aided in the “dieselgate” emission scandal.

 

Daimler recently recalled around three million Mercedes – Benz cars, some days before the allegations surfaced. Most of the Mercedes – Benz cars were recalled to reduce their emissions and comply with the norms. Volkswagen owner of Audi also put out a notice for the recall of 850,000 vehicles.

 

European commission said that it was investigating in this matter and that it has come across the evidence of a cartel. Moreover, the car makers may have to face multi – billion euro penalties.

Investigation is already being carried out by the German authorities. Spiegel magazine was the first to report claims stating evidence that a collusion had been uncovered when officers raided the VW offices. That raid was attempt to understand suspicions built by a separate cartel which involved steel.

 

Such allegations have made the employees of these company angry and VW has called for an extraordinary meeting to discuss these claims. This meeting will be held on Wednesday and these claims would be at the top of the agenda. Members of Daimler are both angry and horrified with such allegations being made. Spokesman who works for the council said that if these claims are true there would be consequences to face.

 

A total sum of ten billion has been wiped off the value of these three car giants. This is the amount since the news first broke. There has been a fall of 5.5 percent which is noticed since the time these claims surfaced.

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