Statement on European Commission’s ongoing antitrust proceedings

  • BMW Group to examine Commission’s statement of objections in depth
  • Talks in working groups aimed at technological freedom of choice
    and the practicability of legally required reduction of exhaust gas emissions
  • Lawful coordination of industry positions on regulatory framework
    should not be equated with unlawful cartel agreements
  • BMW Group exhaust gas treatment systems differ from competitors’
  • No evidence of agreements on use of unlawful defeat devices

 

Munich. On 5 April 2019, the BMW Group received a
so-called “statement of objections” from the European Commission in
connection with the ongoing antitrust proceedings. The statement
relates to the investigation into talks held by working groups of
German automobile manufacturers a number of years ago and includes a
provisional competitive assessment by the EU Competition Authority.

 

The BMW Group will examine the objections and information provided by
the European Commission and submit a reply to the authority. Since
this matter concerns ongoing proceedings of the European Commission,
the company will not comment on the content of the objections at this
time. The BMW Group’s review of the statement of objections and any
resulting potential financial impact is ongoing.

 

The BMW Group regards these proceedings as an attempt to equate
permissible coordination of industry positions regarding the
regulatory framework with unlawful cartel agreements.

 

No price or territorial agreements to the detriment of
customers or suppliers

Based on current knowledge, the Commission is specifically
investigating whether German automobile manufacturers cooperated in
technical working groups to restrict competition in development and
rollout of emission-reduction technologies. From the BMW Group’s point
of view, this situation cannot be compared with cartel investigations
involving territorial and price agreements, for example.

 

Fundamentally, the participating engineers from the manufacturers’
development departments were concerned with improving exhaust gas
treatment technologies.

Unlike cartel agreements, the whole industry was aware of these
discussions – which did not involve any “secret agreements” and did
not intend any detriment to customers or suppliers.

 

Optimisation of filling station infrastructure as requirement
for smaller and lighter AdBlue tanks

Based on current knowledge, a focus of the European Commission’s
proceedings is the allegation that manufacturers reached an agreement
on the size of AdBlue tanks for SCR (Selective Catalytic
Reduction)-systems. This is said to have restricted competition for
the best emission control method for diesel vehicles.

The fact remains that German automobile manufacturers jointly
developed the first generation of an SCR system together with an
automotive supplier. This cooperation on SCR development resulted in
effective exhaust gas treatment systems rapidly achieving series maturity.

 

A further goal of the manufacturers was the establishment of an
extensive, customer-friendly AdBlue filling infrastructure over the
long term as a pre-condition for the installation of smaller and
lighter tanks. Manufacturers and automotive industry associations held
talks with the petroleum industry regarding this matter.

 

The working groups did indeed discuss the introduction of smaller
AdBlue tanks, subject to availability of an adequate filling
infrastructure. This was explained in public, for example by the
German Association of the Automotive Industry (VDA) at a “Diesel
Emissions Conference” in June 2009 in Brussels. However, as it became
apparent that this infrastructure would not be available quickly
enough, the BMW Group ultimately installed larger AdBlue tanks.
Compromising emission control efficiency for the sake of optimising
tank size was never an option for the BMW Group.

 

BMW Group exhaust gas treatment technologies different from
other manufacturers’

The exhaust gas treatment technologies used by the BMW Group are
significantly different from other solutions in the marketplace. The
BMW Group has charted its own course from the beginning, using a
combination of several emission control systems in its diesel
vehicles. In vehicles where emission control is performed by SCR
systems, a NOx storage catalyst is also installed. This results in
excellent emissions performance in real driving conditions – also in
comparison with competitors. The combination of these two systems in
conjunction with in-engine exhaust gas recirculation also means that
BMW vehicles’ AdBlue consumption is very low compared with competitors.

 

Talks motivated by desire to ensure competition for best solution

The European Commission further alleges that the companies concerned
agreed not to introduce the petrol particulate filter (PPF) or to
delay its introduction – thereby restricting competition for the best
technology to reduce particulate matter. It should be noted that the
discussions between manufacturers were directly linked to lawmakers’
deliberations at that time regarding the introduction of limits for
particulate matter. The aim of the manufacturers and their
associations was to participate in the discussion concerning the
definition of future, technically achievable limits. This is usual
practice in all industries regarding upcoming regulatory proposals. In
order to achieve an industry position on the proposed legislation, the
manufacturers first reached agreement among themselves and then via
the VDA and ACEA automobile associations. The results of the
discussions were incorporated into the consultations held by the Commission.

 

The focus was on promoting legislation that was technologically
neutral and did not necessarily require installation of a PPF. This
would maintain technological freedom of choice for how to comply with
limits – for example, through the use of in-engine measures.

 

The background to this position was that PPF technology at that time
had many disadvantages over in-engine measures: it was not yet fully
mature and was associated with additional weight and a corresponding
impact on CO2 emissions. At the time, there was also a negative effect
on engine performance. The aim of ensuring technological freedom of
choice in this case was precisely to achieve the most open and intense
competition possible for the best solution.

 

No evidence of agreements on use of unlawful defeat devices

The BMW Group attaches great importance to the findings confirmed by
the European Commission in its press release of 18 September 2018 that
the ongoing investigations concern only potential violations of
competition law and not deliberate unlawful manipulation of the
emission control system. There is no allegation of this kind against
the BMW Group.

 

The BMW Group is committed to responsible and lawful conduct as the
basis for all its business activities. The company has established a
comprehensive compliance management system to ensure compliance with
applicable legislation, including the provisions of antitrust law.

 

If you have any questions, please contact:

 

Corporate Communications

 

Michael Rebstock, Corporate Communications

michael.rebstock@bmwgroup.com
, Telephone: +49 89 382 20470

 

Mathias Schmidt, Head of Corporate and Culture Communications

Mathias.M.Schmidt@bmwgroup.com,
Telephone: +49 89 382-24544

 

Media website: www.press.bmwgroup.com

Email: presse@bmwgroup.com

 

 

The BMW Group

 

With its four brands BMW, MINI, Rolls-Royce and BMW Motorrad, the BMW
Group is the world’s leading premium manufacturer of automobiles and
motorcycles and also provides premium financial and mobility services.
The BMW Group production network comprises 30 production and assembly
facilities in 14 countries; the company has a global sales network in
more than 140 countries.

In 2018, the BMW Group sold over 2,490,000 passenger vehicles and
more than 165,000 motorcycles worldwide. The profit before tax in the
financial year 2018 was € 9.815 billion on revenues amounting to
€ 97.480 billion. As of 31 December 2018, the BMW Group had a
workforce of 134,682 employees.

The success of the BMW Group has always been based on long-term
thinking and responsible action. The company has therefore established
ecological and social sustainability throughout the value chain,
comprehensive product responsibility and a clear commitment to
conserving resources as an integral part of its strategy.

 

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