BMW may take a $1.2 billion hit to its bottom line if EU charges stick that it colluded to delay technology for cleaner auto emissions, but VW and Daimler are likely to get off much more lightly
BMW may take a 1 billion euro hit to its bottom line if EU charges stick that it colluded to delay technology for cleaner auto emissions, but VW and Daimler are likely to get off much more lightly, while environmentalists are angry that cash penalties are ineffective.
The EU opened an investigation last September into suspected collusion between BMW, Volkswagen and Daimler to delay clean-emissions technology in cars and SUVs. The EU commission alleged the automakers participated in a cartel to limit or delay two types of technology for diesel and gasoline cars. The manufacturers have 10 weeks to respond to the charges, and in theory could be fined up to 10% of global revenuesquarter. Reflecting this, management is lowering 2019 profit guidance by 1 to 1.5 from 6.8%. We had already expected 1Q auto EBIT margins to be below 6% but reflecting the provision we believe it is possible BMW could be loss making,” Citi Research analyst Raghav Gupta-Chaudhary said.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
EU speeds emissions probe with charges for VW, Daimler and BMWThe European Union accelerated a probe into Volkswagen AG, Daimler AG and BMW AG over suspected collusion that could have delayed clean-emissions technology for cars.
Read more »
EU speeds emissions probe with charges for VW, Daimler and BMWThe European Union accelerated a probe into Volkswagen AG, Daimler AG and BMW AG over suspected collusion that could have delayed clean-emissions technology for cars.
Read more »
E.U. regulators accuse BMW, Daimler, Volkswagen of colluding to block emission-fighting technologyThe European Commission alleges the German automakers conspired to delay the development and release of two emissions-cleaning systems for eight years.
Read more »
Trump’s company made late tax payments on L.A. golf course properties, incurring finesThis was the second year in a row that the Trump Organization had missed a deadline
Read more »
EU fines GE $58 million over misleading data in Danish dealEU antitrust regulators on Monday fined U.S. conglomerate General Electric 52 mi...
Read more »
EU lawmakers back fines for internet firms that fail to remove extremist contentEuropean Union lawmakers have backed plans to fine Facebook, Google, Twitter and...
Read more »
EU needs to know why Britain wants Brexit extension, what role it will play: FranceThe European Union must understand what Britain wants to achieve during its requ...
Read more »