BMW Sues Suppliers Over Price Fixing, Despite Being Found Guilty of Price Fixing Themselves
BMW really does want to eat their cake, all of it including the cherries and the crumbs. When we read that BMW was suing component suppliers Denso and Valeo over price-fixing we couldn’t believe the double standards involved. between 2004 and 2013 BMW formed a cartel with Mercedes and Volkswagen to fix the price of steel. According to Germany’s Competition Commission, the companies met twice a year to set steel tariffs for components such as steering rods, gears and crankshafts.
BMW was fined by the German state to the tune of €28 million euros. Mercedes received a €28 million euros fine but bad-to-the-bone Volkswagen was hardest hit with a €48 million euros fine. The price-fixing of steel continued until 2016. It is the ultimate, perhaps the mother of all hypocrisies that BMW now turns around and accuses others of price-fixing.
In 2017 the EU Competiton Authority found that several auto suppliers were operating a cartel. The cartel received a fine totaling €155 million euros. BMW announced Wednesday that they would be seeking damages from Denso and Valeo totaling €155 million euros.
The auto-supplier cartel affected a host of auto manufacturers including former steel cartel operatives Mercedes and BMW. Volvo, Renault, Jaguar, Land Rover, Nissan even Suzuki were also affected by price-fixing. As with any cartel, the costs are always passed on to the consumer.