EC Announces Monster $3.2 Billion Fine for Truckmakers Including Daimler, Volvo

European Union antitrust regulators handed down a record 2.93-billion-euro ($3.24 billion) fine on German carmaker Daimler, Paccar, Volvo/Renault and Iveco on Tuesday for taking part in a cartel related to emissions-reducing technology.

Daimler faces the largest fine of around EUR1 billion, followed by DAF with penalties of EUR753 million. It launched its investigation that year after MAN blew the whistle, thereby escaping any penalty. Their intent was to insulate profits from the costs of meeting nitrogen oxide emission restrictions.

The truck manufacturers also were accused of forcing customers to pay the costs for emissions technologies required to comply with “increasingly strict European emissions standards”, the commission said.

Daimler was the hardest hit, incurring fines totaling 1 billion euros, while Paccar’s DAF was fined 752.7 million euros and Iveco was charged 494.6 million euros. Volvo shares were up 2.4 percent.

“We have taken these events very seriously from the outset and our full cooperation with the commission resulted in a very substantial reduction in the fine”.

Proceedings have been opened separately against Scania, which was not covered by this decision.

MAN and Daimler both confirmed the settlements.

Iveco and DAF weren’t immediately reached for comment. “We are now able to look forward and focus on our business”, Volvo president and CEO Martin Lundstedt said.

The EU regulator disagreed, in comments that may embolden owners of the 30 million trucks plying European roads to consider their own legal action in the wake of the findings.

Germany’s MAN tipped off the European Commission about the collusion at the highest level, triggering an investigation that began with raids on large truck manufacturers in 2011.

The European Union is fining five truck makers almost 3 billion euros for acting as a cartel to fix prices of medium and heavy-duty trucks and time the introduction of technologies to comply with emissions rules. The collusion was not aimed at avoiding or manipulating compliance with the new emission standards and the investigation did not reveal any links between this cartel and allegations or practices on circumventing the anti-pollution system of certain vehicles.

“Delaying the introduction of environmentally friendly technology in agreement with competitors is not my idea of competition”, Vestager said.