German Automakers Under Investigation for Decades of Collusion

bloomberg.com/news/articles/2017-07-24/bmw-denies-diesel-cheating-as-regulators-probe-broader-cartel

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German automakers are under intense scrutiny after a report in Der Spiegel magazine on Friday said BMW, Daimler AG and Volkswagen AG, including its Audi and Porsche brands, may have colluded for decades on technology, including the size of AdBlue tanks. European Union and German authorities are studying possible collusion among German automakers, according to a statement released Saturday.

“It will be extremely complex and difficult to assess the financial damage that these collusions have triggered,” Arndt Ellinghorst, a London-based analyst with Evercore ISI, said by e-mail. “There is also a large gray area between legal and illegal collaboration.”

Extending declines from Friday, BMW fell 2.5 percent, Volkswagen declined 3.1 percent and Daimler dropped 2.6 percent at 9:23 a.m. in Frankfurt trading.

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I'm not surprised has nobody noticed that these brands dont actually compete with each other. Their flagship cars fill different niches.

This in contrast to Japan and the US where the car manufacturers are in direct competition across all models.

Even here in aus before the car manufacturers left, they were in direct competition across all models.

Tl;Dr german car manufacturers are like soviet union aircraft manufactures and their products fill different requirements. Germany is communist.

Are you yidding me? 3 series, a4, c class compete in compact segment.

5 series, a6, e class compete in midsize sedan segment.

7 series, a8 s class compete in full size sedan segment.

etc.

Want small car buy the veedub.
Want sedan but the beamer
Want luxury sedan buy the merc
Want grunty rally sedan buy the Audi
Want roadster buy the push

This is not to say that they don't produce other models for the illusion of market competition, but this is the general rule and this is what comes to peoples mind when you mention each brand. The manufacturers know this and a very and it would appear that they have an unwritten rule of not intruding on each other's image/market in any significant way. This is in steep contrast to Toyota vs Nissan, Ford vs GM etc etc.

They compete in practically the same segments. BMW has gotten more luxurious and Audi has tried to get sportier but they certainly ape into each other's market share. They sell sedans and SUVs that are within a few inches of each other in size and a few hundred in price in some cases.

Most popular vw jetta 20k
Most popular BMW 3 series 30k
Most popular merc c class 40k

There is a world of difference between all three of these. Granted less between the bmw and the merc. But a 3 series is not a luxury car its an executive car, whereas the c class is luxury. 3 flagship vehicles 3 different price brackets 3 different markets.

>collectivism is more pro-liberty than capitalism
Just wanted to inform you that your opinion sucks and you should be ashamed of it

you really think the average transaction price on a 3 series is 30k?

>there will be more corporate tyranny in an ideology where all the regulations that harm small business are removed

>be good capitalist
>talk to other car makers to find improvements in pricing for suppliers
>make cars cheaper this way for the consumer

Media says this is bad. WTF?

Starting price 3 series 33k USD
Starting price c class 41k USD

Would also remove all regulations to large businesses allowing collusion to occur.

I'm talking about average transaction price, not MSRP.

>Most popular vw jetta 20k
>Most popular BMW 3 series 30k
>Most popular merc c class 40k
Anglo market isn't relevant for these car makers. 85 percent of their business is in continental Europe, Asia and Latin America.

What regulations? Most of them skirt around everything. The anti-monopoly laws for one prevent absolutely nothing. Instead of one company controlling everything we have two or sometimes 3 massive conglomerates who don't tread on each other's toes. Business has its hand in government because it pays to have laws and regulations in your favour

Where will the collusion start where it hasn't already?

Also he is a fucking retard. BMW is cheaper because at least here in the United States it offers a stripper value model with a detuned 2 liter engine and Mercedes doesn't have such a model. Audi, BMW, and Mercedes ALL offer compact luxury cars with 2 liter turbocharged direct inject gas engines for roughly 40-50k average price with options. They ALL offer versions with 3 liter twin turbocharged v6 engines for 50-70k. They have similar dimensions and features. Aussie is just retarded.

Well, here you get an actual investigation of collusion rather than none.

Woah an investigation by government officials they already bought off, so effective...

If starting price is lower then average retail price is lower. How are you this daft. There is an illusion of competition. A BMW 3 series is not a luxury car.

Because most models are sold with options and here at least the higher-tuned 240 something horsepower version sells more. Starting price has nothing to do with average transaction price.

Expand the search to the rest of the world and the findings will be the same 3 different markets 3 different cars.

We know Germany is a socialist hell hole why is it so hard to believe that their car manufacturers are socialist companies.

they compete in the entry level luxury market. They are compact sedans with 2 liter turbocharged engines. VW Jetta does not compete in the same class. You are a fucking retard.

Are you implying people don't by the extra options on the merc?

They do but they are in the same entry level luxury category. They are designed to compete with each others. You are fucking retarded.

fuck spiegel its an anti german shit magazine