BMW Denies Cartel Allegations, Recalls Euro 5 Diesels

German Car Companies Have Run A Secret Cartel Since The 90s: Report

German Car Companies Have Run A Secret Cartel Since The 90s: Report

"It is premature at this stage to speculate further", the commission said. "The Commission and national competition authorities cooperate closely with each other on such issues in the context of the European Competition Network".

In a statement on Saturday, the European Commission partially confirmed a report in Germany's Der Spiegel magazine that said the authorities were investigating evidence that representatives of the carmakers met regularly to agree on technical specifications for everything from brakes to clutches to emissions systems.

Headquarters of German publishing and media company Der Spiegel in Hamburg, Germany.

Volkswagen would not comment late this week on the matter. CEO Matthias Mueller was quoted by a German newspaper on Saturday saying the company would not comment on "speculation and conjecture". If EU officials ultimately find that the carmakers broke competition law, they could fine them billions of euros.

German carmaker Bayerische Motoren Werke AG or in English, Bavarian Motor Works (BMW) that is manipulated emission treatment system in its vehicles.

"We compete to provide the best exhaust treatment systems", it said.

But a spokesperson for the Munich-based carmaker declined to comment on the broader cartel allegations arising from the Spiegel article.

The automobile industry contains to struggle in its attempt to fix the damage to its overall reputation that was caused by the admission two years ago by Volkswagen that it had cheated on tests for diesel emissions.

Mercedes and Audi have already announced similar recalls, which will affect more than three million diesels from the company with the three-pointed star logo and 850,000 diesels from the four-ring brand.

BMW also said Sunday it was offering owners of at least 350,000 diesel cars a voluntary software upgrade free of charge to incorporate "knowledge gained in the field over the last years to realize further improvements in emissions".

Government officials have invited top auto executives to meet on August 2 for what it officials called a diesel summit.

At the same time, it said it had created a new line of diesel engines with "exemplary emissions" that would be introduced rapidly across the company's entire range.

VW and its Audi division have previously admitted in court documents that the tanks they installed in their cars did not hold enough of the solution to last between oil changes.

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