BMW’s profit falls 74 percent after setting aside 1.4 billion euros for possible EU fine
Operating profits at German carmaker BMW plunged 78 percent in the first quarter of 2019 after the German carmaker was compelled to set aside 1.4 billion euros to cover a possible fine from EU antitrust authorities over alleged collusion to delay the introduction of clean emissions technology, writes the Financial Times. BMW denies participating in anti-trust activities and is contesting the allegations.
As more and more countries around the world announce concrete goals to phase out internal combustion engines in passenger cars, the automobile's birthplace of Germany is embroiled in a scandal over exhaust emissions manipulation in diesel cars. When "dieselgate" broke in September 2015, it appeared to involve only Volkswagen, the country’s largest car company. Since then, however, almost all major German auto manufacturers have become implicated. In April 2019, the European Commission officially accused carmakers VW, BMW and Daimler of illegal collusion to avoid competition on emissions reduction technology.