Volkswagen, BMW and Daimler are among six companies that have been raided by Germany’s antitrust regulator as part of a probe on steel purchasing in the car industry.
According to Kay Weidner, spokesperson for the Federal Cartel Office, the conducted raids form part of an investigation to determine whether antitrust rules have been broken.
The probe relates to the purchasing of steel from suppliers, rather than classic cartel practices of collusions over the price of sold goods.
Five of the companies – BMW, VW, Daimler, and car parts makers, ZF Friedrichshafen and Bosch – have confirmed that their offices have been raided by authorities, and that they are co-operating.
“We are working to clarify the situation,” said a spokesperson for BMW.
The probe comes in the wake of Volkswagen’s emissions scandal, with subsequent questions now being asked about the potential manipulation of diesel-engine emissions by other automakers.
Steel is one of the most important materials in the auto industry, amounting to one third of raw material costs. According to the World Steel Association, an average of 900 kg of steel is used in the production of a single car, with the German steel industry accounting for 26% of global sales.
However, steelmakers have come under pressure as the auto industry expands its use of alternative materials, with the likes of aluminium and carbon-fibre often being used in order to reduce weight.
Like the European Commission, the antitrust regulator has the power to impose fines up to 10% of annual sales. In 2014, the commission found German supplier Schaeffler and Swedish supplier SKF guilty of colluding with Japanese suppliers over the sale of ball bearings. The charges resulted in both companies paying fines of more than €300-million each.
