The European Union is investigating five German car manufacturers following allegations that they have have engaged in anti-competitive behavior.
Reuters reported that Volkswagen, Audi, BMW, Porsche and Mercedes are all a target of the probe. Volkswagen is so concerned it has called an emergency board meeting on Wednesday.
The European Commission said it received a tip that the car makers were engaging in “cartel” activities. Specifically, the car makers allegedly meet in secret to discuss the pricing of components and various technology, and now authorities want to determine whether these alleged meetings were anti-competitive.
Moreover, the German news magazine, Der Spiegel, said the probe focuses on whether the companies used committees to agree upon costs, suppliers, technologies, and more.
Reuters noted that, so far, there are no signs of price fixing that would impact customers, but quoted Stuart Pearson — an automotive analyst for Exane BNP Paribas — as saying: “More ugly details could yet emerge, leaving German manufacturers – and the EU auto sector – still firmly in the sin bin for now.”