€100m fine for BMW, Merc and VW

Discussion in 'General Discussion' started by Mancstar, Nov 26, 2019.

  1. Mancstar

    Mancstar Hardcore MB Enthusiast

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    BMW, Daimler & Volkswagen fined €100m after forming cartel to buy steel

    Is it just me, dont see the issue with whats happened here?
    Merc, BMW, VW fined for forming a group together and purchasing steel in bulk as 1 party? Obvs have read the article and the issue is the supplier not being able to negotiate with individual companies on the surcharge then surely they could increase the price of the steel!
    Got me thinking how much money they may have saved with the fine being 100mill!
     
  2. Tonygw

    Tonygw Hardcore MB Enthusiast

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    I think its the govement trying to be squeeky clean hypocrites here. I would imagine BMW, Daimler & volkswagen factored in the fine in the whole process.

    And even with a 100M fine they still get a better deal than without each other.

    I agree, I really dont see an issue...
     
  3. CCAALLVVIINN

    CCAALLVVIINN Hardcore MB Enthusiast

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    If that’s the case how come Mercs rust and the others don’t?
     
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  4. Alfie

    Alfie Authorised Forum Sponsor Authorised Forum Sponsor

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    Who has fined them?
     
  5. Yex

    Yex Hardcore MB Enthusiast

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    Probably a section of the regulatory body BaFin which is the German equivalent of our FCA.

    Given the trades took place over a near 10 year period and they all went directly through steel makers these trades were unlikely to have been passed through the market and as such were in breach of price discovery rules.

    As mentioned above this is the National Competent Authority trying to look whiter than white, possibly after the recent debacle over direct German Government financial support for German firms directly impacted by the collapse of Thomas Cook.
     
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  6. OP
    OP
    Mancstar

    Mancstar Hardcore MB Enthusiast

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    Germany’s federal cartel office. As Yex has mentioned they have regulatory powers like our FCA.
     

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