Just as the world reels from several major scandals out of Japan, another one may be emerging in Europe. Reuters reports that:
European Union and German antitrust officials searched the offices of Daimler (DAIGn.DE) and Volkswagen (VOWG_p.DE) on Monday, widening an inquiry into alleged collusion. The EU competition watchdog said in July that it was investigating several German carmakers on suspicion they had conspired to fix prices in diesel and other technologies over several decades.
This brings the investigation to a whole new level. The company has yet to be found guilty but the audacity of such a move by both German and European officials should have investors worried.
This is not the first time that VW has found itself in hot water as of late. In late September, Bloomberg reported that VW subsidiary, Scania, would have to pay $1.03 billion for a price fixing scheme. This latest development will not be doing them any favours when they contest the fine in court.
Consumer confidence in major brands has taken a hit over the past few weeks as Kobe Steel, Nissan and now VW and Daimler are all being implicated in major scandals. Consumers and stockholders are now being left to fell the effects of the foul play, so be sure to take the necessary steps to insulate yourself from the fallout.
While the VW-Daimler investigation is still under way, be sure that you are ready for any outcome.
To read Reuters’ article on the EU-German raid on VW and Daimler, click here.
To read Bloomberg’s article on the Scania price fixing scandal, click here.
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