Dieselgate Fallout

The Knives Come Out at German Carmakers

zetsche, RC1B1324A100
Who snitched? Picture source: Reuters.

The Dieselgate scandal is causing handwringing and conflict in the normally serene boardrooms of Germany’s well-heeled auto industry, with once friendly firms jockeying to shift the blame and avoid potentially massive fines.

“The auto industry is making headlines and they are not good,” growled Dieter Zetsche, CEO of Mercedes parent Daimler.

This should have been a champagne moment for Germany’s carmakers, with Daimler, BMW and Volkswagen all reporting bumper half-year profits. But the mood has instead turned gloomy, thanks to looming driving bans in a number of cities due to diesel pollution, the hefty cost of recalling millions of cars to fix their pollution equipment, and now the possibility of a drawn-out inquiry into antitrust activity on the agenda of the European Union.

Want to keep reading?

Subscribe now or log in to read our coverage of Europe’s leading economy.