German carmakers face potentially damaging new scandal

Frankfurt

GERMANY'S high-end carmakers face a potentially destructive new scandal after European antitrust authorities said on Saturday that they were looking into allegations that Volkswagen (VW), Daimler and BMW colluded illegally to hold down the prices of crucial technology, including emissions equipment.

If proven, the allegations threaten to further damage the country's reputation for engineering excellence. That reputation has been badly tarnished by VW's admission that it illegally installed software in its diesel-powered cars to evade standards for reducing smog.