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BMW loses appeal against $158 million fine by Swiss competition watchdog

BMW will have to pay a $158 million fine that Swiss competition authorities imposed on the German automaker five years ago after Switzerland's top court said Friday that it had rejected its appeal.

Published: 11 November 2017 10:07 CET
BMW loses appeal against $158 million fine by Swiss competition watchdog
Photo: DPA

“The Federal Supreme Court of Switzerland has rejected the appeal by the company Bayerische Motoren Werke AG… related to the fine of around 157 million francs imposed in 2012,” or $158 (135 million euros) at current exchange rates, the court said.

The Swiss Competition Commission (COMCO) claimed that since 2003 the German automaker had prevented Swiss nationals from buying its BMW and Mini cars abroad.

A clause in the contracts of BMW dealers operating in the European Economic Area (EEA) prohibited sales to clients from countries outside the bloc, making it hard for individuals to import the cars to Switzerland, COMCO said at the time.

During the period of the alleged practice, the Swiss franc had strengthened significantly against the euro, making purchases in the eurozone more advantageous.

COMCO said BMW's actions amounted to an arrangement to divvy up geographical markets, a violation of Swiss anti-cartel laws.

The carmaker had denied any wrongdoing and first appealed the fine to the Swiss Federal Administrative Court, which rejected the appeal in 2015.

It then lodged an appeal with Switzerland's highest court, which rejected the attempt in a decision handed down last month, and made public on Friday.

READ ALSO: BMW recalling around 1 million cars in US over fire risks

BMW

BMW to stop work in UK plant for two days due to Brexit

German luxury car manufacturer BMW will temporarily close its British plant in Oxford for two days around the current scheduled date for Brexit, a company executive revealed Tuesday.

Published: 10 September 2019 14:56 CEST
BMW to stop work in UK plant for two days due to Brexit
Workers at BMW's mini-plant in Oxford. Photo: DPA

“The first concrete measures we have agreed with suppliers is (that) we
will not be producing on October 31st and November 1st,” BMW's chief finance officer Nicolas Peter told reporters at the Frankfurt Motor Show.

He said the decision was agreed with suppliers to “ensure the logistical
security” of the Oxford site, which produces the Mini brand models.

“We have prepared our processes for the Brexit, our systems are able to
cope,” assured Peter.

READ ALSO: German car parts maker to shut UK sites, citing Brexit

Despite a series of setbacks in Westminster, British Prime Minister Boris
Johnson has insisted he will not ask seek a new postponement to the UK's
withdrawal from the European Union, currently set for October 31st.

Like other car manufacturers with plants in the UK, BMW is preparing for
the prospect of a 'no-deal Brexit' and Britain's withdrawal from the EU
without a deal, which Peter warned could push prices up.

READ ALSO: Luxury German carmaker Porsche warns of Brexit price hike on UK cars

“A 'no-Deal' means that WTO (World Trade Organisation) tarifs will come
into force, which means an aggravated situation compared to the existing one,” he said.

“We would therefore have to increase prices in different markets,” if sales
and production decreased, he explained.

Other manufacturers have already warned of drastic consequences if Brexit goes badly.

Last month, Peugeot chief Carlos Tavares told the Financial Times that
production of Vauxhall and Opel Astra cars could be shifted to southern Europe from Ellesmere Port on Merseyside if Brexit has a negative impact on business.

READ ALSO: German business warns of Brexit 'chaos'

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