Report: BMW Suspends Talks with Daimler on Parts Purchasing

BMW AG has halted talks with Daimler AG about cooperating on parts purchases after the European Commission accused the two companies, along with Volkswagen Group’s Audi and Porsche units, with conspiring to control parts prices, sources tell the Sueddeutsche Zeitung.

BMW and Daimler have for years reduced costs by pooling some €2 billion ($2.3 billion) in annual purchase orders for such items as tires. The two companies also partnered in 2015 with Audi to buy digital mapping company HERE.

A source tells Sueddeutsche that BMW’s trust in Daimler has been “totally damaged” by the latter’s decision to report a possible cartel to the EC. Doing so could win Daimler immunity if charges are brought.