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German automakers' stocks fall as EU investigates collusion

BERLIN/FRANKFURT - Volkswagen will hold a special supervisory board meeting on Wednesday to discuss allegations that German carmakers operated a wide-ranging cartel, a source familiar with the matter said on Monday. The European Commission said on Saturday antitrust regulators were investigating a possible German auto industry cartel following a tipoff. At stake is whether carmakers VW, Audi, Porsche, Mercedes and BMW used German auto industry committees to discuss pricing of components and technologies, and whether such talks constituted anti-competitive behavior. A VW spokesman confirmed an extraordinary supervisory board meeting would be held on Wednesday but declined to give details. German auto stocks took a hit in early trading on Monday, weighed down by uncertainty over possible antitrust fines after European regulators said they were probing cartel allegations. VW shares were down 2.8 percent, with Daimler and BMW down 3.4 percent and 2.5 percent respectively, lagging the blue-chip DAX index, which was 0.7 percent lower. Exane BNP Paribas automotive analyst Stuart Pearson said little was known about the allegations, but no signs had emerged about fixing prices charged to consumers. "More ugly details could yet emerge, leaving German manufacturers - and the EU auto sector - still firmly in the sin bin for now," he added. The car industry has been hit with billion-euro fines on both sides of the Atlantic in recent years for cartels related to various parts such as lighting systems, engine coolers and bearings. The industry's record on exhaust emissions is also under close scrutiny after VW admitted in September 2015 to cheating U.S. diesel emissions tests and investigations have shown many vehicles exceeding pollution limits outside of testing labs. On Friday, German magazine Der Spiegel said VW, its Audi and Porsche brands, Mercedes-owner Daimler and BMW may have colluded to fix prices on components, including of diesel emissions treatment systems, using industry committees. Spiegel said the talks also led to the use of smaller tanks containing AdBlue, a urea-based liquid needed to help filter nitrogen oxides (NOx) from diesel emissions. Larger tanks would have been more expensive, the magazine said. Auto industry experts, however, have said the effectiveness of exhaust filtering systems does not depend on the size of an AdBlue Tank. BMW, for example, has equipped its cars with urea injection as well as a NOx-storage catalytic converter.

Mercedes-Benz starts internship program for refugees

Mercedes-Benz has started a new internship program for refugees in Germany, which offers participants work training and German language lessons over the course of fourteen weeks. Its aim is to help refugees and asylum seekers integrate into the German workforce, but not necessarily at the automaker. The "bridge intern" program is a joint effort between Daimler and the German government's Federal Employment Agency. It starts each day on the early shift at 6:00 a.m. with three and a half hours of work in areas like axle production and logistics. That's followed by another three and a half hours of language courses where they learn to converse in German in 10-person groups, which includes help with writing letters for job applications and other critical employment skills. Germany has been flooded recently with refugees and asylum seekers. Many of them have been coming in from the war zone in Syria. However the program also welcomes refugees from other Central Asian and African countries, including Afghanistan, Eritrea, Gambia, Nigeria, and Pakistan. The program is open to participants between the ages of 20 and 51. "The best way for people to integrate is at the workplace," said Michael Brecht, chairman of Daimler's General Works Council. "Doing things together creates understanding for one another. That is why we are delighted that many colleagues have expressed a willingness to mentor the 'bridge interns'." In the statement below, Brecht stresses that the internship participants "are not in competition with temporary agency workers or our core workforce. This program does not put anybody at a disadvantage." The first six weeks of the program are financed by the Federal Employment Agency, but after that, Daimler foots the bull for another eight weeks, paying the interns the standard minimum wage. The first such program has already started at the Unterurkheim plant in Stuttgart, and is set to be followed by other similar programs at additional locations. 40 refugees start 'bridge internships' at Daimler Stuttgart, Nov 09, 2015 - Participants from Afghanistan, Eritrea, Gambia, Nigeria, Pakistan and Syria - Fourteen-week internship in cooperation with the German Federal Employment Agency - Daimler qualifies refugees for the German labor market - Internships for several hundred more refugees are planned at other company locations Forty refugees and asylum seekers have started a so-called 'bridge internship' at Daimler.

The 2016 Spanish Grand Prix flipped all the scripts

The Monaco Formula 1 Grand Prix circuit and the Hungaroring fly the flag for processional races, yet Spain's Circuit de Catalunya is arguably as bad. Before this weekend, the pole-sitter won the race 19 times out of the last 25 years. The front row of the grid produced 23 winners in the past 25 years. The racing gods edited that script this year, when a first-lap crash and two mid-race strategy changes kept things open until the end of the 66-lap race. It started when Mercedes-AMG Petronas teammates Nico Rosberg and Lewis Hamilton took each other out on Lap 1. After Rosberg passed pole-sitter Hamilton into Turn 1, Rosberg's car slowed through Turn 3, somehow in the wrong mode. Hamilton closed in on Rosberg so quickly that once the Brit ducked inside for the pass, he couldn't back out. Rosberg, however, closed the door so suddenly that Hamilton had no choice but to drive onto the grass. When Hamilton spun, he collected Rosberg and both Mercedes' ended up in the gravel trap. The stewards deemed it a racing incident. The crash put Red Bull teammates Daniel Ricciardo and Max Verstappen in the lead, followed by Toro Rosso driver Carlos Sainz and the Ferrari duo of Sebastian Vettel and Kimi Raikkonen. Both Ferraris cleared Sainz by Lap 10, leaving 56 laps for them to haul in the Red Bulls. Ferrari loosely followed Red Bull's pit strategies. Ricciardo pitted on Laps 11 and 28, Vettel pitted on Laps 15 and 37. Verstappen pitted on Laps 12 and 35, Raikkonen pitted on Laps 13 and 36. Pirelli predicted a three-stop race as the fastest and that the medium tire could only go about 23 laps. Verstappen and Raikkonen didn't get those memos. So while Ricciardo and Vettel came in for third stops the Dutchman and the Finn stayed out, with Verstappen ahead of Raikkonen at the front of the race as of Lap 43. That's when Verstappen – 18 years and 227 days old – proved how good a driver he is, lapping perfectly as second-place Raikkonen closed the gap to a little more than half a second. The Finn still couldn't get past the Dutchman down the pit straight even with the help of DRS, nor under braking at the only real passing opportunity into Turn 1. At the end of Lap 66 Verstappen crossed the line ahead of Raikkonen, a victorious end to Verstappen's first race weekend after being promoted to Red Bull. Further back, Vettel and Ricciardo fought for scraps, the German staying ahead to finish third.