Crackdown on car horsepower fraud

4 November 2005

BRUSSELS — Fiscal Fraud State Secretary Hervé Jamar is to investigate to what extent car dealers downplay the amount of horsepower a car engine has in the sale of new vehicles.

The Reform Movement (MR) federal minister has been alarmed by practices allegedly used by Saab and BMW franchise owners.

The franchise owners are accused of showing customers a vehicle with less horsepower and supplying them with the accompanying documents.

Once the sale is made, the car’s horsepower is then allegedly increased, newspaper ‘Het Laatste Nieuws’ reported on Friday.

Whoever buys a car with more horsepower under the hood than stated in official documents can earn a significant financial windfall.

Road taxes and insurance premiums increase in relation to the power of a car’s motor.

“I don’t rule out that we will use random tests to see who is guilty of such practices. And dealers who are caught risk losing their licence,” Jamar said.

However, spokesmen from both BMW and Saab denied on Thursday they were aware of franchise holders who were involved in horsepower fraud.

Subject: Belgian news