Millions of Brits could be owed huge compensation packages for buying overpriced German cars

MILLIONS of Brits could be owed huge compensation packages for buying overpriced German cars.

The European Commission is investigating BMW, Volkswagen and Mercedes for allegedly cost rigging emissions, engines, brakes and other parts.

The firms are accused of holding secret meetings dating back to the 1990s to fix prices and stay ahead of rivals, The Times reports.

The EU commission has the power to fine companies up to 10 per cent of their annual revenue which could run into the billions.

Almost one in three new cars registered in Britain are made by German companies – nearly 800,000 last year.

And campaigners now say consumers could be due a compensation package that would eclipse the £25billion global bill for the VW emissions scandal.

Share prices for the car giants have already plummeted following revelations of the historic price collusion.

And it was revealed talks could have led to the use of smaller tanks of AdBlue - an engine treatment for diesel cars needed to help improve nitrogen oxide emissions.

Larger tanks would've aided emissions but been more expensive for the firms and reduced boot capacity.

And Der Spiegel, which first reported the claims, suggested this could have even led to VW developing its fraudulent software.

The news comes just a week after Mercedes issued a recall for three million diesel models to improve emissions.

Audi followed suit by calling back 850,000 high-end diesels for a software update.

That's on top of the 1.2million cars recalled by the VW Group as part of the "defeat device" scandal that rocked the industry almost two years ago.

BMW denied the allegations of collusion while other firms have said they do not comment on "speculations and allegations".