The European Union (EU) has imposed fines totalling €458m on fifteen car manufacturers for participating in a cartel that affected the recycling of end-of-life vehicles (ELVs).
Volkswagen received the largest fine at €127.69m, followed by Stellantis (including Opel) at €99.5m, Renault-Nissan at €81.46m, and Ford at €41.46m.
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The EU also fined the European Automobiles Manufacturers’ Association (ACEA) €500,000 for taking part in ELV recycling cartel.
Other major players fined include BMW, Volvo, Toyota, Suzuki, Mitsubishi, Honda, Hyundai, Jaguar Land Rover, Mazda, and GM.
Mercedes-Benz was exempt from fines due to its disclosure of the cartel under the leniency programme.
According to the EU, for over 15 years, the involved parties colluded on the recycling of ELVs, agreeing not to compensate car dismantlers for their services and to suppress information about recycling in their marketing efforts.
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By GlobalDataThis move was found to violate EU directives requiring carmakers to cover recycling costs and inform consumers about the recyclability of new cars.
The EU antitrust regulators’ investigation, which spanned from 29 May 2002 to 4 September 2017, uncovered that ACEA facilitated the cartel by arranging meetings and communication among the manufacturers.
The companies’ agreements aimed to avoid paying dismantlers and to limit consumer knowledge about the recycling performance of cars, thereby reducing pressure on manufacturers to exceed legal recycling requirements.
In exchange for a 10% reduction in their fines, all carmakers admitted to their involvement in the cartel.
A statement from Stellantis acknowledged the EU’s decision, highlighting the company’s cooperation throughout the investigation.
EU Clean, Just and Competitive Transition Executive Vice-President Teresa Ribera said: “Today, we have taken firm action against companies that colluded to prevent competition on recycling.
“These car manufacturers coordinated for over 15 years to avoid paying for recycling services, by agreeing to not compete with each other on advertising the extent to which their cars could be recycled, and by agreeing to remain silent on the recycled materials used in their new cars.”
Last month, it was reported that EU planned to introduce measures aimed at increasing demand for electric vehicles (EVs) and mandating more locally produced batteries in the EU.
