EU fines 15 carmakers for cartel on recycling old vehicles

Brussels (dpa) – A fine totalling 458 million Euro has been imposed on 15 car manufacturers for participating in a long-running cartel related to end-of-life vehicle recycling, the European Commission said on Tuesday.

German carmaker Mercedes-Benz avoided penalties after revealing the cartel to regulators, while all other companies admitted their involvement and agreed to settle the case.

Volkswagen was hit with the largest fine of more than 127 million Euro, while Renault/Nissan had to pay more than 81 million and Stellantis almost 75 million. Ford was hit with a fine of more than 41 million Euro, while other makers had lower amounts to pay.

The fines relate to the period between 2002 and 2017. The European Automobile Manufacturers’ Association (ACEA) and 16 major manufacturers had entered into anti-competitive agreements, making illegal arrangements to dispose of cars for stripping and scrapping, the Commission said.

The companies also exchanged confidential information and coordinated their actions to prevent competition on recycling.

One key finding was that manufacturers had agreed not to advertise recycling efforts, preventing consumers from factoring in environmental impact when choosing a vehicle.

“We will not tolerate cartels of any kind, and that includes those that suppress customer awareness and demand for more environmental-friendly products,” said European Commission Executive Vice-President Teresa Ribera in a statement. (April 1)