According to media reports, the European Union's antitrust regulator has imposed fines totaling €458 million (approximately $495 million) on Volkswagen, Stellantis, and 13 other car manufacturers and industry associations for participating in a car recycling cartel.
The European Commission launched a surprise investigation into the companies three years ago. The Commission stated that the cartel's activities, which revolved around end-of-life vehicle recycling, spanned from May 2002 to September 2017. The European Automobile Manufacturers' Association (ACEA) coordinated meetings and communications among the involved companies.
The EU competition watchdog said the companies agreed not to compete in promoting the recyclability of their vehicles and remained silent on how much recycled material was used in new vehicles. End-of-life vehicle recycling involves dismantling and processing vehicles that are no longer roadworthy in order to recover and dispose of materials responsibly.
The cartel members also agreed not to compensate car dismantlers for processing end-of-life vehicles. However, EU law mandates that automakers cover these recycling costs if necessary, allowing car owners to dispose of their vehicles at no charge.
EU Antitrust Chief Teresa Ribera stated, "We will not tolerate any form of cartel, especially those that mislead consumers and hinder the demand for environmentally friendly products."
Among the penalized companies, Volkswagen received the largest fine at €127.69 million, followed by Stellantis with €99.5 million, Renault-Nissan at €81.46 million, and Ford at €41.46 million.
Other penalized participants in the cartel include major automakers such as Toyota, Mitsubishi, Honda, Hyundai, Jaguar Land Rover, Mazda, General Motors, Suzuki, and Volvo. The European Automobile Manufacturers' Association (ACEA) was also fined €500,000.
Mercedes-Benz escaped fines after reporting the cartel to EU authorities.
All the companies admitted to their misconduct in exchange for a 10% reduction in the fines.
Stellantis said in a statement that it accepts the decision by the EU competition authority and has fully cooperated throughout the investigation. The company also noted that it had set aside provisions for the fine, which are reflected in its 2024 full-year financial results.
Following the EU's crackdown, the UK's Competition and Markets Authority (CMA) also announced on April 1 that ten automakers-including BMW and Ford-along with two industry associations, have agreed to pay a total of £77.7 million ($100.43 million) in fines after admitting to breaching UK competition laws related to vehicle recycling.
