BRUSSELS, April 1 (Reuters) – The European Union fined Volkswagen, Stellantis, and 13 other automakers a total of 458 million euros ($495 million) on Tuesday for their involvement in a vehicle recycling cartel. The EU’s antitrust watchdog also fined the automakers’ industry association, ACEA.
The European Commission, which raided the companies three years ago, revealed that the cartel operated from May 2002 to September 2017. The companies, organized by ACEA, coordinated their efforts on the recycling of end-of-life vehicles (ELVs). These vehicles are dismantled and processed for recycling when they are no longer roadworthy.
According to the Commission, the carmakers colluded to avoid competing in promoting the recyclability of their vehicles. They also agreed not to disclose the amount of recycled materials used in their new cars. In addition, the companies collectively decided not to compensate car dismantlers for processing ELVs. EU law requires manufacturers to bear the costs of recycling these vehicles, allowing car owners to dispose of them at no cost through authorized dismantlers.
“We will not tolerate cartels of any kind, especially those that undermine customer awareness and prevent demand for environmentally friendly products,” said EU antitrust chief Teresa Ribera.
Volkswagen received the largest fine, totaling 127.69 million euros, followed by Stellantis with 99.5 million euros. Renault-Nissan was fined 81.46 million euros, while Ford faced a penalty of 41.46 million euros.
Other companies penalized included Toyota, Mitsubishi, Honda, Hyundai, Jaguar Land Rover, Mazda, GM, Suzuki, and Volvo. Mercedes-Benz avoided a fine after alerting EU authorities about the cartel.
ACEA, the carmakers’ trade association, was also fined 500,000 euros.
All the automakers admitted their involvement in the cartel, which led to a 10% reduction in their fines. Stellantis acknowledged the decision and stated it had fully cooperated with the EU’s investigation. The company also noted that it had already accounted for the fine in its 2024 financial results.
