The European Commission has imposed fines totaling approximately 458 million euros, $495 million, on 15 major automakers and an industry association for engaging in a cartel that undermined competition in vehicle recycling.
According to EU regulators, companies such as BMW, Ford, Stellantis (the parent company of Jeep), and Volkswagen participated in anti-competitive agreements designed to evade payments to car dismantlers and reduce consumer-driven pressure to improve recycling efforts.
EU antitrust chief Teresa Ribera emphasized the commission’s commitment to addressing collusion in environmental matters.
“We have taken firm action against companies that colluded to prevent competition on recycling,” she stated in an announcement accompanying the penalties.
The cartel’s existence came to light when Mercedes-Benz, a participant in the scheme, disclosed its operations to authorities. As a result of its cooperation, the company was granted immunity and avoided a fine of 35 million euros.
The European Automobiles Manufacturers’ Association (ACEA), a key industry lobbying body, played a role in facilitating the arrangement by organizing meetings and discussions among the manufacturers, the commission revealed.
Under European regulations, vehicle owners must have the option to dispose of unroadworthy or end-of-life vehicles through dismantlers at no cost, with manufacturers covering expenses when necessary. Additionally, buyers must be informed about the recycling efficiency of new cars.
However, the companies involved—including Toyota, Suzuki, Volvo, Honda, Renault, Mitsubishi, and Opel—coordinated efforts to sidestep these obligations.
They shared sensitive details of their individual agreements and collectively decided against publicizing the extent to which vehicles could be recycled, repurposed, or built using recycled materials.
“These car manufacturers coordinated for over 15 years to avoid paying for recycling services,” Ribera noted, reaffirming the EU’s stance against anti-competitive practices. “We will not tolerate cartels of any kind, and that includes those that suppress customer awareness and demand for more environmentally-friendly products.”
