The European Union has imposed fines totaling $675 million CAD (458 million euros) on Volkswagen, Stellantis and 13 other carmakers, as well as their trade association, for taking part in a collusion related to the recycling of end-of-life vehicles.
The announcement was made on Tuesday by the European Commission, three years after the start of an extensive investigation of the companies involved.
The European Automobile Manufacturers Association at the heart of the cartel
The collusion, which covered a period between May 2002 and September 2017, was orchestrated by the European Automobile Manufacturers Association (ACEA), which facilitated contacts and meetings between the companies involved.
Anti-competitive practices in vehicle recycling
The recycling of end-of-life vehicles involves the dismantling and processing of end-of-life cars to recover their materials. The EU requires manufacturers to cover the costs of the process, so that car owners can dispose of their vehicles free of charge with authorized dismantling centres.
The European Commission's investigation concluded that carmakers agreed not to compete in communicating their recycling efforts, and also agreed not to pay dismantling centres for processing end-of-life vehicles.
“We will not tolerate cartels of any kind, and that includes those that suppress customer awareness and demand for more environmentally friendly products.”
- Teresa Ribera, Executive VP of the European Commission for Clean, Just and Competitive Transition
Fines imposed on several manufacturers
The main companies sanctioned and their respective fines (in CAD) are:
- - Volkswagen: $188 million (€127.69 million)
- - Stellantis: $146 million (€99.5 million)
- - Renault-Nissan: $120 million (€81.46 million)
- - Ford: $61 million (€41.46 million)
Other manufacturers fined include Toyota, Mitsubishi, Honda, Hyundai, Jaguar Land Rover, Mazda, General Motors, Suzuki and Volvo.
Mercedes-Benz escapes fine
Mercedes-Benz escaped sanctions after alerting the European authorities to the existence of the cartel, thus benefiting from immunity. ACEA, the automobile manufacturers' trade association, was fined $735,000 CAD (€500,000).
All the companies involved acknowledged the facts in exchange for a 10-percent reduction in the fines.
Reaction from manufacturers
In a press release, Stellantis acknowledged the European Commission's decision and reiterated that it cooperated with the investigation from its inception. The company also stated it had set aside provisions to cover the penalty, which is already reflected in its 2024 financial results.