Euro car manufacturers fined for end-of-life vehicle cartel
Fifteen of the world’s biggest car manufacturers have been slapped with massive fines after UK and European regulators uncovered a long-running cartel aimed at controlling end-of-life vehicle recycling. The UK’s Competition and Markets Authority (CMA) and the European Commission have levied penalties totalling £77 million and €458 million, respectively, following an extensive investigation into the practice.
The probe found that between 2002 and 2017, manufacturers illegally coordinated their approach to vehicle dismantlers, ensuring they did not pay for end-of-life services. They also shared confidential agreements with dismantlers and agreed not to promote their recycling rates beyond the legal minimum of 85 per cent, limiting consumer awareness of sustainability efforts.
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Mercedes avoided financial penalties despite being part of the cartel, as it was the whistleblower that exposed the operation. The European Automobile Manufacturers Association (ACEA), the industry body involved in facilitating the cartel, has also been fined €500,000.
Carmakers hit with hefty fines
In the UK, the CMA has penalised several major manufacturers for breaching competition law. The biggest fines were issued to:
- Ford: £18.5 million
- Volkswagen: £14.8 million
- BMW: £11 million
- Nissan and Renault: £10 million
- Jaguar Land Rover and Toyota: Around £4.5 million each
In Europe, Volkswagen has taken the hardest hit with a near €128 million fine. Other major penalties include:
- Renault/Nissan: €81 million
- Stellantis: €74 million
- Ford: €41.5 million
- BMW: €25 million
- Toyota: €23 million
- Hyundai/Kia: €12 million
- Volvo: €9 million
Regulators crack down on anti-competitive practices
Authorities were clear in their condemnation of the cartel, with European Commission Vice-President Teresa Ribera stating that the investigation’s outcome sends a strong message.
“These manufacturers colluded for over 15 years, deliberately avoiding competition on recycling services and suppressing consumer awareness of sustainable vehicle practices,” Ribera said. “We will not tolerate cartels that restrict market competition or limit demand for environmentally friendly products.”
The UK’s CMA, which worked closely with European regulators, is expected to announce further rulings on competition law breaches in the coming weeks.
The penalties mark one of the largest crackdowns on anti-competitive practices in the automotive industry, reinforcing a global shift towards greater accountability in sustainability efforts. With electric vehicles and eco-friendly manufacturing practices now at the forefront, regulators are keen to ensure that carmakers operate transparently, giving consumers access to the full picture on recyclability and environmental impact.
